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Dutch payroll services

Guide to Dutch payroll

Choosing the right payroll provider is essential to pay your staff accurately, on time and in accordance with the law.

The tax authority (Belastingdienst) offers clear guidelines for the withholding and payment of income tax, social security contributions and income-related health insurance contributions, as well as the issuance of payslips, payroll records to be kept and the returns to be submitted. All of these requirements are related to payroll.

A simple payroll may have just one employee who gets paid the same monthly salary: for example, a shareholding director. A more complicated payroll may concern a higher number of employees with fixed and variable payments and deductions, pension administration, a higher turnover rate, payrolls benefitting from the application of the 30% ruling and shadow payrolls. WePayPeople has compiled this guide to help you find the perfect payroll provider.

You can also read more information about Payroll on our Dutch Payroll website

Payroll systems – manual or automated

When it comes to choosing a payroll system, companies have three options to choose from.
The tax authority provides a payslip template which can be used by companies that do not wish to automate or outsource their payroll. However, this is a time-consuming method of administration which does not support the online submission of wage tax returns and relies on in-house expertise on payroll administration and employment law.

Automating your payroll process provides greater control and ensures your system is automatically updated for any payroll changes, but it still requires specific in-house knowledge and experience to ensure its correct execution. When taking these factors into consideration, many companies based in the Netherlands and outside it decide to outsource their Dutch payroll to a specialised payroll provider.

Outsourcing your Dutch payroll: multiple advantages

  • Experience and knowledge of the workings of the Dutch tax system;
  • Experience and knowledge about the wage tax returns;
  • Returns and the associated payments for wage tax and social security contributions can be sent directly to the tax authorities;
  • Assists with the application for a wage tax number and Dutch social security numbers for your employees;
  • Offers customized reporting;
  • Offers journals to transfer into your accounting system;
  • Offers targeted advice on how best to administer your payroll within the Dutch taxation regulations.