In the Netherlands, employers must take several factors into account when they calculate payroll tax. First of all, the amount due will depend on the employee’s status and contract. The duration of their stay in the Netherlands and their level of expertise may make them eligible for certain tax deductions and benefits. When you calculate your payroll tax, you must reflect these considerations in the calculation. Additionally, a complete overview is important. Each form of wages must be weighed when you calculate payroll tax. Besides monetary wages such as salary, overtime wage, holiday pay, bonuses and commissions, this also includes secondary wages such as allowances and provisions. In many cases, Dutch tax law will differ from tax laws in your native country. It is, however, necessary to follow Dutch tax laws to the letter when you calculate payroll tax.
Differences in your employees’ contracts and activities will affect the way you calculate payroll tax. Employees with, for example, a temporary contract are subject to different rules, as are those with specific skill sets that are currently underrepresented on the Dutch labour market. Each contract will impact the frequency and depth at which you calculate payroll tax. The latter category is especially interesting given the tax benefits available to uniquely skilled expatriate workers. Thankfully, you will not have to waste time working out the details of the Netherlands’ complicated tax regulations. The Dutch Umbrella Company can help you calculate your payroll tax efficiently and transparently.
In the Netherlands, figuring out how to calculate payroll tax correctly is a complicated affair. The laws related to payroll tax are complex and the Dutch tax authority’s governance policies are often strict. Therefore, it may be wise to let a service provider calculate your payroll tax for you. Our extensive experience with Dutch tax law enables us to provide that service, but we do not stop there. We like to offer our customers the most complete service package available. WePayPeople’s Dutch Umbrella Company will not only help you calculate payroll tax; we can also assume complete or partial responsibility for your tax administration. If you are interested in finding out what we can do to make your professional life easier, simply contact WePayPeople for more information.
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