Outsourcing your payroll can serve as a less expensive, simpler method of paying your employees and filing your wage tax returns on time and in full. Outsourcing your payroll also provides peace of mind and the assurance that you are paying the correct wage tax and social security returns in full and on time. You will not have to worry about incurring tax penalties for late or incomplete filing and payment. Your company and your employees can focus solely on your core business and profit-generating activities, without ever having to worry about payroll management.
A simple search on Google for “payroll provider Netherlands” yields about 10.4 million results. Considering how many payroll providers and services are available in the Dutch market, companies, particularly those based outside the Netherlands, may find selecting a payroll provider a time-consuming and confusing task.
WePayPeople has compiled this guide to help you find your perfect payroll provider.
Think about the payroll services you require from a payroll provider. Many companies need a basic payroll service that helps hem process their payroll correctly, pay their employees on time and file their wage tax returns on time and in full. Others organisations, particularly international companies with Dutch branches or those that send employees to the Netherlands on international assignments, require additional services such as pension administration, the application of the 30% ruling to their payroll and shadow payrolls. Some companies operate under specific Dutch collective labour agreements (CAO – Collectieve Arbeidsovereenkomst) and therefore require specialised payroll administration to adhere to these agreements.
You will be communicating regularly with your payroll provider, so make sure the method and frequency match your needs. Evaluate potential payroll providers based on the services and pricing outlined in their proposal and see how they respond to your questions. This may serve as a good indicator of the quality of service you will receive as a customer.
Ask if there is a dedicated contact for your payroll. Companies based outside the Netherlands may prefer to have their questions answered by a native speaker of English, as well as wanting to outsource Dutch communications with the tax authority.
Ask potential providers to detail their basic services and the processing time for monthly and mid-cycle changes in their proposal. Agree on when and how you can communicate with your payroll provider regarding cycle changes (hours, salary increases, fixed and variable payments and deductions, new hires, terminations), last-minute changes and off-cycle payments. You should also agree on when and how you will receive payroll output (reports, payslips, journals) from the payroll provider.
Typical payroll provider pricing includes one-time employer and employee setup fees, an application fee for a wage tax number and Dutch social security numbers for employees (if required) and an on-going fee per period per payslip for processing payroll, producing payslips and submitting wage tax returns. Pension administration and payslips sent by regular mail (as opposed to email) are usually considered additional services. Ask potential payroll providers whether there are surcharges for late submissions of changes or for the correction of errors.
Talk to current clients and ask how quickly and correctly the payroll provider responds to questions and whether there have been any problems with accuracy. Ask referees why they switched to their current payroll provider and whether they would choose the same provider again. Finally, ask the potential provider to give you an up-to-date statement from the tax authority for the payment of wage tax returns. This should serve as an indication that all returns have been paid in full and on time.
WePayPeople is the fastest growing payroll provider in The Netherlands, offering outsourced payroll solutions to companies based within and outside The Netherlands. We are a unique combination of experienced and qualified payroll specialists, innovative ICT and multilingual customer service. Want to know more about WePayPeople’s payroll services? Feel free to call us at +3120 820 15 60 or fill in the contact form.
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