Payroll Administration

In the Netherlands, the employer is legally required to withhold payroll taxes for all staff members employed. The employer subsequently pays the payroll taxes directly to the Dutch tax office. This way, employees receive their salary net, free of tax. They don't have to worry about tax dues on the income received from you as employer. 

Payroll taxes

Payroll taxes consist of the following components:

  • Wage tax and premium national insurances (state pension. survivor's pension, special care cost)
  • Premium employee insurances (unemployment, occupational disability, sick leave)
  • Income dependent contribution health care cost insurance

Income basis for payroll taxation

The payroll taxation is calculated over the employee's total income before tax. The total income is may comprised of the following:
  • salary before tax (gross salary)
  • received benefits in kind (such as gifts, use of company car, lunches, etc)
  • received tips and company fund payments
  • received (restricted) stock options

Blue Umbrella for Dutch tax matters

Living and working in the Netherlands for a time? We can help you with your Dutch taxes, so you don't have to deal with the Belastingdienst yourself. Whether you're employed or have a small business, we'll make your life easier and save you money.