The payroll company will among others take care of the labour contracts, annual income statements, salary administration and pension accrual. They provide employers exclusively with long-term staff on the basis of a payroll contract.

Responsibility payroll tax payment

A payroll company pays the payroll tax and social insurance contributions. However, the Dutch Tax and Customs Administration (Belastingdienst) can hold you liable if the payroll company fails to do so. Some payroll companies have the SNA quality mark of the Dutch Labour Standards Association (Stichting Normering Arbeid, SNA). SNA periodically checks these companies, which limits the risks for all parties involved.

Terms of employment and dismissal

The collective labour agreement (cao) for temporary agency workers may apply to payroll employees. Payroll employees are equally protected against unfair dismissal as regular employees. When asked to judge an intended dismissal of one of your payroll staff by a payroll company, the Employee Insurance Agency (Uitvoeringsinstituut Werknemersverzekeringen, UWV) or a judicial court will take the hiring company's circumstances into account. The mere termination of the agreement between the payroll company and its client will be regarded insufficient ground for dismissal.

Self-employed professionals and payrolling

With payrolling you, as a self-employed professional, work through a payroll company. You are not their employee. The payroll company takes care of your invoices, salary administration and medical insurances, incapacity for work and unemployment. You arrange your assignments yourself. You will no longer be entitled to private business ownership allowance and VAT deduction.


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