What is payroll?

Payrolling: Streamline Your Staffing Process

Are you in need of staff but prefer not to handle the intricacies of employment? Look no further! With payrolling, you can conveniently hire employees through a trusted payroll company. By entering into a contract with them, you gain access to a pool of dedicated professionals while ensuring they receive fair working conditions.

What is Payrolling?

Payrolling is a specialized method of hiring staff. When you opt for payrolling, the payroll company becomes the official employer of the individuals working for you. Think of it as borrowing their services while retaining complete control over recruitment, salaries, and supervision. Meanwhile, the payroll company expertly handles administrative tasks such as labor contracts, income statements, salary administration.

Responsibility of Payroll Tax Payment

Rest assured, the payroll company takes care of payroll tax and social insurance contributions. Nevertheless, it’s essential to note that the Dutch Tax and Customs Administration may hold you liable if the payroll company fails to fulfill these obligations. To mitigate risks, select a payroll company with the SNA quality mark from the Dutch Labor Standards Association (Stichting Normering Arbeid, SNA). These companies undergo periodic checks, ensuring the interests of all parties involved.

Terms of Employment 

Payroll employees are entitled to the same working conditions as those directly employed under fixed-term or permanent contracts. If you engage staff through a temping agency or payroll company, it is imperative to inform the payroll company about the working conditions in your organization. This information must be provided before the official commencement of work by the payroller. If you don’t have existing staff, the working conditions applicable to similar positions in your sector will apply.

Dismissal of Payroll Employees

Payroll employees enjoy the same protections against dismissal as employees with fixed-term or permanent contracts. In cases where a proposal to dismiss a payroll employee is brought before the Employee Insurance Agency (Uitvoeringsinstituut Werknemersverzekeringen, UWV) or a judge, they will examine the circumstances at the company where the employee is deployed. Importantly, the termination of a payrolling arrangement between the company and the payroll company does not justify dismissal.

Ready to simplify your staffing process with payrolling? Contact us today and discover the benefits of efficient employee management.

Note: This document provides general information. For detailed inquiries, please refer to the official Netherland’s Government website or consult with legal professionals.