Let's know about Payroll tax Netherlands in detail Are you looking for help with global payroll services in the Netherlands? Access financial is a global Payroll technology partner who can introduce you to payroll services provided from their global payroll network. Let's know about the basic facts about payroll in Netherlands If you are a business owner, then you must register with the Dutch tax authorities and receive a payroll tax number. Also, all income taxes and social insurance contributions are at a federal level and all business owners in the Netherlands are responsible for withholding tax at source. Business owners are required to maintain a basic minimum standard of workplace protection including minimum wages as well as standard hourly work week. Non mandatory employee benefits are regulated by single contracts and agreements. In addition to this, businesses withholding payroll taxes must retain each of their employee payroll records for at least 7 years. All workers including overseas are taxes on all Dutch income and must file a tax return with the government of the Netherlands. Income tax The Netherlands has a progressive income tax system with increasing rates for increasing total yearly income. Also these rates change almost every year. Also, income tax is due to be paid to the authorities by the last day of the month following in which the income was generated. Income tax from employment 2020 Tax bracket applicable tax rates â‚Ź0 - â‚Ź68,507
37.35%
â‚Ź68,508 and up. 49.5% Included in the tax rates are premium social security which are levied primarily in the first tax bracket. Payroll taxes consist of wages. National insurance contribution, employed person's insurance scheme contribution and income dependent health care insurance act contribution. Know about various types of payroll tax in Netherlands There are mainly 3 areas covered by payroll tax and you will notice that it encompasses almost every type of social contribution and taxation. Wage tax This tax is the term for withholding employee income tax but it is included under the payroll tax terminology or calculation in the payslip. Income tax rates rages from 9 percent to 51 percent. Social security contributions
For employees, the total social security contribution is 27.65 percent which is broken down into various types of advantages. For example- 17.9 percent old age social security, .1 percent dependent or spouse and 9.65 percent for long term care. Premiums for employer insurance Employee paid social security contributions for insurance include unemployment insurance, occupational disability insurance and children allowances. Keep in mind that employer contributions are capped at a yearly salary level of EUR 55927.