Netherlands: How To Avoid Making A Mess Of Your Payroll In The Netherlands

Think all Dutch payroll providers are the same? Let me explain why partnering with the right local specialist is so important.

I'll be honest with you - setting up a new client who has been with another payroll provider can be no walk in the park. Unlike TMF Group in the Netherlands, many other service providers are not part of a wholly-owned network, they don't always have their own people on the ground and may instead sub-contract to local offices. This can lead to data discrepancies and inefficiencies as information is transferred between suppliers.

A large client in the retail industry joined us recently after leaving a previous provider in a pretty chaotic state. Our team discovered they had made a mess of the client's payroll from right when they first entered the Netherlands market.

For 300+ employees and 13 annual payroll runs, the client had six wage tax numbers which was resulting in a lot of unnecessary, complicated administration as they processed six separate entities. There was also a pension fund backlog, and serious issues meeting mandatory pension obligations, putting the company at risk of incurring penalties.

I'm happy to report however that TMF Group's in-house team with expert knowledge of Netherlands payroll legislation, combined with our centralised processes, meant we were able to swiftly pull this clients' payroll into shape. We had them fully established in under two months, including shadow runs, and reduced the wage tax numbers from six to just one. The pension headaches were alleviated and an invoice backlog was dealt with in record time. As a result they are now fully compliant with Dutch payroll legislation, and have greatly reduced their labour and administration costs.

Needless to say, we've had a very happy client ever since.

Choosing the right payroll provider in the Netherlands can greatly reduce your administrative burden – and save you money.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.