Procedure: how to obtain a wage tax number
This article explains how to register as an employer in the Netherlands and what information you will receive from the Dutch tax authorities.
If you are hiring staff, you have to register using the form ‘Loonheffingen Aanmelding Werkgever’ (Wage taxes Registration Employer). This form must be sent to the tax authorities by post.
Registration via the Chamber of Commerce
If you immediately start employing personnel at the start of your business, you can register as an employer when you register your new business at the Chamber of Commerce (KVK). The Chamber of Commerce takes care of the processing towards the tax authorities.
If your company is registered in another country and you are starting activities in the Netherlands you also need to register your Dutch activities at the Chamber of Commerce. The registration with the tax authorities can stay limited to wage taxes only if you are only employing staff in the Netherlands without a permanent establishment.
Wage tax number
After the tax authorities have received the registration form, you will receive a wage tax number within 5 working days.
If you register before an employee enters service, you will receive a wage tax number within 5 working days after the employee enters service.
Wage tax return letter
After registration you will receive the ‘Wage tax return letter’ within 3 weeks. This letter contains the following information:
- the periods for which you have to file the wage tax return
- the latest declaration and payment date per period
- the payment reference per period
You need this information to file and pay your wage tax return in time.
Article: Wage tax in the Netherlands
The tax authorities issue the letter only once, so keep it in your administration.
Data employee insurance
If you have to pay employee insurance premiums, you will receive letters within 4 weeks with information about:
- the sector classification
- the percentage for the differentiated premium Werkhervattingskas (Whk)
Sector classification / sector affiliation
All employers are assigned to a sector by the tax authorities. This sector classification is important for the amount of a number of premiums.
The sector in which an employer must be affiliated depends on the activities that are actually performed and the function of the employer in society (functional classification). The basic principle is that employers who perform the same activities must be affiliated with the same sector. So it is important that the correct activities are registered at Chamber of Commerce/tax authorities. Premiums vary per sector and the difference in amount can be considerably.
What does the Werkhervattingskas (WhK) involve?
The Werkhervattingskas (Work Resumption Fund) is part of the employee insurance schemes. These premiums are used to fund employees who are ill or disabled for work. Many employers are faced at some point with employee absence due to illness. This may be short or long-term sick leave.
Employers have a number of obligations that must be met around the reintegration of employees. These include the duration of the absence and the type of contact the employee has. By complying with these obligations, employers can avoid the risk of a possible increased Whk premium.
How is the Whk decision drawn up?
The premium percentages used by the tax authorities are determined based on the total salary bill which is subject to premiums social security for the previous two years. So the percentages for the year 2021 are calculated with the information from the year 2019. A distinction is made among employers between three different employer sizes (employer categories). Different contribution rates apply to these different categories. Each year in November, the tax authorities send the Whk decision to employers for the following year. For starting employers the premium is calculated differently since the employer doesn’t have a history yet.
Employees insured at a later date
You already registered as an employer, but you will take on employees at a later date for whom you have to pay employee insurance premiums? If so, report this using the form ‘Melding Loonheffingen Premies werknemersverzekeringen betalen’ (Notification Wage taxes and Premiums employee insurance payment).
Acquisition of a company
If you are starting a business by taking over a company with employees, you can register as an employer immediately upon registration with the Chamber of Commerce.
In addition, you and the transferring employer must submit the form ‘Melding Loonheffingen Overdracht van activiteiten’ (Notification Wage taxes Transfer of activities). You should also use this form if the legal form of the company changes or if you are already an employer and acquire another company with employees.
Consequences for the ZW and Whk premiums
If you acquire a company with employees, the allocation of any ZW and WGA benefit costs will change. This may also change the differentiated premium.
Expatax can help you!
Expatax can help you with your payroll administration in the Netherlands which includes the registration as an employer and arranging all required numbers. This will save you a lot of work and stress.