How Payroll Services Can Simplify your Expansion to the Netherlands

Starting or expanding your business to a new market abroad is often overwhelming operationally. Not only are there enough processes and procedures that you need to establish at your new location, but you must do so while also battling cultural hurdles.

The Netherlands is one of the top choices for foreign investors seeking to penetrate the EU market – in fact, it has been ranked 4th by Forbes’ “Best Countries for Businesses” for great protection of employees, and attractive financial incentives for business owners.

To make the most out of these benefits from your first day, it is essential to ensure your business records and payroll processes are ready-to-go. Connecting with a payroll partner will not only help you pay your employees’ wages every month, but it can help you achieve some of the most important operational goals for new businesses. Read on to learn more about how payroll services can support your expansion beyond just administration.

Identifying your Dutch Business Entity

Before checking office space vacancies, you should go through requirements for entity establishment and business structure. If you’re registering a new business in the Netherlands, it’s important to take the time to evaluate the right entity – it will significantly affect HOW you conduct your payrolling.

No matter which entity fits your business best, you still need to comply with the local employment law and fulfill your responsibilities as an employer when hiring workers. Therefore, payroll services are beneficial to avoid a host of potential regulatory problems, including problematic tax and immigration statutes.

International Deployment

One of the top reasons foreign businesses choose the Netherlands is due to the highly skilled and educated talent available. Moreover, the Netherlands strives to make is as simple as possible for businesses to hire exactly who they need – whether they be Dutch or hired from abroad.

In order to ensure businesses who hire from abroad can support their employees — businesses must earn the status of IND Recognized Sponsor. A recognized sponsor is verified by the Dutch Department of Immigration through a relatively costly and lengthy process.

Believe it or not: Dutch payroll companies can enable these foreign businesses to manage their International Deployment by becoming recognized sponsors themselves. You can outsource your payroll to a third-party company with an IND-sponsored status, such as Octagon Professionals, if you don’t want to go through the recognition process. By using payroll services, your partner would handle all the payroll requirements and paperwork on your behalf, with respect to highly skilled migrant visa enquiries.

Keep up with Changing Regulations

When setting up a new business in the Netherlands, it is important for you as an employer to keep update with constantly changing regulations from the government. Furthermore, the Dutch Labour Law is very protective of employees in the Netherlands and your responsibility as an employer is to ensure the standard conditions of employment. The Dutch Labour Law contains many specifics that are not common in other countries. These can include 8% holiday allowance, sickness coverage, probation period, and pension. To have an overview of these specifics, read more here.

Depending on your business sector, one important aspect to keep in mind is whether you may have to work with a collective labor agreement (CAO). CAO is a written agreement between the employers and trade unions about the labor conditions for all employees. If there is no CAO, you need an individual agreement with your employee in terms of the work conditions.

By outsourcing your payrolling, you can gain access to a team of experts who understand the complicated realm of government regulations and legislation and can take care of your human resource-related issues.

Meet your Tax Obligations

In the Netherlands, business owners are required to register with the Dutch Tax and Customs Administration (Belastingdienst). Upon employing staff in the Netherlands, you are obliged to pay wage tax and other social premiums to the Tax and Customs Administration on a monthly basis, with payments due by the end of the month following payroll. There are many social security schemes that benefit employees in the Netherlands.

Generally speaking, expanding to a new country involves considerable administrative duties. Meanwhile, labor laws, data requirements, and tax regulations are complicated. Therefore, partnering with a trusted payroll services provider, you have experts to handle your employee’s paycheck, along with accompanying tax withholding obligations and social security contributions.

Find a trusted partner for payroll services and expansion in the Netherlands

When it comes to payrolling in the Netherlands, your success hinges on finding a partner who can meet your unique needs and requirements. You wouldn’t need to have an entity in the Netherlands to employ the staff you need. Meanwhile, your concern can be boiled down to your new establishment in the Netherlands.

As a payroll services provider, Octagon Professionals will handle payroll administration, social security contributions, management of your employment contracts, management of your employees’ pension schemes. With our Intuitive Cloud and App-based HR Portal for timesheets, expenses and submitting leave requests, we ensure the accuracy and transparency of your employees’ data.

Schedule a consultation with us today, and take the first step in being fully compliant with Dutch payroll and HR requirements.

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