Tax registration plan for employers
16.10.2019When you decide to hire staff, you must, as an employer, withhold payroll taxes from your employees' salaries. You will face this obligation as soon as you first hire someone. You will have to pay the withheld money to the tax authorities; in order to do this, you need a separate registration and employer tax number. Read below how to do this.
If, when registering your company, you already know that you are going to hire someone to work, indicate this immediately when registering with the Chamber of Commerce (KvK), and they will already inform the tax office about you.
In this case, your registration as an employer will require the following steps:
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Registration in the commercial register.
After registering with the Chamber of Commerce, your company will be added to the Commercial Register. The registration process may differ depending on the legal form you choose.
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Filling out the tax form.
To be more precise, there are two forms with which you can inform the tax office that you are starting a business and will hire personnel. These are the forms: “preparation for joint registration” (Voorbereiding Gemeenschappelijke Inschrijving) and "tax reporting on employer registration" (Melding Loonheffingen Aanmelding Werkever).
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Filling out a form for children working with you.
If you plan to employ your minor children, please also fill out the form “Notice of Payroll Tax for Working Children” (Melding Loonheffingen Werkgever van meewerkende kinderen). The IRS regards this in some cases as a special employment relationship, in which case you can use a simplified payroll tax scheme. So, for example, you can declare payroll taxes once a year (as opposed to the usual once a month).
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Meeting at the Chamber of Commerce.
Make an appointment at the Chamber of Commerce. Please bring your completed forms to this meeting. Registration takes place during this meeting.
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Obtaining an employer's tax number (loonheffingennummer).
Wait until you receive your special payroll tax identification number (loonheffingennummer) by mail. You will need it for filing your payroll tax returns. In addition, you will receive a letter stating the reporting period for which you will have to file your return (four weeks or a month).
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Payment of contributions
You will also receive a differential contribution letter to the Werkhervattingskas (Whk). This is the contribution that each employer pays to the UWV under the Partly Able Workers Act (WGA) and Sickness Benefits Act (ZW). The amount depends on your company's disability risk. If you are working on a franchise, this fee is less.
Pay attention!
Steps 1 through 4 will be different if you are registering a BV with staff. With this legal form, a notary will register you with the Chamber of Commerce and the tax office.
What if you decide to hire staff for an already operating (registered) company?
In this case, you must report this to the tax office by submitting a special form, namely the form "tax reporting on registration of the employer" (Melding Loonheffingen Aanmelding Werkgever). And then everything is the same: a form for children who work with you, obtaining an employer's tax number and actually starting the filing of wage declarations and paying payroll tax.
Pay attention!
Once you register as an employer, you must file your payroll tax return on time. This should be done even if you have not hired anyone yet, but are only planning.
