Recruitment agencies
Recruitment agencies
Eliminating risks
If you hire or supply local or expatriate staff to the Netherlands, our compliance service will be a valuable resource to you. It is the ideal solution for companies fully aware of the consequences, under Dutch employment law, of hiring or supplying labour that could lead to employment for an indefinite period. Our service eliminates all risks of payment of national insurance and income tax contributions as a result of sequential liability. This is also to do with the Collective Agreement for Temporary Employees (uitzend-CAO) and the Flexibility and Security Act (Flexwet) as well as issues relating to the Declaration of Independent Contractor Status (VAR)*. By adopting our clear and easy to follow criteria, you receive the most appropriate mix from our range of compliance services all clearly set out in the form of contract management or payroll management –appropriately linked to a carefully drawn up Service Level Agreement (SLA).
* You may be liable to pay tax and/or national insurance contributions after all. A Declaration of Independent Contractor Status (VAR) does not automatically discharge you from this liability. You will not have these concerns with Yellowstone, because keeping the records, auditing and settling these issues are also part of our service. This also applies if you have a company that supplies temporary staff. This enables you to offer your customers compliance, a guarantee that you can emphasise to your clients because we, as an independent third party, have no direct interest in the people you supply.
As a result of a number of court rulings, the policy regarding the issuing of VAR declarations has changed. Since 1 June 2010, the national VAR coordination desk of the Belastingdienst/Noord tax authorities also handles foreign VAR requests. Furthermore, VAR declarations are also issued as soon as possible for non-residents, regardless of whether they are liable to pay tax in the Netherlands or abroad. This is an important improvement of the legal certainty concerning foreign self-employed persons without staff. They can now ask self-employed business owners without staff for a VAR stating that profits are from business activities. The clients then no longer have to determine whether an employment relationship exists, and are protected against additional assessments of wage tax and national insurance contributions.
For hirers (recipients) of temporary staff, we can verify the VAR. To ensure each company providing labour to temporary hirers completely within the letter of the law relating to the VAR, we ask it to have a declaration drawn up each quarter concerning their company’s financial status and record concerning payment of tax and national insurance contributions, if applicable. Should the external party be unable to offer the expected level of compliance, we recommend that due payments be transferred directly to the implementing tax authorities to indemnify the hirer of temporary staff against any claims with regard to the Recipients’ Liability Act (Wet Inlenersaansprakelijkheid).
Payroll management
Sometimes contract management alone is not enough to limit risks, or perhaps it is not advisable. In such a case, we can include the people you hire or employ on our payroll. This requires us to take over the employment contract and all the associated staff records. In considering that, we determine together which services we need to provide. These can include:
- Drawing up an employment contract with the employee
- Making a personal file for the hired person
- Administering the payroll (processing the monthly figures, drawing up and sending the salary slip to the hired person and to the client)
- Ensuring accurate and timely payments are made to the tax authorities
- Ensuring accurate and timely that payments are made to hired staff
- Taking care of the invoice flows to your company
- Drawing up quarterly compliance declarations
- Providing various insurance policies, such as a group health insurance.
Contract management
When a company requires the skills of self-employed people a Declaration of Independent Contractor Status (Verklaring Arbeidsrelatie, VAR) is required to mitigate the business owner from any liability to pay tax and/or national insurance contributions for these freelancers. This Declaration is obtained by Yellowstone as an integral part of the contract management services we provide. Our dedicated team monitors the contracts, and handles the associated invoices and payments. This results in a business owner / hirer (or recipient) of temporary staff never to be confronted with unnecessary tax assessments and unwelcome fines for any self-employed individual hired through our contract management service. As Antoinette Willems proudly boasts : “By using our services, self-employed individuals and companies that supply them are also providing their clients with compliance under Dutch law. As an independent and professional third party, we perform regulated status checks and determine accurate risk profiles. This ensures the self-employed person and the business owner / recipient he works for, always to know where they stand.”
