Orange Tax Services provides payroll solutions in the sense that we process payrolls for employers. We do not, however, employ personnel on our own payroll for any other company. In other words, we do not provide umbrella services. In that sense, we are not a payroll company.
Payroll setup process
Our payroll solutions are as follows. We register the employer with the tax office and make trial calculations for the employer so salaries can be determined. Our payroll professionals can make calculations based on total employers’ costs, gross to net calculations, net to gross, and net or gross calculations to employers’ costs.
Once the salary has been determined, we process the salary and inform the client – the employer. The client may also request us to process the payments if, for example, the employer does not have a bank account in the Netherlands. We work with a third party bank account system, which means the money transferred to this bank account is shielded from any possible bankruptcy of Orange Tax Services.
The client is presented with the salary specifications and wage tax return showing the amount that needs to be paid to the tax office and the journal for the client’s bookkeeping. If we process the payments, we present everything in a single fund request. The moment the funds are received, we process the payments to the employee, tax office and social institutes.
Employer registration – resident and non-resident
The employer may be a domestic company or a non-resident company. If domestic, we use the existing data to register the company for wage tax purposes. If the company already has a wage tax registration, we copy the existing salary processing specifications for the current calendar year. This is a requirement as the wage tax is calculated on accumulated data.
We only register non-resident companies for wage tax purposes. This means that the foreign company is not made liable for any other tax but the wage tax related to their company employee. Why is it not possible for a foreign employee to simply pay the Dutch resident employee a foreign taxed salary? This is set out in the tax treaties. Work done in the Netherlands only gets taxed in the Netherlands.
All fees are in Euros, exclusive of 21% Dutch VAT.
The registration with the tax office as non-resident employer entails a fixed fee of EUR 250 ex-VAT.
This concerns the monthly administration of the salaries, Dutch wage tax and social security premiums. The information provides monthly payroll slips (one for the use of the employer and one for the employee), payment sheets, social security and wage tax statements and all other necessary information concerning the staff.
The services are provided by our payroll department. The costs amount to EUR 120 per month plus EUR 10 per employee per month starting from the next employee, that is including salary specifications. Additional administrative assistance (if required), such as corrections, trial calculations and deregistrations on a time spent basis at an hourly rate of EURO 160 ex-VAT.
The services are provided by the tax consultants for a one-off charge of EUR 500 on a no-cure no-pay basis ex-VAT.
Payment processing services cost EUR 100 per quarter.
Answering questions from the Dutch tax authorities and giving you tax advice will be invoiced on a time-spent basis. The applicable hourly rate amounts to EUR 160. Calling us is normally free of charge.