Payroll tax in the Netherlands includes income tax withholding and social security contributions. Understanding how payroll tax works helps both employers ensure compliance and employees understand their payslips.

Components of Payroll Tax

• Income Tax: Progressive rates withheld at source
• Social Security: AOW, WLZ, WW contributions
• National Insurance: Various social benefit premiums

Employer Responsibilities

• Correct Withholding: Calculate and remit proper amounts
• Monthly Returns: Submit payroll tax returns
• Annual Statements: Provide employee tax statements
• Record Keeping: Maintain 7 years of documentation

Learn about payroll tax calculations, compliance requirements, and how special situations like the 30% ruling affect withholding.