What hirer's liability means
Under hirer's liability, the Dutch Tax Administration (Belastingdienst) can hold the hirer liable for payroll taxes that the staffing agency should have paid on the hired workers. This covers wage tax, national insurance and employee insurance contributions and the income-related Zvw (health insurance) contribution.
The liability also applies to the VAT the agency owes on the hiring out. So if the agency does not pay its VAT, the hirer can be held liable for that too.
The liability is laid down by law and applies regardless of what you agree between yourselves in a contract. A clause in which the agency declares that it pays everything properly does not protect you against the Tax Administration.
How the G-account limits your risk
A G-account is a blocked bank account held by the staffing agency. The agency can only use the money in that account to pay payroll taxes and VAT, or to transfer it to the G-account of another company in the chain.
As a hirer you transfer part of each invoice to the G-account and the rest to the ordinary account. The amount you pay into the G-account counts as payment of the tax debt. For that part, you can in principle no longer be held liable.
The percentage is usually stated on the invoice. Make sure you transfer the correct amount, with a reference to the invoice number, so that it is easy to show later which payment belongs to which invoice.
Please note: paying into the G-account limits your risk, but does not rule it out completely in every case. A complete file and a careful choice of agency also count. You can find the exact rules at the Tax Administration.
Work4you! works with a G-account and shows the split on every invoice. An agency with the SNA quality mark gives the hirer extra certainty; our SNA certification (NEN 4400-1) has been applied for. Until then, the G-account is the main safeguard.
Documents to keep each quarter
A good file makes all the difference if questions are ever asked. Each quarter, keep at least the agency's statement of payment history. In it, the Tax Administration states whether the agency is meeting its payment obligations. Work4you! provides this statement every quarter.
Also keep a recent extract from the KvK (Chamber of Commerce) trade register, so you know which legal entity you are doing business with. Record the status of certifications as well, for example a printout from the register or written confirmation of a pending application.
The file should also include an overview of the workers deployed, with the identity check and, where necessary, the check of the work permit or residence status. The hours records, with the hours you approved each week, complete the file. Keep invoices and proofs of payment, including the payments into the G-account, together.
Checking identity and work permits
Apart from taxes, the hirer also shares responsibility for legal employment. If someone works without a valid residence or work permit, this can lead to a fine. The agency carries out the check, but it is sensible to record that it has been done.
So ask the agency for confirmation per worker that the identity document has been checked and copied. On the first working day, also ask to see the identity document yourself, so that the person on the work floor is the same as the one on the list.
What else you can do
Only work with agencies that are open about their administration. Ask about NBBU membership, the cao that is applied and the way in which hirer's remuneration is determined. An agency that pays the correct remuneration is less likely to face additional tax assessments.
Also bear in mind that the rules are changing. With the introduction of the Wtta a licensing requirement for staffing agencies is coming. If you want to know how Work4you! is handling this, take a look at the page for clients.