Avoid unnecessarily high social security premium. How do you arrange this? Namely by implementing a correct identification obligation.
An important obligation for the employer when hiring an employee is the identification requirement. An employer must identify a new employee by means of a valid and original proof of identity, such as a Dutch or foreign passport or identity card, a Dutch residence permit or a Dutch aliens or refugees passport. A driving licence is not a valid document for establishing the employee’s identity.
But what if a new employee does not identify himself, even after several reminders? Or that this person comes with an expired document? Then, as an employer, you must treat this person as an anonymous employee.
When does the employer apply the anonymous rate?
The anonymous rate is applied by the employer in the following situations:
- The employee has not provided his name, address or BSN to the employer (before the 1st working day or on the 1st working day if you hire the employee on that day).
- The employer does not establish the employee’s identity.
- The data are not or not correctly stored in the payroll administration.
- The employer knows or should have known that incorrect data were received from the employee.
- The employee does not have a residence permit or work permit.
The consequences for the application of the anonymous rate
Applying the anonymous rate means that the employer has to withhold 52% income tax/national insurance premiums on the salary without using the wage levy discount. The application of the wage levy discount may not be taken into account. This results in a lower net wage due to a substantial deduction from the salary. For the employer, the application of the anonymous rate means that the maximum premium wage for the employee insurance premiums and the employer healthcare insurance contribution may not be taken into account. This can also lead to substantially higher employer costs for the employer. The anonymous rate is therefore a measure that is better avoided. This can be done by complying with the legal (administrative) obligations.
Need help? Get in touch with us!
We hope the above points of attention have given you more clarity on how an employer can reduce his wage costs. In case you have questions or need help, do not hesitate to contact us. You can reach us at firstname.lastname@example.org or call +31 15 215 88 15.