What is shadow payroll and how does it work?
Shadow payroll is a mechanism for employees who are sent to the Netherlands from abroad but also vice versa (employees who are sent to the Netherlands from abroad). Such a deployment often has consequences for the applicable social security and tax liability. It is important to know where the employee is socially insured and where wage tax and national insurance contributions must be paid.
A shadow payroll may be necessary in the following situations:
- An employee who works in several countries;
- An employee is on the payroll in one country, but has been posted to another country (this is especially the case if he wants to remain socially insured in the first country).
Read more about shadow payroll and how this can affect you or your employees: