G2N Payroll Engine Netherlands

G2N Nova stands out as the premier Gross to Net Engine Netherlands, delivering flawless and 100% accurate payroll calculations for Dutch businesses and over 100 other countries. Designed for real-time processing, this cutting-edge solution ensures seamless gross-to-net calculations through a unified, native platform—without ever accessing or storing personal employee data.

Uniquely optimized for the Dutch payroll system, G2N Nova handles complex payroll tax calculations for employees based on their nationality, ensuring compliance with local regulations. Whether it’s adapting to updates in Dutch tax laws or processing payroll in the cloud, G2N Nova guarantees precise, real-time results.

This innovative Gross to Net Engine Dutch is built to meet the strict data privacy standards of the Netherlands, ensuring sensitive employee information remains securely within your own systems. By processing all calculations without storing personal data, G2N Nova offers businesses a secure, efficient, and privacy-conscious solution for global payroll management.

The first gross to net payroll tax engine for the Netherlands

Need the latest payroll tax updates in the Netherlands? Our Payroll Tax Engine Netherlands, G2N Nova, is a cloud-based platform designed to provide real-time, automated updates tailored specifically for Dutch payroll compliance. With seamless integration into your existing systems, G2N Nova ensures compliance without the hassle of manual updates or third-party software.

What G2N Nova Delivers

• Continuous updates on Dutch payroll tax regulations, keeping your business compliant effortlessly.
• A smooth plug-and-play solution that works directly with historical payroll data and pay statements in your current HCM, ERP, or WFM system.
• Full compatibility with your existing workflows, eliminating the need to switch to external payroll solutions.

Our Tax Engine Netherlands ensures that payroll compliance is no longer a burden. With G2N Nova, you can focus on growing your business while staying in control of payroll accuracy and compliance.

Solutions

• HCM/ERP/WFM Compatibility: G2N integrates effortlessly with all major HCM, ERP, Time & Attendance systems, enabling organizations in the Netherlands to retain their current infrastructure while fully automating payroll calculations. This ensures streamlined processing and compliance without requiring significant system changes.
• For System Integrators: As a Payroll Calculator Netherlands, G2N empowers system integrators in the Netherlands to seamlessly incorporate cross-border payroll capabilities into their platforms. It simplifies managing international payroll and tax complexities, allowing integrators to maintain complete control over the user experience and deliver customized payroll solutions to their clients.
• For Enterprises: Automate your payroll processes and eliminate operational complexities with G2N. Focus on strategic business priorities—whether it’s expanding into new markets, enhancing your services, or creating innovative solutions—while G2N handles every aspect of payroll compliance in the Netherlands.
• For SMEs: G2N is built to grow with your business. Whether you have a team of 5 or 50,000, G2N offers real-time gross-to-net calculations tailored to your workforce and compliance requirements. It’s the perfect Salary Calculator Netherlands solution for small and medium-sized enterprises seeking flexibility and efficiency in payroll management.
• For Service Providers: G2N helps service providers in the Netherlands streamline payroll operations, saving time and improving overall efficiency. Trusted by leading global companies, our platform enables you to deliver exceptional services to your clients while enhancing profitability.

Various elements such as income, deductions, contributions, and allowances, ensuring that the correct net salary is processed in compliance with tax and social security regulations.

Here are the key employee details needed for this process: various elements such as income, deductions, contributions, and allowances, ensuring that the correct net salary is processed in compliance with tax and social security regulations.
Here are the key employee details needed for this process:

How It Works

Input

• Employee Data: G2N Nova collects critical employee information, such as compensation, benefits, and personal details, ensuring accurate payroll inputs.
• Leave Management: Tracks employee leave, absences, and time-off seamlessly, reducing manual intervention.
• Time & Activity Monitoring: Logs work hours, attendance, and overtime, providing real-time insights for accurate payroll processing.

G2N Nova Process

• Country-Level Filing: G2N Nova integrates directly with Dutch statutory authorities, ensuring precise filing and compliance with local tax and social security regulations.
• Country-Level Compliance: Fully compliant with payroll rules in the Netherlands, supported by an expert in-house compliance team.
• Global Payroll Engine (Gross-to-Net Computation): G2N Nova calculates gross-to-net payroll for employees in real-time, ensuring all deductions, taxes, and net pay are accurate and aligned with Dutch regulations.

Output

• General Ledger (GL): Produces detailed financial entries for accounting and reconciliation.
• Treasury Reports: Provides comprehensive reports to manage cash flow and treasury operations effectively.
• Bank File Creation: Generates payroll bank files to facilitate secure and timely payments.
• Payslips: Issues detailed payslips with transparent breakdowns of taxes, deductions, and net pay for employees.

G2N Nova is designed for seamless payroll processing in the Netherlands, delivering flexibility, scalability, and compliance. By integrating effortlessly with your existing systems, G2N Nova ensures smooth operations, a real-time payroll experience, and complete transparency for businesses and employees alike.

From data input to payroll output, G2N Nova simplifies every step of the process, offering a secure and reliable solution tailored for the Netherlands.

Features of G2N Payroll Engine Netherlands

Gross to Net Calculation

The G2N Payroll Engine Netherlands offers a highly accurate payroll calculator Netherlands, ensuring flawless gross-to-net pay calculations for employees. It factors in all taxes, deductions, and benefits specific to Dutch regulations for reliable payroll outcomes.

Compliance with Dutch Tax Authorities

Fully aligned with Dutch tax regulations, G2N ensures seamless compliance with local requirements, offering real-time updates and precise filings that meet the Netherlands’ legal standards.

Data Privacy & Security

With a strong focus on protecting sensitive employee information, G2N implements advanced privacy measures to secure personal data throughout the payroll process, ensuring businesses stay GDPR-compliant in the Netherlands.

Automated API Integration with Dutch Tax Authorities

G2N Payroll Engine Netherlands features automated API integration with relevant Dutch tax authorities, enabling real-time tax updates and eliminating the need for manual intervention in payroll processes.

GDPR Certified & SOC 1 & SOC 2 Compliant

G2N adheres to the most stringent global standards for data protection and security, safeguarding payroll information.

ISO 20000, ISO 27001, and ISO 27701:2019 Certified

Demonstrating expertise in IT service management, information security, and privacy compliance, G2N maintains a secure and trustworthy payroll system.

OWASP ASVS 3.0 Compliant

G2N ensures robust application security to protect payroll data from vulnerabilities and cyber threats.

Efficiency & Confidence for Dutch Businesses

The G2N Payroll Engine Netherlands, complete with its salary calculator Netherlands, offers a secure, scalable, and efficient payroll solution. From accurate gross-to-net calculations to end-to-end compliance, G2N gives businesses in the Netherlands confidence in their payroll operations while maintaining the highest standards of privacy and security.

Benefits

Employee details required to calculate Gross to Net Salary

To accurately calculate gross-to-net salary in the Netherlands, a comprehensive set of employee details is required. These details enable payroll systems to account for various elements such as income, deductions, contributions, and allowances, ensuring that the correct net salary is processed in compliance with tax and social security regulations.

Here are the key employee details needed for this process:

Wage Tax Number

Required for tax filing and identification purposes.

Wage Tax Credit

A tax relief applied to reduce the taxable income.

Young Handicapped Wage Tax Discount

A specific tax discount for young employees with disabilities.

Payroll Period

The time frame in which the salary is calculated, typically monthly or weekly.

Number Income Relation

A reference number linking the employee’s income to tax records.

Wages in Money

The actual monetary salary earned by the employee.

Wages Other than in Money

Benefits or allowances not in cash, like food vouchers or housing allowances.

Tips and Benefits from Funds

Additional earnings from tips or company-provided funds.

Deductions for All Levies

Any amounts deducted for taxes or contributions.

Wages for Employees' Insurances

The portion of wages allocated to employee insurance premiums.

Wages for the Healthcare Insurance Act (ZVW)

Part of the wages deducted for the ZVW healthcare insurance contribution.

Wages for Wage Tax/Social Insurance Contributions

Wages considered for calculating wage tax and social insurance.

Wage Tax/Social Insurance Contributions Withheld

The amount of wage tax and social security contributions that have been deducted.

Withheld Contribution ZVW

The amount withheld for healthcare insurance under ZVW.

Amount Paid Deducted Employed Person's Tax Credit

The net amount paid to the employee after tax credits are applied.

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Additional Payroll Elements

• Bruto Salaris (Gross Salary): The total salary before any deductions.
• Sick Leave Payout: Payments made for sick leave taken.
• Vacation Allowance (Input): Pre-determined allowance for vacation pay.
• Vacation Allowance (From Accrual): Vacation pay based on accrued leave.
• Retirement Savings Allowance: Contributions to retirement savings.
• Signing Bonus: A one-time bonus paid when an employee joins the company.
• RSU Vested: Restricted Stock Units that have vested.
• Car Allowance: A financial contribution for employees’ vehicle use.
• Phone Contribution: An allowance provided for phone usage.
• Working Days: The number of days an employee is contracted to work.
• Social Security Base: The foundation on which social security contributions are calculated.
• Employees Payables Previous: Amounts owed to employees from previous periods.
• Social Security (Employer and Employee Contributions): Deductions for both the employer and employee portion of social security.
• Income Tax (Employee): The portion of income tax deducted from the employee’s salary.
• 30% Reduction: A special tax deduction for employees moving to the Netherlands for work.
• 30% Net: Net salary after the 30% tax reduction.
• Relocation Allowance Taxable: Any relocation assistance provided that is taxable.
• Monthly Vacation Allowance: The monthly accrual for vacation days.
• RSU Vested (Net): Net income from vested RSUs after taxes.
• Cumulative Basic Salary: The total basic salary accumulated over time.
• Phone Contribution (Repeated): Another instance of a contribution for phone usage.
• 30% Fee: A fee associated with the 30% tax reduction program.

These details ensure that gross-to-net calculations accurately reflect all allowances, benefits, deductions, and tax contributions, leading to precise and compliant payroll processing in the Netherlands.

Wage Tax and National Insurance Contributions Calculations

In the Netherlands, the calculation of wage tax and national insurance contributions depends on an employee’s salary, residency status, and the applicable tax brackets. These contributions are essential to ensure that both the national social security system and state pension contributions are correctly funded.

Wage Tax and National Insurance Bands

• First Band: For employees earning up to €75,518, both wage tax and national insurance contributions are applicable.
• Second Band: For salaries exceeding €75,518, wage tax is charged, but national insurance contributions are not.

For individuals earning above €38,098, only wage tax is applicable, as national insurance contributions are no longer required. Additionally, employees who have reached the state pension age are exempt from the state pension contribution but still contribute to long-term care and surviving dependants’ coverage.

Final Levy

Certain income types may not have wage tax or national insurance contributions withheld from the employee’s wages. Instead, the employer absorbs the cost of these contributions, which is known as the “final levy.”

Automated Payroll Systems

If using automated payroll software, the system will typically handle the calculation of wage tax and national insurance contributions. The software is programmed to apply the correct instructions, which can often be downloaded from the supplier’s website (available in Dutch).

Manual Calculation (Tables)

For businesses not using automated payroll records, the Dutch tax authority provides detailed tables that can be used to calculate the correct wage tax and national insurance contributions. These tables, which are available for different years (2024, 2023, 2022, 2021, 2020, 2019), are available on the official Belastingdienst website. The two main types of tables are:

• White Tables: These apply to wages from current employment or similar income.
• Green Tables: These are used for wages from previous employment or equivalent benefits.

Employee Groups and Residency Status

The wage tax tables differentiate between three main employee categories based on residency:

1. Dutch Residents: Employees living in the Netherlands are eligible for both wage tax and the tax-free portion of allowances.
2. Residents of Close Circle Countries: This group includes employees from EU member states, Iceland, Norway, Liechtenstein, Switzerland, and the BES islands. They qualify for the tax-free portion of the employment allowance.
3. Non-Residents: Employees from countries outside the Netherlands or the close circle are entitled only to social security contributions, without eligibility for the tax-free allowance.

Separate Wage Tax Tables for Specific Groups

In addition, separate tables are available for employees from certain countries, including:

• Belgium
• Aruba and Suriname

Employees from these countries are also entitled to the tax-free portion of the general tax credit, similar to Dutch residents.

Tax Codes

A variety of tax codes are used in the Netherlands to identify specific deductions, allowances, or income types. These codes help in applying the correct tax rates and determining which allowances should be granted to the employee. Some common tax codes are:

• Code 010 to 999: These represent different wage categories, including special allowances or extraordinary income.

By following these guidelines and using the appropriate wage tax tables and tax codes, employers can accurately calculate wage tax and national insurance contributions, ensuring compliance with Dutch tax regulations.

G2N provides payroll output including the below

Gross salary represents the total earnings an employer pays an employee before any deductions like taxes and insurance premiums. It serves as the starting point for calculating net salary – the final amount deposited into the employee’s account.

Gross salary can include fixed wages and additional components such as holiday pay, bonuses, or a 13th-month payment, which vary depending on company policy and the specific employment contract.

Employer Contributions

Employers are required to make contributions on behalf of employees for various benefits, including pension schemes, insurance premiums, and other statutory payments. Contributions can include pension, health insurance, disability pensions, and social security schemes to support employees in case of illness or unemployment.

Examples of Gross to Net Calculations

For better understanding, here are a couple of example calculations

1. €3,000 gross per month: After deductions like wage tax (around 37.35%) and national insurance (approximately 27.65%), the net salary would be about €2,025.
2. €2,000 gross per month: With similar deductions applied, the net salary would be approximately €1,350.

Employer’s Total Contributions

Employer contributions consist of various mandatory payments, including pensions, health insurance premiums, unemployment fund contributions, and other social security-related costs. These contributions ensure the employee’s financial security and well-being.

For accurate and up-to-date calculations, G2N’s gross-to-net calculator can be a reliable tool, particularly in the Netherlands, for specific scenarios.

What Exactly Is Being Withheld?

The transition from gross to net salary involves several deductions:

• Wage Tax: A tax on income from employment and housing, varying based on income levels.
• National Insurance Premiums: Contributions to programs like the General Old Age Pensions Act (AOW) and Long-term Care Act (Wlz).
• Health Insurance Act Contributions: This income-based contribution supports healthcare costs in the Netherlands.
• Pension Premiums: Contributions deducted from gross salary towards pension accrual.
• Employee Insurance Contributions: Premiums for insurance covering illness, disability, and unemployment.

Examples of Gross to Net Calculations

To illustrate the gross-to-net process, consider these examples:

• Example 1: €3,000 gross per month: After applying deductions such as payroll tax (approximately 37.35%) and national insurance (around 27.65%), the net salary would be approximately €2,025.
• Example 2: €2,000 gross per month: With similar deductions, the net salary would be approximately €1,350.

To accurately determine net salary, employers can utilize tools like G2N gross-to-net calculator, highly reliable in the Netherlands,  for more precise calculations tailored to specific situations.

The payroll output provided by G2N includes various components that outline both the employee’s earnings and the corresponding deductions, ensuring compliance with tax regulations and social security contributions. Here’s a breakdown of the key components involved:

• Date of Birth: The employee’s date of birth is important for age-related benefits and deductions, such as pension eligibility, social security contributions, and tax allowances.
• Gross Salary: Gross salary refers to the total earnings an employee receives before any deductions, including base pay, bonuses, allowances, and other compensation.
• Buying Vacation Hours: Employees may have the option to purchase additional vacation hours, allowing them to take more time off than the standard annual entitlement.
• Employee Contributions – Company Car: Employees may contribute towards the cost of a company car, either through payroll deductions or a direct payment, depending on the agreement.
• Gross Payments: Gross payments include all forms of compensation an employee receives before taxes and other deductions, such as salary, bonuses, and any allowances.
• Benefits in Kind: Benefits in kind are non-cash compensations provided by an employer, such as company cars, housing, or meal vouchers, which may have tax implications.
• Company Car (Non-Taxable): A company car provided for business purposes may be considered a non-taxable benefit, meaning the employee is not taxed on its use for work-related activities.
• Cost Reimbursement: Reimbursements are made for work-related expenses, such as travel costs, which are paid back to employees but are generally not subject to taxation.
• Net Payments: Net payments refer to the amount employees take home after all deductions (e.g., tax, insurance, pensions) have been subtracted from their gross salary.
• Employee Deductions: Employee deductions are amounts subtracted from the employee’s gross salary, including taxes, social insurance premiums, and pension contributions.
• Pre-Tax Deductions: These deductions are made before tax is calculated, typically including contributions to pensions, health insurance, and other benefits that reduce taxable income.
• Old Age Pension Contribution (OP): The OP contribution is deducted to fund the state pension scheme (AOW), ensuring that employees are financially supported in retirement.
• Disability Pension Contributions (AP): Employees contribute to disability pension funds (AP) to provide income security if they become unable to work due to illness or injury.
• Company Pension: This is a pension scheme set up by the employer, where both the employer and the employee contribute to a retirement fund for the employee’s future.
• Total Deductions: Total deductions refer to the combined amount of all withholdings, including taxes, pension contributions, insurance premiums, and other legally required deductions.
• Wage Tax: Wage tax is the income tax that is withheld from the employee’s salary, based on tax rates applicable to their income level.
• PAWW Contribution: PAWW (Provision for Unemployment and Disability) contributions are deducted to fund social insurance that supports employees in case of unemployment or disability.
• Net Pay: Net pay is the final amount that the employee receives after all deductions (tax, pension, insurance) are made from their gross salary.
• Employer Contribution: Employer contributions are the amounts an employer is required to pay on behalf of the employee for various benefits, such as pensions, insurance premiums, and other statutory payments.
• Pension Contributions: These are the contributions made to the pension fund, which are typically shared between the employer and the employee to ensure retirement income.
• Old Age Pension Contributions (OP): Employer contributions to the old age pension fund help ensure employees receive a state pension (AOW) upon retirement.
• Disability Pension Contribution (AP): Employers also contribute to disability pension schemes to ensure employees have financial support if they become unable to work due to disability.
• Health Insurance Act (ZVW): Under the Health Insurance Act (ZVW), employers contribute to an employee’s health insurance costs, covering basic healthcare expenses in the Netherlands.
• Aof: The Aof contribution supports the disability fund, which provides financial support for employees who are temporarily or permanently unable to work due to illness or injury.
• WKO: WKO is a surcharge related to the childcare system in the Netherlands, levied as part of the employer’s social insurance obligations.
• Awf: AWF (General Unemployment Fund) contributions are made by the employer to cover unemployment benefits for employees who lose their jobs.
• Whk – ZW Flex: This contribution covers the costs associated with employees on flexible contracts who are temporarily unable to work due to illness under the Work Resumption Fund (ZW Flex).
• Whk – WGA: Whk (Work Resumption Act) contributions are made to provide benefits to employees who are partially incapacitated but can return to work in some capacity.
• Total Employer Contributions: Total employer contributions include all the mandatory payments the employer makes on behalf of the employee, such as pension, insurance premiums, and other social contributions.

Request a Demo

In conclusion, understanding the breakdown of gross to net salary calculations is crucial for employers and employees in the Netherlands to ensure accurate payroll processing and compliance with Dutch tax and social security regulations. By having a clear grasp of the various components, deductions, and employer contributions specific to the Dutch system, you can streamline payroll management and avoid any discrepancies. To make this process even easier, we highly recommend requesting a demo of our G2N gross-to-net calculator, a reliable tool designed to provide precise calculations based on Dutch tax laws and social security contributions. Reach out to us today for a personalized demo tailored to your needs in the Netherlands!

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