Benchmarking. Mandatory reporting in Europe NETHERLANDS

Transcription

1 Documentary And Information Support for System Governance and Qualification Benchmarking Mandatory reporting in Europe NETHERLANDS 1

2 Index 1. SYSTEM REQUIREMENTS AND SPECIFICATIONS OBLIGATIONS OF EMPLOYERS DATA ON MOVEMENT IN AND OUT OF THE WORKFORCE ADMINISTRATIVE DATA PROCESSING References and sitography 16 - Appendix A 17 - Appendix B 18 - Appendix C 19 2

3 1. SYSTEM REQUIREMENTS AND SPECIFICATIONS In Italy, public and private employers must provide Mandatory Reports (Comunicazioni Obbligatorie - CO) when hiring, extending, altering or terminating employment. Thanks to the new computer system, through the compilation of a single model, companies are able to communicate the necessary information to various agencies (employment centres, INPS, Inail and the Ministry of Labour). The system simplifies administrative procedures and reduces the economic costs for businesses; makes the service more transparent; allows the integration of data from the various entities involved with uniform data by defining information and statistical standards; and speeds the flow of information. A brief presentation and introduction to the Italian system of Mandatory Reports can be found at The mandatory reporting system - as configured in Italy - is not found in the Netherlands. When hiring, extending, altering or terminating employment, Dutch companies have a single source: Tax and Customs Administration (Belastingdienst) The communication between companies and the Dutch Tax and Customs Administration, which is comprised of information on the movements of the workforce (hiring, extending, altering or terminating employment), concerns periodic statements on the amount of taxes and contributions paid for each worker, which companies are required to submit. In all reporting, both workers and companies are uniquely identified by a "social security number" (similar to the Italian codice fiscale). 2. OBLIGATIONS OF EMPLOYERS A. Available information The Dutch Ministry of Economy website is responsible for providing detailed guides to companies wishing to recruit staff. These guides can be downloaded online and are available in both English (for foreign companies operating in the Netherlands) and Dutch. The site is 3

4 The site provides specific information regarding: hiring, firing and managing staff; regulations relating to contracts; regulations on the management of disability and sick leave; laws on working conditions; procedures for personnel management. There are also "step-by-step" guides available for the recruitment of staff (temporary or not). These guides contain information on: procedures to be followed; taxes and fees to be paid; subsidies (if any) that companies may request; useful links and contact information for the Administration and personnel management services. Page for personnel management ( 4

5 B. Personnel management procedures The rules and procedures for personnel management apply equally to all sectors. A company preparing to hire staff for the first time must register with the Tax and Customs Administration as an employer. Upon registration the company is assigned a payroll tax number. This number uniquely identifies the company as an employer and must be used for all communications with the Tax and Customs Administration relating to personnel management. Moreover, the Administration will provide all documentation necessary to the company for the creation of a payroll system. When hiring, the company must verify and record the identity of and some information about the employee: surname and initials; address, post code and place of residence; date of birth; Social Insurance Number (BSN or Sofinummer). This "number" (similar to the Italian codice fiscale) uniquely identifies the employee at various administrations. In the case of foreign workers, companies should make sure they are in possession of a valid work permit. Once all the necessary information has been gathered, the company must create a payroll record for each employee and all wages, taxes and fees to be paid should be calculated. Every three months the company must complete a return stating the amounts due for taxes and employee contributions, and pay any related amounts to the tax authorities. If the company takes on temporary workers by using a temporary employment agency, it is not liable for the payment of taxes and fees. These must be paid by the agency that provides the worker. However, in order to protect themselves from temporary agency non-compliance, companies may request the creation of a bank account that can be used only for the payment of taxes and contributions (G-account). If the company wants to proceed with the dismissal of an employee under a permanent contract, it should contact the Job Centre (UWV WERKbedreijf) to seek approval of the dismissal. If the Job Centre does not grant permission for the dismissal, the employer may apply to the court. C. Communication channels and formats Registration with the Tax and Customs Administration must be in writing and sent by post. Once the registration is formalised, the Administration sends to the company, again by post, a package containing: payroll tax number; forms necessary for administrative practices relating to personnel management; a manual containing all the information necessary for the proper management of payroll records (Handboek Loonheffingen). 5

6 The collection of data relating to the employee is made by completing a specific form ("Model opgaaf gegevens loonheffingen") that the Tax and Customs Administration has provided at registration (downloadable from the Administration website and at An example of the form is shown in Appendix A. Page on the management of payroll records ( Calculation of payroll taxes online ( 6

7 In the management of payroll records, the employer must create a wage statement for each employee. The wage statement, which is available online (an example is shown in Appendix B), is composed of two parts: the first part contains information about the company, the employee and the payroll tax number; the second part shows in detail the various components of the wage: gross salary, deductions, taxes, contributions, net pay, etc. Every three months, the company is required to complete a tax return electronically and pay any taxes owed. The declaration by electronic means may be arranged in three different ways: directly on the site of the Tax and Customs Administration ( through software downloaded from the website (access restricted to registered users) Through an accountant s office. The tax return is composed of two parts: the first part contains the taxes and fees for each worker; the second part contains the total amounts that the company will pay. The Tax and Customs Administration makes all the information for employers available on its website, including forms, manuals, programmes for the calculation of payroll taxes, and contact information for the offices of reference. D. Accessibility and information gathering Payroll record information is collected and managed by the Tax and Customs Administration. The Tax and Customs Administration forwards the information contained in the first part of the tax returns, relative to workers, to the Job Centre (UWV WERKbedreijf). Such information is used for control purposes, the implementation of employment policies and the determination of public benefits to which every individual is entitled. The service is transparent, easily accessible, and supported by detailed information provided by the administration. The key features of the system are: most operations can be done electronically the company has a single point of contact companies and workers are uniquely identified through the payroll tax number and the sofinummer. 7

8 3. DATA ON MOVEMENT IN AND OUT OF THE WORKFORCE A. Collection, standardisation and dissemination of administrative data The acquisition of administrative data on the labour market is primarily via two subjects/channels: Tax and Customs Administration (Belastingdienst). collects information from tax returns relating to the working lives of individuals, businesses that employ staff, and the income received by the entire Dutch population. Job Centre (UWV WERKbedreijf). Collects information concerning the flow of unemployed, the provision of public benefits and the number of redundancies. Data are standardised by Statistic Netherland (CBS). CBS has exclusive access to the archives of various administrative entities and is the only facility authorised to treat and standardise administrative data. The distribution of the data is operated by CBS, for a fee, based on strict research protocols and subject to strict data protection procedures. Data access is tightly regulated and is possible only through the servers of Statistic Netherland, through password and fingerprint recognition. Transformation process from administrative statistical data to information on the labour market in the Netherlands 8

9 As part of the standardisation process, CBS has reorganised administrative data on the labour market into a single dataset called the Social Statistical Database (SSB). The existence of unique identifiers for individuals and businesses (payroll tax number and sofinummer) has allowed the integration of administrative datasets from different sources. The Social Statistical Database brings together three main from administrative records collected by: Tax and Customs Administration UWV WERKbedreijf Population Register (GBA): contains information gathered from the city registry office (marital status, births, deaths, immigration, etc.). Administrative data contained in the SSB are supplemented with survey data, such as those collected through in the Dutch Survey on Employment and Wages (EWL). BOX 1 STRUCTURE OF SOCIAL STATISTICAL DATABASE (SSB) A. STRUCTURE The SSB is composed of a series of data sets: - SSB ABW: social pensions - SSB AO: disability pensions and disability benefits - SSB ARBBUIT: migrant workers - SSB BANEN: careers and salaries - SSB IOAWZ: disability pensions and disability benefits for particular categories - SSB OARB: more data on the labour market - SSB OUITK: other types of benefits - SSB UITKBUIT: pensions paid abroad - WW SSB: unemployment - SSB Zelfst: self-employed B. INFORMATION AVAILABLE The information available on the Social Statistics Database can be summarised into 3 categories: - demographic information - working lives 4. ADMINISTRATIVE DATA PROCESSING The main users of the administrative data contained in the Social Statistical Database are: Statistic Netherland; Centraal Planbureau (CPB); 9

10 Universities. In particular, Statistic Netherland uses administrative data to create StateLine (an online from which users can build custom data tables), for the regular production of indicators of the labour market, and for studies and scientific publications. The information and data created are spread across three types of periodical publications by CBS on the labour market: press releases on the progress of key indicators, series of working papers online publications (web magazine, economic monitors and industrial monitors). Appendix C shows an example of a press release. The CPB - Research Centre for Economic Policy Analysis, under the Ministry of Economy, uses the administrative data distributed by Statistic Netherland for: micro-simulation programmes (an example is "Micro-tax", a programme that transforms gross income to net and simulates the effects of fiscal policies; projections on employment and unemployment; studies and publications. StateLine portal on the labour market ( 10

11 Example of a web magazine ( Economic monitor ( 11

12 REFERENCES AND SITOGRAPHY Here are some important web addresses where you can find useful information for the contents addressed in this report. Also included are a few publications with content that is relevant and of interest to the topic covered in the report. Websites Publications and Manuals - Grazia Strano, Employment status management through the CO eservice, - Personnel Management Manual provided by the Tax and Customs Administration (Handboek Loonheffingen), available in - Jan van de Brakel, Sabine Krieg: Estimation of monthly unemployment figures in a rotating panel; on the use of auxiliary series in structural time series model, CBS Discussion Paper no , Frank Corvers, Rob Euwals, Andries de Grip: Labour Market Flexibility in the Netherlands. The Role of contracts and self-employment, CPB Book 1, Commission of the European Communities, Communication from the Commision to the European Parliament and the Council. On the production method of EU statistics: a vision for next decade, COM(2009)404final, Brussels

13 APPENDIX A 13

14 APPENDIX B 14

15 APPENDIX C 15