The withholding obligation in the Netherlands

A withholding agent must withhold Dutch wage or salary tax from the employee's salary. This works as a "Pay-As-You-Earn" system, where the taxes are withheld from the (monthly) employee's salary.  

When the employee is covered by Dutch social security, the employer will also be liable to (i) calculate and pay the employer's contributions to the employee's insurance, including the employer's contributions to Dutch health insurance; and (ii) withhold the Dutch national insurance contributions from the employee's salary. 

The wage tax withholdings and social security contributions are done via setting up and running a Dutch payroll. The Dutch tax authorities should ultimately receive the filing and payment of the wage tax and social security on the last day of the month following the month in which the employees' salary was paid.