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 calculate and pay the employer's contributions to the employee's insurance, including the employer's contributions to Dutch health insurance, and withhold the Dutch national insurance contributions from the employee's salary. 

The wage tax withholdings and social security contributions are done via processing a Dutch payroll. The Dutch tax authorities should ultimately receive the wage tax and social security on the last day of the payroll month.