Companies that make use of the services or the employees of third parties must take account of the risks of chain liability and user liability.
The risk arises if the wage taxes (and the VAT, where applicable) for the employed personnel remain unpaid. This is often an issue in bankruptcy cases. In that case, the client can be held liable for the unpaid amounts.
Risk groups and sectors
The risk arises on contracting of work and hiring of temporary personnel, which frequently occurs in certain sectors such as construction, ICT and the metals and mechanical engineering sector. More specifically, this involves the following categories of service providers:
- contractors and subcontractors;
- temporary employment agencies and secondment companies;
- self-employed persons with no employees (ZZPs) and freelancers;
Foreign companies and companies that work with foreign employees merit special attention. This is because matters such as the following are also at issue here:
- illegal employment of non-EU employees, employment permits and/or residence permits;
- deduction obligation, 183 days regulation and increased risk of application of the ‘anonymous tax rate’ (if all the employee’s details are not available within the set term);
- notification of the UWV Werkbedrijf (the former Centre for Work and Income, CWI) via a notification form or A1 form;
- incorrect application of temporary employee remuneration and collective labour agreements (CAOs);
Notice of liability and preventive measures
Obviously, the client can take measures to limit liability or even exclude it entirely. Information and administration play an important role here, as does the relationship with your subcontractors and temporary employment agencies. Important matters include:
- correct identification of employees and control of the necessary papers;
- keeping accurate project administration (shadow administration);
- indemnifying deposits into the blocked G-account or direct deposits with the tax authorities.
Exterus can assist you in taking the necessary measures and in identifying the potential risks. Exterus can also support you in the event of any notice of liability from the tax authorities.