Do you really understand Payroll?

Date:2020-12-07 19:14


Personal information

Normally, at the top of the payroll, the employee's personal information will be listed in detail. You can see your name, date of birth, home address, etc. These specific informations will be shown in the first part:

 - Periode: the relevant period for salary calculation (week or month)

 - Personeelsnummer: Employee number. The management department will set the employee number for each employee according to the contract.

 - Afdeling: the name of the employee's working department

 - Salaris / uurloon: pre-tax salary

 - Bitz tarief / heffingskorting (ja): tax rate in percentage / general tax credit

 - Verzekerd voor WW, WiA, ZW, Zvw: Social Security Coverage

 - dienst data: date of starting the employment 

 - BSN: Dutch Social Security Number

 - Functieomschrijving: job description


Salary details

The second part of the payroll is the main part of “Understanding how wages are issued”. It contains a breakdown of the various taxes and fees. First, let’s look at the taxes and subsidies to be paid in this part:

 - Omschrijving: Description

 - Gewerkt uren: working hours

 - Brutoloon: total pre-tax salary and other deductions

 - Loonheffing: Advance tax and social security contributions

 - Sociale verzekeringen (SV): Social Insurance

 - Reiskostenvergoeding: transportation subsidies

 - Nettoloon: After-tax wages (exclude all taxes and other deductions). This amount will be listed at the bottom of the payroll and will be the final payment amount to the employee's bank account.


extra information

The third part deals with supplementary notes on holidays and working hours, as follows:

 - (Opgebouwd) vakantiegeld: (cumulative) holidays (in hours), such as how many days have been used, how many days remain

 - Dagen: Records the accumulated sick leave, vacations and workdays of employees during the year

 - 13e maand: Double pay bonus at the end of the year


Social insurance on the payroll

In the first part and second part above, the social insurance (sociale verzekeringen) appeared. So what is the name of WW and ZW on the payroll? Let’s look at the social insurance covered by your work through the payroll.

These names represent different types of social insurance covered for employees, including:

 - AOW (Algemene Ouderdomswet) / OP-premie: pension

 - AP-premie: Disability pension

 - ANW (Algemene nabestaan denwet): benefits for women who lose their spouses 

 - AWBZ: Special medical needs

 - WAO / WiA: Benefits due to illness

 - WW (Werkloosheidswet): Unemployment benefits

 - ZW / Zvw (Zorgverzekeringswet): paid sick leave

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