Please note: The algorithm descriptions in English have been automatically translated. Errors may have been introduced in this process. For the original descriptions, go to the Dutch version of the Algorithm Register.
Premium differentiation Unemployment Act (PDWW)
- Publication category
- Impactful algorithms
- Impact assessment
- Field not filled in.
- Status
- In use
General information
Theme
Begin date
Contact information
Link to publication website
Link to source registration
Responsible use
Goal and impact
The Tax Authority checks withholding agents for correct and complete declaration and payment of payroll taxes. Payroll taxes consist of wage tax, national insurance contributions, employee insurance contributions and the income-related Healthcare Insurance Act contribution. Withholding agents (such as an employer, pension fund or benefits agency) withhold wage tax and national insurance contributions from their employee's wages and, in some cases, the income-related Healthcare Insurance Act contribution. They remit this to the Tax Office. The employee insurance contributions and usually the income-dependent Healthcare Insurance Act contribution are not deducted from the employee's wage, but are paid by the employer to the Tax Administration.
The premium for the General Unemployment Fund (AWf) has a differentiation according to the nature of the employment contract. By this we mean that premium depends on the employment contract. The employer pays the low AWf premium for a written permanent employment contract that is not an on-call contract. For most other employment contracts, the employer pays the high premium AWf.
If the employer was right to apply the low AWf premium, he must still pay the high AWf premium retroactively in two cases:
- The employment contract ends no later than 2 months after commencement.
- The employee has more than 30% extra paid hours in a calendar year, over and above the hours agreed in the employment contract.
The purpose of the algorithm is to check whether employers have revised correctly.
Considerations
The Premium Differentiation Unemployment Act algorithm is important for correct remittance of the AWf premium. We want to do this carefully. The algorithm can support an employee of the Tax Administration in this. As a result, the assessment is more careful, efficient and uniform.
Human intervention
The operation of the algorithm always involves human intervention. The algorithm detects and selects. It is the Tax Administration employee who makes the decision.
Risk management
The General Administrative Law Act (Awb) requires the government's actions to be transparent and lawful. The Tax Administration observes the general principles of good governance when applying and developing algorithms.
The algorithm uses data collected under various tax laws. As required by the AVG, no more data is used than necessary.
The selection rules are reviewed periodically and adjusted if necessary to remain compliant with laws and regulations.
Legal basis
- General Administrative Law Act:
- General Data Protection Regulation:
- Archives Act 1995:
- General Administrative Law Act:
- General State Tax Act:
- General Data Protection Regulation Implementation Act
- Labour Market in Balance Act
- Social Insurance (Funding) Act
Links to legal bases
- General Administrative Law Act:: https://wetten.overheid.nl/BWBR0005537/
- General Data Protection Regulation:: https://eur-lex.europa.eu/legal-content/NL/TXT/HTML/?uri=CELEX:32016R0679
- Archives Act 1995:: https://wetten.overheid.nl/BWBR0007376/
- General Administrative Law Act:: https://wetten.overheid.nl/BWBR0005537/
- General State Tax Act:: https://wetten.overheid.nl/BWBR0002320/
- General Data Protection Regulation Implementation Act: https://wetten.overheid.nl/BWBR0040940/
- Labour Market in Balance Act: https://wetten.overheid.nl/BWBR0042307/
- Social Insurance (Funding) Act: https://wetten.overheid.nl/BWBR0017745/
Elaboration on impact assessments
- Privacy and AVG
The use of data is tested against the General Data Protection Regulation (AVG). Reviewing personal data reveals any privacy risks and allows appropriate measures to be taken.
The AVG prescribes that no more data should be used than necessary. This is called data minimisation. The Tax Administration regularly examines whether the data used are still necessary and may therefore be used.
- Use of special personal data
This algorithm does not use special personal data.
- Equality and non-discrimination
The algorithm is assessed in line with applicable non-discrimination principles for direct and indirect discrimination. Processing as little personal data as possible reduces the risk of direct discrimination. Employees involved in developing and managing the algorithms receive training on data protection and bias.
Operations
Data
- Identifying data (BSN, date of birth)
- AWf data
- Employment-related data
- Contractual data
Links to data sources
- Identifying data (BSN, date of birth): Belastingdienst/UWV
- AWf data: Belastingdienst/UWV
- Labour-related data: Belastingdienst/UWV
- Contractual data: Belastingdienst/UWV
Technical design
The algorithm consists of selection rules drawn up by content experts based on laws, regulations and expertise.
If the revision has not been applied (correctly), the withholding agent is notified. If necessary, a correction obligation can be imposed.
The algorithm is not self-learning. This means that the algorithm does not develop itself during its use.
External provider
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