Algorithm Self-insurance WGA

Dutch Tax and Customs Administration

This page contains information about the algorithm 'WGA self-insurance'. The algorithm supports employees of the Tax and Customs Administration in monitoring the correct registration of WGA self-insurance with the Tax and Customs Administration and insurance company.

Last change on 30th of October 2025, at 15:44 (CET) | Publication Standard 1.0

• Publication category: Impactful algorithms
• Impact assessment: Field not filled in.
• Status: In use

General information

Theme

Public finance

Begin date

Field not filled in.

Contact information

[e-mail]

Link to publication website

https://over-ons.belastingdienst.nl/onderwerpen/omgaan-met-gegevens/algoritmeregister/

Link to source registration

https://over-ons.belastingdienst.nl/onderwerpen/omgaan-met-gegevens/algoritmeregister/eigenrisicodragerschap-wga/

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-related Healthcare Insurance Act contribution are not deducted from the employee's wage, but are paid by the employer to the Tax Administration.

An employer can choose to act as self-insurer for the Work resumption of partial disability (WGA). The employer then bears the risk itself for the payments of WGA benefits to beneficiaries and death benefits to surviving relatives. A description of this matter is published on the "Belastingdienst" site in the Payroll Taxes Handbook. https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/themaoverstijgend/brochures_en_publicaties/handboek-loonheffingen

To become self-insurer of the WGA, the employer must meet certain conditions. The employer submits an application to the Tax and Customs Administration and must provide a guarantee declaration. This guarantee declaration is issued by an insurance company, the guarantor. If the employer meets the conditions of the WGA self-insurance scheme, the Tax and Customs Administration will issue a decision on self-insurance.

The details of self-insurance are registered by the Tax Administration. This registration is linked to the UWV's policy administration. The Tax and Customs Administration's registered self-insurers must be the same as the insurance companies' registered self-insurers (guarantors). The Tax and Customs Administration therefore periodically makes a file comparison with the insurance companies.

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Considerations

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The insurance company reports known excess WGA carriers to the Tax Office. The algorithm establishes a link with the registration with the Tax Office by means of name and specified tax number. If the excess WGA carrier reported by the insurance company is known to the Tax Office as an excess WGA carrier, this is reported back to the insurance company.

In case the name of the WGA self-insured carrier provided by insurance companies differs from the registration with the Tax Office, the insurance company will have to adjust the name in the administration. This avoids potential problems in the event of any recourse against the guarantor by the UWV.

An employer can also switch to a different insurance company (guarantor) during the WGA self-insurance scheme without needing permission from the Tax and Customs Administration. The new guarantor will issue a guarantee statement and the old guarantor will withdraw the guarantee statement.

WGA self-insurance may end in the following situations: at the employer's request, withdrawal of the guarantee declaration by the insurance company in the case of WGA self-insurance, end of employment, bankruptcy or debt restructuring.

If an employer is not (or no longer) an own-risk-bearer of the WGA, the Tax and Customs Administration does not link anything back to the insurance company.

Based on the clues from the algorithm, the handler can assess the signal. It is the Tax Administration's handler who ultimately determines whether the file comparison contains inaccuracies. As a result of the file comparison, the Tax Administration and the insurance company are in contact with each other about any inaccuracies.

• Benefits of using algorithm

It is important for the employer, insurance company, Tax Administration and UWV to achieve correct administrative processing. The algorithm can support a Tax Administration employee in this. We want to do the assessment carefully, more efficiently and uniformly.

Human intervention

Human intervention in the Tax Administration context implies that a competent and knowledgeable employee plays a substantial role in decision-making.

Human intervention is always involved in the operation of the algorithm. It is the Tax Administration employee who makes the decision on whether to contact the employer.

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.

It is reviewed and adjusted as necessary to remain compliant with laws and regulations.

Legal basis

1. General State Tax Act:
2. General Administrative Law Act:
3. General Data Protection Regulation:
4. General Data Protection Regulation Implementation Act:
5. Payroll Tax Act 1964:
6. Social Insurance (Funding) Act:
7. General provisions Citizen Service Number Act:
8. Archives Act 1995:
9. Work and Income according to Labour Capacity Act (WIA).
10. Government Personnel on Employment Insurance Act
11. Social Insurance (Funding) Act Regulation
12. Financial Supervision Act

Links to legal bases

• General State Tax Act:: https://wetten.overheid.nl/BWBR0002320/
• 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
• General Data Protection Regulation Implementation Act:: https://wetten.overheid.nl/BWBR0040940/
• Payroll Tax Act 1964:: https://wetten.overheid.nl/BWBR0002471/
• Social Insurance Financing Act:: https://wetten.overheid.nl/BWBR0017745/
• General provisions Citizen Service Number Act:: https://wetten.overheid.nl/BWBR0022428/
• Archives Act 1995:: https://wetten.overheid.nl/BWBR0007376/
• Work and Income according to Labour Capacity Act (WIA): https://wetten.overheid.nl/BWBR0019057/
• Public Employees Insurance Act: https://wetten.overheid.nl/BWBR0009267/
• Social Insurance (Funding) Act Regulations: https://wetten.overheid.nl/BWBR0019150/
• Financial Supervision Act: https://wetten.overheid.nl/BWBR0020368/

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

The own-risk-bearing 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

1. Identifying data (LH number, tax number)
2. Payroll tax details
3. Identifying data (e.g. name, WGA self-insurance)

Links to data sources

• Identifying data (LH number, tax number): Belastingdienst
• Relationship data Payroll taxes: Belastingdienst
• Identifying data (e.g. name, excess liability for WGA): Verzekeringsmaatschappij

Technical design

The algorithm consists of selection rules created by content experts based on laws, regulations and expertise, namely file comparison.

The algorithm is not self-learning. That means it does not evolve as it is used.

External provider

The algorithm was developed by Tax Administration staff and is also maintained internally.