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.
Workflow control employee data
- 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 Inland Revenue monitors the correct and complete declaration and remittance of payroll taxes.
The algorithms 'BSN date of birth differences', 'Not Recovered Well Recovered (NHWT)' and 'Sector differences' are used in the workflow 'Check employee data'. These algorithms help Inland Revenue employees monitor the correct and complete withholding and remittance of payroll taxes and the correct and timely submission of employee data in the payroll tax return.
Payroll taxes are taxes and contributions that withholding agents (such as employer, pension fund or benefits agency) withhold from (wage tax and national insurance contributions) and pay on (employee insurance contributions and income-dependent healthcare insurance contributions) their employees' wages.
In addition, the Tax Authority monitors the accuracy of the employee data from the wage tax return. Withholding agents periodically submit the wage tax return to the Tax and Customs Administration. The UWV and the Tax and Customs Administration check for anomalous data. The Tax and Customs Administration periodically reports back to withholding agents any errors found in the employee data received from the wage tax returns. The withholding agents are requested to rectify the observed inaccuracies per return period.
A description of this process is published on the "Wage declaration chain" site. (https://www.loonaangifteketen.nl/)
A description of these error reports and a description and explanation of each error possibly contained therein is published on the Tax and Customs Administration's site under "Payroll taxes" and then "Explanation of error reports employee data". (https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/themaoverstijgend/brochures_en_publicaties/toelichting-foutmeldingen-werknemersgegevens-aangifte-loonheffingen)
Following this process, the Tax and Customs Administration proceeds to monitoring to see how and whether the inaccuracies have been rectified by withholding agents. The following three algorithms are used for this purpose:
Considerations
- Not Recovered Well Feedback (NHWT).
The NHWT algorithm is designed to detect employers who repeatedly make errors in employee data.
The algorithm leads to surveillance of a limited group of withholding agents of large enterprises that mostly make the same errors in returns. This group accounts for half of the repeat errors.
Based on the indications from the algorithm, the handler can request in writing the correction or approach the withholding agent by phone to take measures to reduce the number of errors in the returns.
This algorithm looks at various errors in employee data. The following two algorithms check a specific error message:
- BSN birth date differences
The BSN birth date differences algorithm is designed to detect withholding agents with repeated incorrect application of the BSN data.
Based on the indications from the algorithm, the handler can contact the withholding agent to expedite the correction of the identified BSN-related errors in payroll tax returns. This involves adjustments to the BSN declared or BSN birth date differences.
- Sector differences
The Sector Differences algorithm is designed to detect withholding agents who employ employees in the event of an incorrect application of the sector code in a number of consecutive payroll tax returns. For employee insurance purposes, the business and professional sector is divided into a number of sectors. Each sector consists of one or more business or professional sectors or parts thereof. A withholding agent is compulsorily affiliated to one of the sectors. Which sector it belongs to depends on its social function and/or the nature of its activities. The starting point is that withholding agents with the same activities are affiliated with the same sector. The sector is important because the sector affiliation determines the amount of the WGA and ZW premium to be paid. The correct data is also important for the hundreds of buyers of wage declaration data.
Based on the indications from the algorithm, the handler can contact employers who, after a number of written correction requests to correct the indicated sector, have still not made a change.
Human intervention
Monitoring employee data is important for citizens, companies and users of the policy administration alike. The policy administration contains employee data from wage declarations. We want to do the monitoring carefully. Algorithms can support a Tax Administration employee in this. As a result, the assessment is more careful, efficient and uniform.
The algorithms mentioned above support the supervision of withholding agents on the correct application of employee data in the payroll tax return.
The algorithms contribute to the systematic and accurate checking of employee data in the wage tax return. By deploying algorithms, data can be checked faster.
Human intervention in the context of the Inland Revenue means that a competent and knowledgeable employee plays a substantial role in the decision-making process.
The operation of the algorithms described above always involves human intervention. The algorithms detect and select. It is the Tax Administration employee who then contacts the withholding agent by telephone to request, possibly after a substantive assessment, that the detected inaccuracies be corrected in the next return.
Risk management
The use of data is assessed against the General Data Protection Regulation (AVG). Testing 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 Authority regularly examines whether the data used are still necessary and may therefore be used.
Special personal data is not used in the aforementioned algorithms.
The selection rules in the algorithms are tested against non-discrimination legislation. 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.
The selection rules are reviewed periodically and adjusted if necessary to remain compliant with laws and regulations.
The General Administrative Law Act (Awb) requires government actions to be transparent and lawful. The Tax and Customs Administration observes the general principles of good governance when applying and developing algorithms.
Legal basis
- General State Tax Act
- General provisions Citizen Service Number Act
- Archives Act 1995
- General Administrative Law Act
- General Data Protection Regulation
- General Data Protection Regulation (Implementation) Act
- Payroll Tax Act 1964
- Regulations on data requests for wage tax returns
Links to legal bases
- Algemene wet inzake rijksbelastingen : https://wetten.overheid.nl/jci1.3:c:BWBR0002320&z=2023-01-01&g=2023-01-01
- Wet algemene bepalingen Burgerservicenummer : https://wetten.overheid.nl/jci1.3:c:BWBR0022428&z=2018-07-28&g=2018-07-28
- Archiefwet 1995: https://wetten.overheid.nl/jci1.3:c:BWBR0007376&z=2022-05-01&g=2022-05-01
- Algemene wet bestuursrecht: https://wetten.overheid.nl/BWBR0005537/
- Algemene verordening gegevensbescherming: https://eur-lex.europa.eu/legal-content/NL/TXT/HTML/?uri=CELEX:32016R0679
- Uitvoeringswet algemene verordening gegevensbescherming: https://wetten.overheid.nl/BWBR0040940/
- Wet op de Loonbelasting 1964: https://wetten.overheid.nl/BWBR0002471/
- Regeling gegevensuitvraag loonaangifte: https://wetten.overheid.nl/BWBR0031386/
Operations
Data
- Identifying data (including BSN)
- Identifying company data (including tax number)
- Payroll tax return data
Links to data sources
- Identificerende gegevens: Basisregistratie Personen (BRP)
- Identificerende bedrijfsgegevens: Kamer van Koophandel
- Aangiftegegevens Loonheffingen: Belastingdienst
Technical design
The algorithms consist of selection rules created by content experts based on laws, regulations and expertise.
The algorithms are not self-learning. This means that they do not develop themselves during their use.
External provider
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