A common question is whether someone can have employees with ZZP. A freelancer, ZZP (an abbreviation for "Zelfstandig Zonder Personeel," which means "self-employed without staff"), essentially means the same thing; the only change in status is that they are no longer working alone but have employees. After this, the company form is "Zelfstandig Ondernemer, Eenmanszaak" (Self-employed Entrepreneur, Sole Proprietorship).
Another frequent question is whether it is more advantageous to hire an employee or work with a subcontractor. It is safer for the entrepreneur to work with an employee because the employer withholds taxes and contributions from their monthly salary and is required to pay the pension every month. If the employer provides the employee with accommodation, payroll, and work clothes, these can all be accounted for as expenses.
The subcontractor is responsible for paying their own taxes and contributions, but if they fall behind and accumulate tax debts, the tax authorities in the Netherlands can hold the main contractor accountable for this. Therefore, it is important to obtain a zero tax certificate for the past three months when dealing with a subcontractor.
From 2020, the tax authorities require that freelancers cannot invoice more than 70% of their annual income to a single main contractor. It is important for you to pay attention to this rule and ensure that your subcontractor also complies. In case of a tax audit, you don't want the subcontractor to be retrospectively reclassified as an employee by a tax authority decision.
A subcontractor can, of course, be a foreign-based freelancer or a company with employees. In such cases, many regulations must be followed, from obtaining an A1 form to registering in the Netherlands, but I will write about this in more detail another time.