For the purposes of the Sickness Benefits Act (Ziektewet; "ZW") an employer can elect to bear its own risk. This means that the employer bears the risk for incapacitated ex-employees who are entitled to a sickness benefit, or that he insures this risk in full or in part through a private insurance company. As an own risk bearer for the purposes of the ZW, the employer is liable for lower ‘sector insurance premiums’ (sectorpremie), or lower contributions to the Public Sector Social Security Implementation Fund (Uitvoeringsfonds voor de overheid; "UFO contribution").
To be considered an own risk bearer for the purposes of the ZW, the employer must file a request with the Dutch Revenue. The Dutch Revenue will issue a decision on the request. It appears that, in practice, employers indicate in their payroll administration that they are an own risk bearer − thereby applying a lower percentage for their contributions − without having received a decision on their own risk bearer status from the Dutch Revenue. This is incorrect. This misunderstanding may be the result of the statutory obligation to continue to pay an employee's salary for two years in the event of illness. However, this is not the same as an own risk bearer status!
It has been brought to our attention that, because of this misunderstanding, the Dutch Revenue is carrying out more thorough checks. This can result in considerable adjustments and additional assessments, including penalties, in those cases where mistakes have been identified. Therefore please check to see if you have received a decision on your status from the Dutch Revenue.