IKV
The IKV plays a crucial role in our social security system. Through payroll tax returns, employers send (wage) data about employees to the Tax Authorities. The Tax Authorities forward this data to the UWV, which records it in the policy administration. Many organizations use this data to carry out their legal tasks. For example, when calculating benefits or for pre-filling the income tax return, which many Dutch people use when filing their annual income tax.
Need for IKV Improvement
The IKV had no clear definition in laws and regulations, causing uncertainty about the correct way to submit the IKV. This led to large differences in how employers report data. As a result, the quality of data in the policy administration was under pressure. This is detrimental to data reliability. Therefore, the cabinet presented a proposal in 2021 on how companies should submit data per IKV.
Less Administrative Burden
However, discussions with employers showed that this proposal was poorly feasible and would lead to too much administrative burden. Therefore, the cabinet now presents an improvement to the proposal. In this adjustment, employers must include directly consecutive contracts in one IKV instead of creating a new IKV for each contract. This aligns better with daily practice and employers experience.
The intended effective date is January 1, 2028. An important condition is that the law is timely adopted by the House of Representatives and the Senate. Implementing organizations and employers need sufficient time to prepare.