Payments to creditor’s G-account

In the context of the Dutch 'Wet Ketenaansprakelijkheid', as the client you may sometimes be responsible for the payment of premiums. This is why you transfer a portion of the amount owed to the creditor's 'G'-account and another portion directly to the creditor. A G-account is a blocked account of a creditor.

Description

In certain business sectors it is customary to work with subcontractors who in turn hire their own subcontractors. This creates a work subcontracting chain in which the client is responsible for the subcontractors’ wage taxes/social security premiums, employee insurance premiums and the turnover taxes. This may include subcontractor, recipient and client liability.

In case of subcontractor liability you must split up the invoice amounts your creditor charges you into two payments:

• You deposit one amount (for wage taxes/social security premiums, employee insurance premiums and the turnover tax) to the creditor’s G-account. This amount is set aside for the tax authority and the creditor does not have access to this amount.
• The remainder of the invoice amount is deposited into the regular bank account number of your creditor.

Preparation

• Configure a G-account

Procedure

• Add a G-account for a creditor
• Enter an invoice amount on a G-account
• Automatic payments to a G-account