WKA details, or in full the Wet Ketenaansprakelijkheid (WKA), are important when several subcontractors work together, for example on a construction site. This law stipulates that main contractors are held liable for unpaid taxes, payroll taxes and social contributions of their subcontractors, thus preventing employees from bearing the brunt of unpaid payroll taxes and contributions. This means that main contractors can also be responsible for compliance with tax obligations by parties lower down the chain. So to speak, the rule therefore applies: whoever outsources work remains responsible for tax compliance throughout the WKA chain.
In this blog, you will discover what exactly WKA data is, its importance and how access control helps manage it.
What is WKA data?
WKA data is designed to give contractors assurance that they are working with reliable subcontractors. This is because under the chain liability rules (Wet Ketenaansprakelijkheid), the main contractor remains responsible for the taxes and contributions of parties lower down the chain. Especially in large projects with multiple subcontractors, the administration can quickly become complex. To keep an overview and avoid fines, a subcontractor or hirer can apply to the tax authorities for a WKA declaration. If there are no outstanding claims, a so-called clean declaration is issued, valid for three months.
The WKA statement and related administrative data are important in the following situations:
Situations involving working with contractors, hirers and project managers.
In assignments with strict compliance requirements.
But what exactly is WKA content? It consists of legally required documents and data to be provided by the main responsible party. When these records are in good order, fines can be avoided. Think of data such as:
Employee identification (name and address details, BSN).
Certificates (CPI certificate, VCA or A1 certificate).
Recording of hours and days worked.
Payroll taxes and contributions paid.
Copies of payroll and time records.
Invoices and proofs of payment from subcontractors.
How access control helps manage WKA data
Access control systems, such as mobile turnstiles [link], barriers [link] or container units [link] with integrated access control, not only play a role in controlling access, but also help record the above personnel data. These registrations make it easier to provide the WKA data correctly and thus fulfil the obligations.
The main benefits of access control for WKA management include real-time personnel registration, insight into subcontractors and interfacing with security systems such as Construction Pass.
Importance of maintaining WKA data
You could describe administration as the most important WKA meaning. This is because correct and up-to-date administration prevents main contractors or principals from being held liable for mistakes made by others in the chain. Carefully documenting WKA information enables timely intervention if it turns out that a subcontractor is not meeting its obligations. This protects your organisation and the people working there.
This applies mainly to sectors where a lot of work is outsourced, logistics parties are hired or temporary workers are active, such as temporary events, distribution centres, or facility services in the healthcare.
Providing WKA data correctly is vital to avoid risks of fines and liability
Chain liability on construction sites and beyond
The construction is the best-known example of where chain liability plays a major role, as many different parties are often involved here.
On construction sites, contractor risk is high due to the amount of ZZP'ers and temporary workers, which makes for a long chain liability and thus a high risk of errors. Proper administration of WKA data is therefore indispensable to avoid legal problems. Keeping conclusive records to keep track of who is working and under what conditions is of great importance.
Is a WKA declaration mandatory?
A WKA is not mandatory, but certainly relevant to have. Especially for large contracts with a long chain liability, a main contractor may ask the subcontractor to issue a WKA declaration.
So what happens if you do not have a WKA declaration or the details are not in order? There is a chance that clients will ignore you because you come across as less reliable. So you may find it harder to get assignments or your reputation as an employer may suffer. It could also lead to financial penalties, a situation you definitely want to avoid.
G-account as additional risk mitigation
The main contractor is liable not only for its own staff, but also for the payroll taxes of the subcontractors it hires. The same applies to all links in the chain. If one link in the chain fails to pay its payroll taxes, every upper link, including the main contractor, can be held liable. Therefore, it is very important that the administration of WKA data is in order and that clear agreements are made about who bears what responsibilities.
This applies to construction sites as well as to other sectors where work is outsourced. Providing WKA data properly is therefore crucial. Contractors can reduce their risks by working with g-accounts, where part of the subcontractor's labour costs are deposited in an escrow account.
Practical tips for submitting WKA data
Structured records are the key to compliance with the law. Therefore, pay attention to the following points:
Check that subcontractors are correctly registered with the Chamber of Commerce.
Ask for and check employees' identity documents.
Use digital tools such as Construction Pass, KYP Project or other project software to keep track of data in an orderly manner.
Make clear agreements on billing and payment to avoid misunderstandings.
Chain Liability Act is not just about rules, but about trust throughout the chain
Control over WKA data through access control from Geran Access Products BV
At Geran Access Products BV, we help companies keep a grip on their WKA obligations through smart access control solutions. Our systems can communicate with virtually any access control system, as long as it issues a potential-free contact. Data from access control systems can be linked to WKA records to make compliance easier.
Want to know how our solutions can support your organisation in managing WKA data?
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