You want to hire an IT freelancer, but which construction do you choose: intermediation or an intermediary employer setup? And what is the actual difference for your risk and cost?
In this article I compare both constructions honestly. You will learn how they work, what they cost, what Dutch DBA Act risk comes with each, and when each one fits. By the end, you will know which choice suits your situation.
This blog is for clients: IT managers and hiring managers who want to hire a freelancer and are unsure about the right form.
An honest note up front: Maedium offers both constructions, and we earn from both. With the intermediary construction, my fee is a little higher than with intermediation. Even so, I do not automatically recommend the pricier one. Below you will read exactly when the lighter option is perfectly fine.
What is the difference between the intermediary construction and intermediation?
With intermediation, the freelancer works directly for you and invoices you directly. I make the match and only charge my fee. With the intermediary construction, Maedium sits contractually in between: you contract Maedium, and Maedium contracts the freelancer. In both cases, the IT professional stays an independent entrepreneur.
How does intermediation work?
I find the right freelancer and match them to you. You sign an agreement with the freelancer yourself, and the freelancer invoices you directly. I only charge my intermediation fee. In the background, I keep an eye on things, replace where needed, keep the calm, and safeguard DBA compliance through the right contract structure.
How does the intermediary construction work?
Here, I sit between you and the freelancer. You contract Maedium, I contract the freelancer. You pay me, I pay the freelancer. The freelancer stays an independent entrepreneur; I do not become an employer and pay no payroll tax. The difference with intermediation: with this construction, I take on the risk, safeguarded through my model agreement and contract structure.
What does the intermediary construction cost versus intermediation?
Intermediation is priced lighter: you pay the freelancer's rate, plus my intermediation fee of around 10 percent. With the intermediary construction, I charge a fee of around 15 percent, because I sit contractually in between, handle the invoicing and carry the risk. In both cases, the freelancer stays independent.
A simplified calculation for the intermediary construction:
- Freelancer's hourly rate: €80/hour
- Maedium fee (around 15%): around €12/hour
- Invoice rate to you: around €92/hour
With intermediation, the freelancer invoices their €80 directly to you, and you see my fee of around 10 percent separately. Those few extra percent with the intermediary construction buy you one thing: I take the risk and the hassle off your hands. No search, no contract puzzle, no worry about compliance.
What Dutch DBA Act risk comes with each construction?
With intermediation, the assessment of the working relationship primarily concerns you as the client, because you contract the freelancer directly. With the intermediary construction, Maedium sits in between and I take on that risk, safeguarded through my contracts. In both cases: there must be no authority relationship or embedding, because that signals disguised employment.
The Tax Authority assesses three points among others: is there an authority relationship, must the freelancer do the work personally, and are they embedded in your organisation? The more an assignment resembles permanent employment, the greater the risk under intermediation.
Want the full picture of the DBA Act and the assessment criteria? Read our guide to the 9 assessment factors of the Dutch DBA Act.
When do you choose intermediation, and when the intermediary construction?
Choose intermediation for a short, result-oriented project where the freelancer demonstrably works independently. Choose the intermediary construction for long-running assignments, work at a fixed location, or when you want to run no risk at all. In doubt? Then the intermediary construction is the safe choice.
Intermediation suits:
- Short, well-defined projects with a clear result
- Freelancers who genuinely work independently and remotely
- Assignments where the freelancer has multiple clients
- Situations where you knowingly and informedly accept the DBA Act risk
The intermediary construction suits:
- Long-running assignments (think more than six months)
- Clients who want to run no compliance risk at all
- Situations where you prefer to place the risk fully with Maedium
- Any borderline case, because certainty outweighs the slightly higher fee
Honest disclosure: why our advice may look biased
Maedium earns from both constructions, and slightly more from the intermediary setup. Even so, I regularly advise intermediation, simply because it is the logical choice for a short and independent project. I want you to choose the right construction, not the most expensive one.
Where are we not the best choice? If you need twenty engineers at once, large staffing firms are better equipped. Maedium is at its strongest with targeted placement of one or a few specialists, with personal guidance and attention to compliance.
Frequently asked questions about both constructions
Is the intermediary construction the same as secondment?
No. With secondment or payrolling, the professional becomes employed by the firm, which becomes the employer and pays payroll tax. With the intermediary construction, that does not happen: the IT professional stays an independent entrepreneur. Maedium only sits contractually in between and does not become an employer. So you keep a freelance assignment, not employment.
Do I lose the direct bond with the freelancer?
No. You simply work with the engineer day to day. Only the contractual and legal side runs through Maedium. The substantive direction and personal contact stay between you and the freelancer.
Can I switch from intermediation to the intermediary construction later?
Yes. If a short assignment runs on or becomes more structural, switching to the intermediary construction is wise. That prevents an initially independent assignment from creating DBA Act risk after all. I am happy to think along about the right moment.
Who is responsible during a Tax Authority audit?
With intermediation, you are contractually the freelancer's client, so the assessment of the working relationship primarily concerns you. With the intermediary construction, Maedium sits in between and I take on the risk, safeguarded through my model agreement and contract structure. Note: the Tax Authority always looks at practice, not just paper. That is why I set up every assignment so that no authority or embedding arises.
Conclusion: which construction do you choose?
Intermediation is priced lighter and suits short, independent assignments. The intermediary construction costs a little more, but takes the DBA Act risk off your plate and suits long-running work. The right choice depends on the nature of your assignment, not on price alone.
For whom is the intermediary construction worth it? For clients with long-running assignments or low risk tolerance. For whom not? If you have a short, well-defined project with a genuinely independent freelancer, intermediation is often fine.
My rule of thumb: when in doubt, choose the intermediary construction. The peace of mind is usually worth the slightly higher fee.
Unsure about the right construction?
Want to look together at which construction suits your assignment? Plan a no-obligation call with me. I give you honest advice, even when that is the lighter option.
Note: rates and regulations may change. For current Dutch DBA Act information, consult rijksoverheid.nl or belastingdienst.nl. For complex situations, I advise consulting an employment lawyer or tax advisor.
