Understanding Global Payroll for the Netherlands

This chapter discusses:

• Global Payroll for the Netherlands.

• Global Payroll for the Netherlands business processes.

• Delivered elements for the Netherlands.

• Element naming conventions in the Netherlands.

• Archiving data for Global Payroll for the Netherlands.

• Viewing delivered elements.

Global Payroll for the Netherlands

Global Payroll for the Netherlands is a “country extension” of the core Global Payroll application. It provides you with the payroll rules, elements, and absence processes needed to run a Dutch payroll.

Global Payroll for the Netherlands Business Processes

Global Payroll for the Netherlands supports the following business processes:

• Earnings

  Global Payroll for the Netherlands provides the ability to define and process different types of earnings. These include base salary components, regular earnings, and incidental earnings. Base salary components include frequency-based salaries and holiday allowances. Regular earnings include commuting allowances and shift work allowances. Incidental earnings include 13th month, bonus, and overtime pay.

  See Understanding Earnings for the Netherlands.

• Deductions

  Global Payroll for the Netherlands provides the ability to define and process different types of deductions. These include regular deductions and incidental deductions. Regular deductions include private health insurance and savings plans. Incidental deductions include salary advances, loans, and garnishments.

  See Understanding Deductions.

• Taxes

  Global Payroll for the Netherlands includes:

  • Taxation rules for active and inactive people, such as employees and wao-ers (employees on long-term disability).

  • Tax for regular and non-regular payments.

  • Advantage ruling (Voordeelregel).

  • Additional tax rules (Herleidingsregels).

  • Exceptional tax rules, such as the 30% rule, and common tax reduction rules for low wages, former unemployment, and education.

  • Wage declaration for reporting to the Tax Authority and other legislative required reports and interfaces.

  See Withholding and Reporting Taxes.

• Social security

  Global Payroll for the Netherlands provides the ability to administer, calculate, and process different aspects of social security in the Netherlands. This includes:

  • Calculation of social insurances contributions (ZW, WAO, WW, and ZVW).

  • Support for additional premiums, such as pension premium, pre-pension premium (Pensioenpremie en vut-premie) and social insurance gaps (ANW en WAO-hiaat).

  • Set up of the employee and employer contribution for social insurances and the additional premiums by establishment.

  • Calculation based on the VCR method (Voortschrijdend Cumulatief Rekenen) using the Grondslagaanwasmethode.

  • Reporting of social security contributions in the Wage Declaration.

  • Legislative required reports and interfaces.

  See Tracking and Reporting Employee Social Security Contributions.

• Absences

  You can define and track multiple absences with Global Payroll for the Netherlands. This includes:

  See Updating Absences.

  • Absence types, such as vacation, illness, maternity, typical Dutch absences, and absence types regarding Wet Arbeid en Zorg.

  • Leave balances such as vacation days and reduced work hours (ADV-dagen).

  • Monitor long-term illnesses (wet Poortwachter).

  • You can also and track disability (WAO).

  • Illness reporting to the Dutch ARBO service providers.

• Overtime

  With Global Payroll for the Netherlands, you can calculate overtime based on Unit * Rate * Percentage, having unit as the extra hours per employee, the base as the employee's hourly rate from the previous period, and a percentage, like 100, 125, 150, or 200.

  See Understanding Earnings for the Netherlands.

• Payslips

  You can generate and print payslips using Global Payroll for the Netherlands. You can configure how you set up a payslip, show retro on a payslip, and have additional payslips to support special pay runs such as the 13th month.

  See Generating Payslips.

• Banking

  You can define the interface to banks in order to pay your employees and non-employees. Global Payroll for the Netherlands includes:

  • Support of bank payments through Interpay, according to the current standard format (Clieop03).

  • Net distribution of funds.

  • Payment list (Overzicht Bank/Giro betalingen).

  • Instruction letter business payment (Opdrachtformulier voor loonbetalingen).

See Running Banking Processes.

Delivered Elements for the Netherlands

Global Payroll for the Netherlands defines each business process for the Netherlands in terms of delivered elements and rules. Some of these elements and rules are specifically designed to meet legal requirements, while others support common or customary payroll practices.

This section discusses:

• Delivered element creation.

• Element ownership and maintenance.

Delivered Element Creation

All of the elements delivered as part of your country extension were created using the core application—the same application that you use to create additional elements and (in many cases) to configure existing elements delivered as part of Global Payroll. Because the tools needed to redefine or create new payroll elements are fully documented in the core application PeopleBook, we do not reproduce this information here. Instead, we briefly review the relationship between the core application (which contains the tools you need to define your own elements) and the country extensions (which contain country-specific rules and elements defined by PeopleSoft).

The core application:

• Consists of a payroll rules engine.

  The payroll rules engine is a flexible tool that enables you to define the rules of your payroll system and to run payroll and absence calculations. Global Payroll does not embed payroll-specific logic or computations in application code. Instead, it specifies all business application logic (such as earnings, deductions, absences, and accumulators) in terms of payroll rules. Global Payroll enables you to enter and maintain payroll rules through a set of pages and offers comprehensive features that enable you to work in your preferred language or currency.

• Provides a payroll processing framework.

  The payroll processing framework provides a flexible way to define and run payroll and absence processing flows (such as calendars, run types, pay periods, and process lists).

Country extensions:

• Are built using the core application.

• Consist of statutory and customary objects (country-specific payroll rules, elements, payroll processes, reports, pages, and self-service applications).

Element Ownership and Maintenance

This section describes PeopleSoft’s approach to element ownership and what this means for the maintenance of Dutch payroll rules. This information helps clarify which parts of the system you might be required to maintain, what you can modify, and what parts of the system you cannot change.

Element Ownership in Global Payroll

There are five categories of element ownership in Global Payroll:

Element Ownership in Global Payroll for the Netherlands

Of the five ownership categories described here, only these two are used to define Dutch elements:

• PS Delivered/Maintained.

• PS Delivered/Not Maintained.

Although Global Payroll for the Netherlands delivers some elements as PS Delivered/Maintained, the large majority of elements are designated PS Delivered/Not Maintained. This enables you to modify, update, and re-configure delivered elements to meet your own unique requirements.

This table contains an element-by-element description of the Global Payroll for the Netherlands approach to element ownership and maintenance:

Element Naming Conventions in the Netherlands

Understanding the naming convention developed for PeopleSoft-delivered elements can help you determine the element type, the functional area it serves, and how it is used.

This section discusses:

• Naming conventions.

• Functional area codes.

• Element type codes (PIN_TYPE).

• Abbreviations in element names for the Netherlands.

• Prefixes in field names for the Netherlands.

Naming Conventions

This section discusses the naming conventions for:

• Primary elements.

• Supporting elements.

• Component names (suffixes).

Primary Elements

Primary elements (such as earnings, deductions, absence take, and absence entitlement elements) do not contain functional area codes or element type codes in their names. Primary elements have names, based on Dutch terms, that identify their functions and element types without the use of additional codes.

Supporting Elements

For supporting elements (such as variables, formulas, dates, durations, and so forth), PeopleSoft uses the following naming convention: FFF TT NAME. Where:

• FFF is a functional area code.

  See Functional Area Codes.

• TT is the type of supporting element.

  See Element Type Codes (PIN_TYPE).

• NAME is based on a term in Dutch and provides a further means of identifying the element.

For example, in the variable BEL VR ARBKORT:

• BEL represents the functional area (Dutch taxes [Belastingen]).

• VR represents the element type (Variable).

• ARBKORT provides a further means of naming the element (variable identifying the Tax Labor Reduction [Arbeidskorting]).

Note. This naming convention applies to the following element types: arrays, brackets, counts, dates, durations, formulas, rate codes, variables, historical rules, fictitious calculation rules, proration rules, rounding rules, writable arrays, and generation control conditions.

Component Names (Suffixes)

In Global Payroll for the Netherlands, suffixes are used to name the components of earning and deduction elements. For example, when you create an earning, deduction, or absence element in Global Payroll, you must define the components that make up the element, such as base, rate, unit, and percentage. The system automatically generates the components and accumulators for the element based on the calculation rule or accumulator periods that are used. The system also names the components and accumulators by appending a suffix to the element’s name.

For example, suppose that you define the earning element named EARN1 with the following calculation rule:

EARN1 = Rate × Unit

The system automatically creates two additional elements for the components in the calculation rule:

• Rate element: EARN1_RATE.

• Unit element: EARN1_UNIT.

In Global Payroll, all suffixes fall into one of the following types:

• Separator.

• Earnings or deductions component suffixes.

• Earnings or deductions accumulator suffixes.

• Deduction arrears component suffixes.

• Deduction arrears accumulator suffixes.

• Absence entitlement component suffixes.

• Absence entitlement accumulator suffixes.

In Global Payroll for the Netherlands, all components and accumulators have:

• Country: NLD

• Separator: _

To view all of the suffixes defined for the Netherlands, use the Element Suffixes page in Global Payroll (core application).

Functional Area Codes

This table contains the functional area codes used in the names of Dutch elements:

Element Type Codes (PIN_TYPE)

The following table contains codes for all the element types. Because not all element types are delivered for the Netherlands, not all of these codes appear in the names of Dutch elements.

Abbreviations in Element Names for the Netherlands

This table lists some of the common abbreviations used in the names of Dutch elements:

Prefixes in Field Names for the Netherlands

This table lists some of the common prefixes used in fields for the Netherlands:

Archiving Data for Global Payroll for the Netherlands

PeopleSoft Enterprise Global Payroll for the Netherlands generates a large amount of result data. To keep the amount of saved data manageable, you should periodically archive it. PeopleSoft PeopleTools delivers an archiving tool called the Data Archive Manager. To aid you in archiving your result data using the Data Archive Manager, PeopleSoft Enterprise Global Payroll for the Netherlands delivers a predefined archive object (GPNL_RSLT_ARCHIVE) and an archive template (GPNLRSLT). The delivered archive template uses queries that select data by calendar group ID (CAL_RUN_ID field).

Note. Please use extreme caution when making changes to delivered archive objects, queries, or templates. Any modifications can result in the loss of important data.

See Also

Archiving Data

Enterprise PeopleTools PeopleBook: Data Management, “Using PeopleSoft Data Archive Manager”

Viewing Delivered Elements

The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for the Netherlands. Instructions for running the query are provided in PeopleSoft Enterprise Global Payroll 9.0 PeopleBook.

See Also

Understanding How to View Delivered Elements