Setting Up Administer Salaries for the Netherlands

This chapter provides an overview of the terminology used in Administer Salaries for the Netherlands, lists prerequisites, and common elements, and discusses how to:

• Define earnings and payments.

• Define benefits and other deductions.

• Organize your payroll processes.

• Establish additional benefits features.

Understanding the Terminology Used in Administer Salaries for the Netherlands

The following table defines the terminology used throughout Administer Salaries for the Netherlands and this documentation:

Prerequisites

Before you enter information about payments, benefits, and deductions for your employees, complete the following information:

• Enter any companies for which you plan to run payroll, along with their employer tax identification numbers and default pay groups.

• Create the appropriate salary plans and grades for your companies on the Salary Plan and Salary Grade tables.

  Use the Salary Plan table to distinguish salary plans for different types of employees, such as permanent and temporary hires. Use the Salary Grade table to specify the salary grades for your companies and the corresponding salary ranges (minimum, midpoint, and maximum) for each grade.

• Enter employee personal and job data.

See Also

Adding a Person in PeopleSoft Human Resources

Increasing the Workforce

Setting Up Organization Foundation Tables

Setting Up Salary Plans, Grades, and Steps

Common Elements Used in This Chapter

Defining Earnings and Payments

To define earnings and payments, use the EARNINGS_TABLE component, the EARNS_PROGRAM_TBL component, and the SHIFT_TABLE component.

This section provides overviews of earnings and earnings programs and discusses how to:

• Define earning codes and payment types.

• Define the adjustment factors and tax classes for earning codes.

• Set up earnings programs.

• Set up work shifts and define shift differential pay.

See Also

Increasing the Workforce

Understanding Earnings

Earnings are payments made to employees, whether for regular salary or additional payments, such as sick pay, bonuses, and commissions. The information that you establish in the Earnings table is the basis for the way the system calculates and taxes earnings. Create a work sheet to map the way that you want to define earnings and shifts within the system before you set them up. Also determine the three-character codes that represent earnings codes, such as REG (regular), VAC (vacation), and HOL (holiday).

At a minimum, establish earnings codes to specify regular earnings and overtime pay. Regular earnings are normally associated with a regular salary or regular hours worked. Regular earnings are typically taxed by all taxing entities and consist of a simple rate-multiplied-by-time calculation, or a flat amount. Overtime pay uses a slightly different method of calculation based on regular earnings. For example, overtime, double time, or triple time earnings codes apply a multiplication factor to the earnings.

Also set up earnings codes for leave pay, such as sick pay, holiday pay, and vacation pay. Set up your earnings codes for these to process accrual accounting, as well. If you want your payroll system to track holiday, vacation, sick, jury duty, personal time off, and so on for leave accruals, set up earnings codes for these leave categories and report the applicable hours.

Depending on your organization's requirements, you may want to create other types of earnings to do the following:

• Record non-hourly earnings, such as bonuses, commissions, or automobile allowances.

• Differentiate between earnings that should or shouldn't be taxed, such as automobile allowances or expense advances.

• Identify the earnings codes you use to pay earnings resulting from late paperwork or collective bargaining.

Understanding Earnings Programs

An earnings program is a set of valid earnings codes for one or more pay groups. A single company may have any number of earnings programs. An individual employee belongs to only one earnings program, based upon the individual's pay group, and the codes for that program are the only valid earnings codes for that employee.

For example, executives ordinarily do not get overtime pay, so their pay group's earnings program shouldn't include overtime as a valid earnings code. You might also want to exclude part-time employees who work less than 30 hours a week from holiday pay eligibility.

Normally, employees are assigned to earnings programs through their pay groups. The earnings programs that you enter on the Company Table - Default Settings page become the default earnings programs for the pay groups that you set up on the Pay Group Table - Definition page. To override this default, specify a different earnings program for a pay group. You cannot override the pay group earnings program at the employee level if an employee belongs to a certain pay group.

See Also

Entering Company Information

Pages Used to Define Earnings and Payments

Defining Earning Codes and Payment Types

Access the Earnings Table - General page (Set Up HRMS, Product Related, Benefits NLD, Earnings Table, General).

Permanent/Incidental

Select whether the earnings code is Permanent, Incidental, or Both.

Payment Type

Select the payment type. Values are: Amts Only (amounts only): Select if you want to enable the entry of amounts for earnings. Both: Some companies need the ability to enter both hours and an amount for earnings. Select this option to record an employee's hours (for your records only) and to enter the actual amount of pay that you want the employee to receive. Either: Select if you want to enable the entry of either hours or amount, but not both, for earnings. Flat Amt (flat amount): Select to define an earnings code as a flat amount and also specify the amount. For example, you want to give multiple employees a specific flat amount of additional pay. You can maintain this type of flat amount and make mass changes to the flat amount on the Earnings table, instead of changing multiple additional pay records at the employee level. Hours Only: Select if you want to enable the entry of hours for earnings. Sal System (salary system): Select if a third-party payroll system defines the way to process the payment for earnings. Units/Ovr (units/override): Select and specify a rate if you want to set up your payroll system to override the hourly rate on the employee's job record, or if you want to provide an earnings code for piecework earnings.

Defining the Adjustment Factors and Tax Classes for Earning Codes

Access the Earnings Table - Calculation page (Set Up HRMS, Product Related, Benefits NLD, Earnings Table, Earnings Table - Calculation).

Rate Adjustment Factor	The amount that applies to adjustments in pay rates. For example, if your collective labor agreement included an hourly cost of living adjustment, enter the value in this field for any applicable earnings (such as regular, overtime, vacation, and sick). Any employee getting this type of earnings is paid that hourly amount in addition to the compensation rate specified on that employee's job record.
Hours Adjustment Factor	Enables you to indicate the adjustment to the number of hours associated with an earnings code, such as 40 hours for regular earnings. This number can be positive or negative.
Multiplication Factor	To calculate hourly earnings, such as overtime or double time, for which a specific number or factor (such as 1.5 or 2.0 for double time) multiplies the earnings for overtime.
Earnings Adjustment Factor	If you want to indicate a specific amount that doesn't affect pay rates or hours, enter it as a flat amount here. Use this type of definition for earnings codes for which the amount always remains the same for all employees, such as an 50.00 EUR Christmas bonus. When you set up this type of earnings, also set the multiplication factor to zero.
Maximum Yearly Earnings	Enter a value to set a yearly ceiling on the earnings code.

Setting Up Earnings Programs

Access the Earnings Program Table page (Set Up HRMS, Product Related, Benefits NLD, Earnings Program Table).

Earnings Code

Select each earnings code that you want in the program. Insert additional data rows if necessary.

Setting Up Work Shifts and Defining Shift Differential Pay

Access the Shift Table page (Set Up HRMS, Product Related, Benefits NLD, Shift Table).

Time In Hour, Time In Minute, Time Out Hour and Time Out Minute	The time format uses a 24-hour clock, so if you're setting up a shift from 8 a.m. to 4 p.m., enter 8 and 00 to 16 and 00.
Specified at Employee level	Select this check box if shift premiums vary from employee to employee. This enables you to define the shift premium rate or factor for employees assigned to the shift at the employee level. To define shift premiums at the employee level, use the Shift/Rate/Factor fields on the Job Data - Job Information page.
Rate	If you didn't select Specified at Employee Level, enter the rate.
Factor	If you didn't select Specified at Employee Level, enter the factor.

Defining Benefits and Other Deductions

To define benefit plans and other deductions, use the Deduction table (DEDUCTION_TABLE1), General Deduction Table (GENL_DEDUCTION_TBL), Company General Deduction Table (GDED_COM_TBL), Benefit Plan Table (BENEFIT_PLAN_TABLE), Coverage Code Table (COVRG_CD_TBL), and the Benefit Program Table (BEN_PROG_DEFN) components.

This section provides overviews of benefit plans, benefit programs, and deductions and discusses how to:

• Set up permanent and incidental deductions for tax purposes.

• Set up general deduction data.

• Set up company general deductions.

• Set up benefit plan definitions.

• Create benefit coverage codes.

• Set up basic benefit program data.

• Link benefits programs to plan types.

• Link benefits programs to rate and calculate values.

• Use the benefit program clone utility.

Understanding Benefit Plans

Every benefit plan is distinguished by a unique combination of plan type and plan name. Plan type is important because our system uses it to distinguish insurance plans, for example, health insurance plans from life insurance plans.

Plan types are assigned a numerical value and are divided into categories based upon those values. For example, all health-related plan types begin with a 1. Therefore, the system recognizes all plan types in the range of 10−19 as health plans. After that come the life insurance plans, with plan type values of 20−29, and so on.

For each delivered category, you can add types that include a letter value, as long as you begin with the correct series identification. For example, all health plan types must start with a 1, so you can add plan types with values from 1A to 1Z. A value of 2Z wouldn't work as a health plan type but could be used for a new life insurance plan type.

Because you add plan types starting from the beginning of the alphabet, it is recommended that you start with Z and work backward to A. If you use a plan type in the range of 10−19 and 1A−1Z, the system recognizes it as a health plan type.

The plan type series delivered by Human Resources are as follows:

We recommend that you work within the delivered plan type series. If you add plan types that do not conform to the delivered series, update the associated processing logic.

The plan types delivered by Human Resources are as follows:

The first step in defining a benefit plan is to name the plan and identify the plan type through the Benefit Plan table.

See Also

Entering Benefits and Deductions

Understanding Benefit Programs

A benefit program is a set of benefits and deductions that is valid for an employee or group of employees. A single company may have any number of programs, and an employee with concurrent jobs may have multiple benefit programs. Therefore, when you set up a benefit program, you are defining which benefits and deductions are valid for the employees enrolled in the program.

To keep your benefit program accurate and consistent, the calculation rules and options must be individually effective-dated in a coherent, logical manner. If they aren't, your benefit program is open to a variety of errors as historical records get shuffled and benefits data lost. Plans associated with a benefit program cannot be in effect unless their effective dates are set on or after the effective date of the benefit program. Similarly, the rates and calculation rules that you associate with the plans cannot be in effect unless their effective dates are set on or after the dates of the plans to which they're linked. If a benefit program and benefit plan combination isn't effective when you think it should be, check the effective dates of the benefit program and the benefit plan. The effective date of the benefit plan must be less than or equal to the effective date of the benefit program.

Understanding Deductions

Deductions comprise all payroll deductions for benefit plans and other general payments, not including taxes. There are two basic types of deductions: benefits deductions and general deductions. In Human Resources, a general deduction is a deduction (permanent or incidental) that isn't a benefit deduction. Charitable deductions, union dues, parking fees, garnishments, and bonds all fit into this category. Refer to deductions for taxes as taxes. When setting up deductions in Human Resources, remember that there are two parts to defining a deduction.

To define a deduction:

1. Use the Deduction Table page to specify, for all benefits deductions and general deductions, whether a deduction is permanent or incidental and how the deduction affects taxes.

2. Define the actual calculation of a deduction on the General Deduction Table page or on the Benefits tables, depending on the type of deduction that you specify.

   Use the General Deduction Table page for non-benefit deductions, such as parking fees, union dues, or garnishments. This page contains the codes that classify all payroll deductions that do not fit into a category covered by one of the Benefits tables, such as loan payments, cash, advance settlements, union dues, and parking fees.

   Use the Benefits tables for benefit deductions, such as those for medical and life insurance plans.

   For each entry on the General Deduction Table page or in the Benefits table, there should be a corresponding entry on the Deduction Table page.

The Human Resources system provides two Structured Query Reports (SQRs) for reviewing the deduction codes that are entered into the system:

• The Deductions report (INT005NL) provides an overview of the different deductions defined in the system.

  This SQR is sorted by plan type, deduction code, and effective date. It prints the classification codes that you set up for each plan type on the Deduction Table page.

• The General Deduction/Frequency report (INT006NL) provides information about valid general deduction codes that you entered into the system.

  The report shows the calculation type code for each deduction and, where applicable, the flat rate or percentage, the employee pay frequency, and any additional flat deduction amounts.

See Also

Entering Data for General Deductions

Administer Salaries for the Netherlands Reports

Pages Used to Define Benefits and Other Deductions

See Also

Setting Up Vendors

Setting Up Permanent and Incidental Deductions for Tax Purposes

Access the Deduction Table page (Set Up HRMS, Product Related, Benefits NLD, Deduction Table).

Note. Deductions on the Deduction table are grouped by plan type. The plan type code for general deductions is always 00. Benefit deduction plan type codes vary depending on the nature of the benefit, but are already coded into the system as translate values. If you want to create plan types, use Z0 through ZZ. You must also ensure that the deduction codes you create are the same ones that you used in the General Deduction Table and the Benefits Table.

Setting Up General Deduction Data

Access the General Deduction Table page (Set Up HRMS, Product Related, Benefits NLD, General Deduction Table).

Deduction Calculation Routine

For each general deduction, indicate the type of deduction calculation routine that your payroll system uses to determine the amount of the deduction. If you select a deduction calculation routine that uses a deduction rate or percent, also enter a flat/additional amount per pay period to be deducted. However, you must indicate the amount here only if it's the same for all employees within a pay frequency. Flat Amount: Select if the deduction is a flat amount. Enter the amount in the Deduction Flat/Addl Amount (deduction flat/additional amount) field. Percentage: Select if the deduction is calculated as a percentage. Enter the percentage in the Deduction Rate or % (deduction rate or percent) field. Calculated by Salary System: Select if the deduction is calculated by the payroll system.

Amount Per Pay Period

This group box displays the amount to be deducted from an employee's pay every pay period.

Setting Up Company General Deductions

Access the Company General Deductions page (Set Up HRMS, Product Related, Benefits NLD, Company General Deductions).

Deduction Code

Select deduction codes that are applicable for your company. Deduction codes are created on the Deduction Table page (DEDUCT_TABLE1_NL).

Setting Up Benefit Providers

Access the Vendor Information page (Set Up HRMS, Product Related, Benefits NLD, Provider/Vendor Table, Vendor Information).

Benefit providers are defined as vendors. The Provider/Vendor Table component (PROVIDER_TABLE) is described in the PeopleSoft Enterprise HRMS Application Fundamentals PeopleBook.

See Also

Setting Up Vendors

Setting Up Benefit Plan Definitions

Access the Benefit Plan Table page (Set Up HRMS, Product Related, Benefits NLD, Benefit Plan Table).

Vendor ID	Select the provider of the benefit plan. Use the Provider/Vendor Table component to set up providers.
Group Number	Select the group number. Define group numbers on the Provider/Vendor Table — Policy Information page.
SPD URL ID (summary plan description uniform resource locator identification)	PeopleSoft Enterprise eBenefits provides access to the summary plan description on the Provider Policy Table. Select the URL ID to the location of the summary plan description.
Default Deduction Code	(Optional) Enter a default code here to save you from typing the deduction code each time that you associate this benefit plan with a benefit program on the Benefit/Deduction Program Table. (Deduction codes are created on the Deduction Table page.)
Pay Mode	Fields in this group box are for use with PeopleSoft Enterprise Payroll for North America only.
EDI Plan Coverage Description	This field appears for health plans and is for use in North America only.
EDI Insurance Line Code	This field appears for health plans and is for use in North America only.
Self-Service Plan Description	Use only for health (1x), disability (3x), leave (5x), and retirement (7x) plans. Enter text describing the benefit plan that will also appear on eBenefits pages.

Internal Administrative Contacts

See Also

Defining Benefits and Other Deductions

Setting Up Internal Administrative Contact Information

Creating Benefit Coverage Codes

Access the Coverage Codes page (Set Up HRMS, Product Related, Benefits NLD, Coverage Codes, Coverage Codes ).

COBRA Coverage Set	This field is not used by organizations in the Netherlands.
Total Covered Persons	Select this check box to activate the total covered person types functionality for this coverage code.
Total Minimum Covered and Total Maximum Covered	These fields are only visible when the Total Covered Persons check box is selected. Enter the allowable minimum and maximum covered persons. Include the employee in this count.

Allowable Covered Person Types

Setting Up Basic Benefit Program Data

Access the Benefit Program page (Set Up HRMS, Product Related, Benefits NLD, Benefit Program Table, Benefit Program).

Program Type	The program type is set when you first build the benefit program. Set this field to Manual. When you create the benefit program, use PeopleSoft Enterprise Benefits Administration in association with the Manage Base Benefits business process in Human Resources and select the Benefits Administration check box in the Installation table, set the Program Type field to Automated.
Currency Code	The type of currency that the program uses for this program's benefit and deduction calculations.
Dependent Age Limit	Enables you to set a maximum age limit that, once reached, indicates that a dependent is no longer eligible for coverage.
Student Age Limit	Enables you to set a maximum age limit that, once reached, indicates that a dependent can no longer be covered by student status.
Exclude Disabled from Age Lmt. (exclude disabled from age limit)	Enables you to exclude disabled dependents from the maximum dependent limits.
Dep Ineligible if Married (dependent ineligible if married)	Indicates that dependents who are married aren't eligible for coverage under the benefits program.

Important! All of the fields in the COBRA, Benefits Administration, FSA, and FMLA group boxes are for Canadian and U.S. functionality and are not for operations in the Netherlands.

Self-Service Configuration

Use this group box to define the rules for displaying and processing the PeopleSoft Enterprise eBenefits application pages.

Linking Benefits Programs to Plan Types

Access the Plan Type and Option page (Set Up HRMS, Product Related, Benefits NLD, Benefit Program Table, Plan Type and Option).

Plan Type

Important! The DispPlnSeq, Event Rules ID, COBRA Plan, HIPAA Plan, and Load Cross Plan Values elements are for Canadian and U.S. functionality and are not for operations in the Netherlands.

Self-Service Configuration

The fields in this group box are for Canadian and U.S. functionality and are not for operations in the Netherlands.

Option

Important! The Option Seq (option sequence), Option Code, Opt Level (option level), Geog Locn (geographic location), and Elig ID (eligibility rules ID), fields are all used for Benefits Administration and are not for operations in the Netherlands.

Linking Benefits Programs to Rate and Calculate Values

Access the Cost page (Set Up HRMS, Product Related, Benefits NLD, Benefit Program Table, Cost).

Cost Type	Select a cost type: Price, or Credit.
Benefit Rate Type	Select a rate type to specify which table should be used to determine rates for the plan type.

Important! The Rate ID, Earn Code (earnings code), Cost ID, and Calc TblID (calculate table ID) fields are all used for Benefits Administration and are not for operations in the Netherlands.

Using the Benefits Clone Utility

Access the Clone Benefit Program page (Set Up HRMS, Product Related, Benefits NLD, Clone Benefit Program, Clone Benefit Program).

Object Type to Clone	Select the type of object you want to copy: Benefit Program, Coverage Formula, Eligibility Rule, or Event Rule.
Selected	Select the check box for the benefit program, coverage formula, eligibility rule, or event rule that you can to copy.

Copy To

This group box defines the name of the new object that will be created. These fields vary, depending upon the type of object you're cloning.

Organizing Your Payroll Processes

To organize your payroll process, use the Pay Group Table (PAYGROUP_TABLE1), The Pay Run Table (PAY_RUN_TABLE), and the Pay Calendar Table (PAY_CALENDAR_TABLE) components.

This section provides an overview of pay groups and pay group setup and discusses how to:

• Identify bank codes.

• Define holiday schedules.

• Create and maintain pay groups.

• Enter additional pay group processing parameters.

• Set up pay run IDs.

• Create pay calendars.

Understanding Pay Groups and Pay Group Setup

When you implement Human Resources, one of the major decisions is which pay groups to set up. A pay group gathers a set of employees for payroll processing. Your Human Resources system provides an SQR, the Pay Groups report, so that you can review an overview of the valid pay groups in the system.

Before grouping people into pay groups, consider that all employees in a pay group must:

• Belong to the same company.

• Be paid at the same pay frequency.

• Use the same check form or direct deposit advice form.

• Have the same check date.

• Share the same pay period begin and end dates.

• Work in the same country.

• Be paid by the same bank.

• Have the same work schedule for proration.

• Have the same minimum net pay.

• Have the same earnings program.

For example, when setting up pay groups for a fictional company, GBI, group employees as follows:

Establish pay groups using the three pages in the Pay Group Table. With these pages, you can create pay groups, assign valid pay group employee types, and enter additional bank and earning parameters for your pay groups. Pay groups default to employee job records from the company level.

Important! The Pay Group Table component in the system, located outside Administer Salaries for the Netherlands, isn't identical to the Pay Group Table component used for the Netherlands. There are distinct differences in the fields. For users of Administer Salaries for the Netherlands, it is important that you use the Pay Group Table component that appears on the Benefits NLD menu.

See Also

Entering Company Information

Pages Used in Organizing Your Payroll Process

Identifying Bank Codes

Access the Bank Table page (Set Up HRMS, Common Definitions, Banking, Banks, Bank Table).

The system uses the bank number (or transit number) that you enter here to identify the bank from which checks or electronic funds transfers (direct deposits) are drawn for a pay group. Always create at least one entry on this table for the bank from which paychecks or direct deposits are drawn.

Note. We don't recommend using this table to edit against the bank transit numbers for your employees' direct deposit accounts. If you allow employees to direct deposit to any bank, it would be almost impossible to maintain a table of all valid bank numbers.

See Also

Setting Up Banks and Bank Branches

(NLD) Loading Dutch Postal Codes

Understanding Job Data

Defining Holiday Schedules

Access the Holiday Schedule page (Set Up HRMS, Foundation Tables, Organization, Holiday Schedule).

See Also

Setting Up Holiday Schedules

Creating and Maintaining Pay Groups

Access the Pay Group Table - Definition page (Set Up HRMS, Product Related, Benefits NLD, Pay Group Table, Definition).

Pay Group Information

Frequency

GL Use

The fields in the GL Use (general ledger use) group box are for Canadian and U.S. functionality and are not for operations in the Netherlands.

Entering Additional Pay Group Processing Parameters

Access the Pay Group Table - Calc Parameters page (Set Up HRMS, Product Related, Benefits NLD, Pay Group Table, Calc Parameters).

Paygroup Information

Earnings Types

Netherlands

See Also

Associating a Regulatory Region with a Transaction

Setting Up Pay Run IDs

Access the Pay Run Table page (Set Up HRMS, Product Related, Benefits NLD, Pay Run Table).

See Also

Creating Pay Run IDs

Creating Pay Calendars

Access the Pay Calendar Table page (Set Up HRMS, Product Related, Benefits NLD, Pay Calendar Table).

Pay Period End Date	Displays the date on which the pay period ends in the payroll cycle.
Pay Run ID	Each payroll background process needs a pay run ID to determine which pay group it should process. The system processes all pay calendar entries with the same pay run ID at the same time. Before you start payroll processing for a pay period, you must assign a pay run ID on this page. Establish the pay run ID on the Pay Run Table page.
Pay Period Begin Date	Select the date on which the pay period begins in the payroll cycle.
Paycheck Issue Date	Select the date that appears on the employee's paycheck or advice slip.
Calendar Year	Enter the calendar year for the pay run.
Month	Select the month for the pay run.
Number of workdays	Enter the number of workdays in the pay period for this pay run.
Production Code	Your third-party payroll system uses this field for information for the specific payroll run or for printing on the final pay slip.
Text Payment Order	Your third-party payroll system uses this field for including information for the specific payroll run or for printing on the final pay slip.
Payroll Calculation Run	(Optional). Use this check box to indicate whether the calendar has been processed. The system doesn't automatically set this check box.

See Also

Understanding Pay Calendars

Establishing Additional Benefits Features

This section lists common elements and discusses how to:

• Set up leave plans.

• Enter pension plan details.

• Set up age-graded rates.

• Create life and accidental death and dismemberment insurance coverage groups.

Common Elements Used in This Section

Pages Used in Establishing Additional Benefits Features

Setting Up Leave Plans

Access the Leave Plan Table page (Set Up HRMS, Product Related, Benefits NLD, Leave Plan Table).

Leave Plans

Accrual Calculation

Automatic Accrual Processing

Define the parameters for the system to automatically process and accrue employee leave time.

Manual Accrual Processing

The values you enter in this group box are for reference only; they don't affect leave accrual plan processing in any way.

First Year Award Values

Use this group box for leave plans that use annual accruals. Define a leave plan in which, during the first year of service, leave hours are prorated based on the month employment begins. First year award values are available only when the Accrual Rate Unit for the leave plan is Hours Per Year.

In the following year, these new hires are no longer considered first-year employees and don't receive leave accrual awards based on their first year award values.

Accrual Rate Values

These values are defined in terms of the service unit and accrual rate unit. Enter the values that define how your employees accrue time for this leave plan.

In our example, values in the Service Units field are defined in hours per month. For the first 12 months of service, employees that you enroll in this sick leave plan accrue four hours per month. For months 13 through 60, employees accrue six hours per month and eight hours of sick leave per month thereafter.

If you choose a value in the Service Units field of Hours Per Hour, the accrual rate values display the amount of hours that an employee would receive after a certain number of hours of service. If you choose a value in the Accrual Rate Unit field of Hours per Year, the accrual rate values display the hours per year that an employee is awarded after a certain number of months of service.

Service Bonus Values

Use this group box to define how employees in the plan accrue bonus hours. These hours are in addition to regular leave hour accruals. For example, you can structure a vacation leave plan so that an employee receives a one-time special bonus of 20 hours upon enrolling in the plan; after five years, a one-time special bonus of 40 hours; and after ten years, another one-time special bonus of 40 hours.

Entering Pension Plan Details

Access the Pension Plan Table page (Set Up HRMS, Product Related, Benefits NLD, Pension Plan Table).

US Pension Plans

Contributory Plans

Setting Up Benefit Rates

Access the Benefit Rates page (Set Up HRMS, Product Related, Benefits NLD, Benefit Rates, Benefit Rates).

Benefit Rate Type	The system calculates the employee portion of the premium based on the total rate and employer portion. Select from one of the specified benefit rate types. Set up benefit rate types on the Benefit Rate Types page that you access as follows: Set Up HRMS, Product Related, Base Benefits, Rates and Rules, Benefit Rate Types. There are a set of benefit rate types delivered as system data, but you can also define additional benefit rate types if required. See Defining Benefit Rate Types.
Premium Frequency	Define how you quote the cost of benefit rates. If the employee's pay frequency differs from the premium frequency, the system annualizes the coverage rates and divides by employee pay frequency to determine the pay period rate.
Rate per Unit	Select from the following values: None: For a flat rate. Per Hundred: For a rate that applies to each 100.00 EUR of coverage. Per Thousand: For a rate that applies to each 1000.00 EUR of coverage.
Specify Optional Limit	Click this link to display the Amount Subject to Limit page, which defines the portion of the benefit rate that is subject to the percent of gross pay limit defined on the Calculation Rule page: Entire Rate Amount, Flat Amount, Not Applicable, or Percent of Rate. If you select Flat Amount, enter the amount that is subject to the limit. If you select Percent of Rate Limit, enter the percentage of the employee rate that is subject to the limit.

Rate Data - Composite Rates

In the Rate Data group box, you can select between Composite Rates or Detail Rates. Composite rates are based on a specific amount. Use the Detail Rates tab if there are separate rates that apply before and after tax, or taxable and nontaxable rates.

The appearance of this grid changes based on the Benefit Rate Type. Complete the keys based on the criteria from the Benefit Rate Type.

Rate Data - Detail Rates

Select the Detail Rates tab.

Complete the Detail Rates tab if you need to define employee premiums that apply before and after tax, or if the employer premium has a taxable and nontaxable rate.

Creating Life and Accidental Death and Dismemberment Insurance Coverage Groups

Access the Coverage Group Table page (Set Up HRMS, Product Related, Benefits NLD, Coverage Group Table, Coverage Group Table).

Use the fields on this page to define coverage group codes that set the maximum total life and AD/D coverage for life insurance and AD/D insurance benefit plans.