PeopleSoft Enterprise Human Resources 9.1 PeopleBook: Administer Salaries for the Netherlands

Entering Earnings, Payments, and Other Payroll Information

This chapter provides an overview of earnings and payments, lists common elements, and discusses how to:

Enter employee earnings.
Specify employee bank information.

Understanding Earnings and Payments

After you have entered standardized information about your salary administration system into the setup tables, you can collect information about payments to employees (such as regular salary and related additional earnings) that is needed to process payroll. You also enter payroll-related information about employee bank account information.

Earnings are payments made to employees, and total earnings comprise regular salary and additional earnings. Earnings or payments are considered permanent or incidental. For example, regular salary is a permanent payment, traveling allowance for commuting is a permanent additional payment, and a one-time performance bonus is an incidental additional payment.

In addition to regular salary, you might need to enter additional earnings information for employees or employee groups. The page you use to enter earnings depends on the nature of the earning.

Some important terms to understand are:

Permanent earnings	Earnings that cover a time period with an initial and final date, but the final date is open, and the payment continues indefinitely until the final date is closed. Examples of such earnings include a fixed commuting allowance, a telephone allowance, or a labor market salary adjustment.
Incidental payments	Cover a one-time payment inside a closed time period. An example of an incidental earning is a performance bonus.
Incidental hours	Pay for hours other than regular amounts. An example of incidental hours is overtime.

Common Elements in This Chapter

Earnings Code	Enter the earnings code for the employee. If there is more than one earnings code, add additional rows. Although you can enter an unlimited number of earnings for an employee, the types of possible earnings for an employee depend upon the employee's company and pay group.
Currency Code	The currency code is set by default from the job currency code, but you can override it.
Hours	If earnings are based upon hours worked, enter the hours.
Hourly Rate	If earnings are based upon hours worked, enter the hourly rate.
Earnings	If earnings are based upon a specific amount or fixed allowance, enter the amount here.
Sequence	Numeric sequencing is required if you are entering multiple earnings information using the same effective date.
Pay Group	The pay group with which you are working.
Begin Period and End Period	Indicate the period of time to which the incidental earnings apply.
OK to Pay	If your organization has a procedure in place to first enter the earnings and then to obtain an approval for the payment of the earnings, select this check box to indicate payment approval.

Entering Employee Earnings

This section lists prerequisites and discusses how to:

Enter permanent earnings data.
Enter incidental payments.
Enter incidental hours data.
Enter incidental hourly earnings data.

Prerequisites

Before you can enter employee earnings, you must first set up valid earnings codes on the Regular Earnings page and create pay calendars.

Pages Used to Enter Employee Earnings

Page Name	Definition Name	Navigation	Usage
Regular Earnings	ADDITIONAL_PAY1_NL	Workforce Administration, Benefit Information NLD, Assign Earnings and Deductions, Regular Earnings, Regular Earnings	Enter all types of permanent extra payments made to employees in addition to regular salary. Do not enter incidental earnings on this page.
Incidental Earnings	EARNINGS_INC_NL	Workforce Administration, Benefit Information NLD, Assign Earnings and Deductions, Incidental Earnings, Incidental Earnings	Enter incidental payments made to employees.
Hourly Time/Overtime	ADDL_HRS_INC_NL	Workforce Administration, Benefit Information NLD, Assign Earnings and Deductions, Hourly Time/Overtime, Hourly Time/Overtime	Enter incidental payments made to individual employees on an hourly basis.
Hourly Time by Calendar	ADDL_HRS_DE_INC_NL	Workforce Administration, Benefit Information NLD, Assign Earnings and Deductions, Hourly Time by Calendar, Hourly Time by Calendar	Enter incidental hourly earnings data, which are payments made to an employee group on an hourly basis. Do not use this page to enter information about incidental earnings; enter incidental earnings on the Incidental Earnings page. (You must have first set up valid earnings codes on the Earnings page and have set up one or more pay calendars for the pay groups to which the employees belong.)

Entering Permanent Earnings Data

Access the Regular Earnings page (Workforce Administration, Benefit Information NLD, Assign Earnings and Deductions, Regular Earnings, Regular Earnings).

Earnings End Date

Enter the date that the earnings end. To enter repeated earnings end dates, add data rows.

Compensation Rate/Frequency

Displays the rate of compensation and frequency of that compensation for the employee.

Standard Hours

Displays the standard hours that the employee works per work period.

Work Period

Displays the standard work period. This is the time period in which employees must complete the standard hours.

The system uses the annualization factor of the standard work period in combination with the standard hours to calculate full-time equivalency (FTE).

Employee Type

Displays the employee type according to predetermined variables.

Reason

Select a reason for the payment.

Goal Amount

If there is a limit to the total amount that you want to pay the employee, such as when the payment is made in a series of smaller payments over several pay periods, then enter the limit here.

Entering Incidental Payments

Access the Incidental Earnings page (Workforce Administration, Benefit Information NLD, Assign Earnings and Deductions, Incidental Earnings).

Unit/Hours

Enter the applicable units or hours for which the employee should be compensated.

Rate/Perc (rate/percentage)

Enter the applicable rate or percentage of compensation.

Entering Incidental Hours Data

Access the Hourly Time/Overtime page (Workforce Administration, Benefit Information NLD, Assign Earnings and Deductions, Hourly Time/Overtime, Hourly Time/Overtime).

Other Hours

Enter the amount of other hours worked.

Hourly Rate

Enter the hourly rate for the other hours worked.

Regular Shift

Select the employee's regular shift.

Entering Incidental Hourly Earnings Data

Access the Hourly Time by Calendar page (Workforce Administration, Benefit Information NLD, Assign Earnings and Deductions, Hourly Time by Calendar, Hourly Time by Calendar).

Hours Type

Select the hours type. The hours type is an earnings code.

Available codes include only those earnings codes that are defined as incidental and that are based upon hours on the Regular Earnings page. If there is more than one type of incidental hours for this employee, add additional data rows.

Although you can enter an unlimited number of incidental earnings for an employee, the possible types of incidental earnings for an employee depend upon the employee's company and pay group.

Shift

Select the employee's regular shift.

Specifying Employee Bank Information

This section discusses how to enter payment method data.

Page Used to Specify Employee Bank Information

Page Name	Definition Name	Navigation	Usage
Payment Distribution	DIRECT_DEPOSIT_NLD	Workforce Administration, Benefit Information NLD, Maintain General Information, Payment Distribution, Payment Distribution	Enter payment method and bank account information for each employee.

Entering Payment Method Data

Access the Payment Distribution page (Workforce Administration, Benefit Information NLD, Maintain General Information, Payment Distribution, Payment Distribution).

Priority

Enter a priority to indicate in which order to make payments or distributions to multiple accounts. The lower the priority number, the higher the priority. This is important when an employee's net pay doesn't cover all payments and account deposits.

Payment Type

Select the payment type:

Cash: if the employee is paid in cash.

Bank: if the employee's pay is paid into a bank account. Enter the details in the bank account fields.

Giro: if the employee's pay is paid into a Post Bank account.

Bank ID

Select the employee's bank. Set up bank details on the Bank Table page.

Branch ID

Select the employee's branch. This is an optional field for banks in the Netherlands.

Account Nbr (account number)

Enter the employee's account number, or select the account number if you have set this up on the Maintain Bank Accounts page. It must comply with the 11-Check account validation method.

Ledger Account# (ledger account number)

If the payment is cash for the deposit of any uncollected funds, enter a ledger account number.

Net Pay Amount

Enter a percentage of net pay or an exact amount to be paid. If there are multiple payments or distributions, then state each as either a percentage of net pay or an amount.

For example, an employee might want to have 50.00 EUR deposited to a savings account, receive a check for 100.00 EUR, and have 100 percent of the remaining net pay deposited to a checking account.

Currency

Select a currency for payment distributions.

Ascription

(Optional) Enter information regarding the name or identity of the account owner.

Earnings End Date	Enter the date that the earnings end. To enter repeated earnings end dates, add data rows.
Compensation Rate/Frequency	Displays the rate of compensation and frequency of that compensation for the employee.
Standard Hours	Displays the standard hours that the employee works per work period.
Work Period	Displays the standard work period. This is the time period in which employees must complete the standard hours. The system uses the annualization factor of the standard work period in combination with the standard hours to calculate full-time equivalency (FTE).
Employee Type	Displays the employee type according to predetermined variables.
Reason	Select a reason for the payment.
Goal Amount	If there is a limit to the total amount that you want to pay the employee, such as when the payment is made in a series of smaller payments over several pay periods, then enter the limit here.

Unit/Hours	Enter the applicable units or hours for which the employee should be compensated.
Rate/Perc (rate/percentage)	Enter the applicable rate or percentage of compensation.

Other Hours	Enter the amount of other hours worked.
Hourly Rate	Enter the hourly rate for the other hours worked.
Regular Shift	Select the employee's regular shift.

Priority	Enter a priority to indicate in which order to make payments or distributions to multiple accounts. The lower the priority number, the higher the priority. This is important when an employee's net pay doesn't cover all payments and account deposits.
Payment Type	Select the payment type: Cash: if the employee is paid in cash. Bank: if the employee's pay is paid into a bank account. Enter the details in the bank account fields. Giro: if the employee's pay is paid into a Post Bank account.
Bank ID	Select the employee's bank. Set up bank details on the Bank Table page.
Branch ID	Select the employee's branch. This is an optional field for banks in the Netherlands.
Account Nbr (account number)	Enter the employee's account number, or select the account number if you have set this up on the Maintain Bank Accounts page. It must comply with the 11-Check account validation method.
Ledger Account# (ledger account number)	If the payment is cash for the deposit of any uncollected funds, enter a ledger account number.
Net Pay Amount	Enter a percentage of net pay or an exact amount to be paid. If there are multiple payments or distributions, then state each as either a percentage of net pay or an amount. For example, an employee might want to have 50.00 EUR deposited to a savings account, receive a check for 100.00 EUR, and have 100 percent of the remaining net pay deposited to a checking account.
Currency	Select a currency for payment distributions.
Ascription	(Optional) Enter information regarding the name or identity of the account owner.