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.
The following table defines the terminology used throughout Administer Salaries for the Netherlands and this documentation:
The functionality that ensures that all of the information about payments and pay deduction for employees is included within yourHR system. Third-party systems need this information to process your organization's payroll. |
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Groups of staff that are distinguished from others by a unique set of working conditions, salary packages, and benefits programs. Pay groups can be distinguished across departments within a company. |
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Permanent (or Semipermanent) |
Payments or deductions that cover a time period with an initial and final date. The final date is open, and the payment or deduction continues indefinitely until the final date is closed. |
Incidental |
Payments or deductions that cover a time period that is closed. The payment or deduction is a one-time transaction. |
Salary |
An employee's annual gross salary or to an employee's regular salary (regular earnings) for a pay cycle. |
Payments made to employees. Total earnings comprise regular salary and additional earnings. Earnings are either permanent or incidental. For example, regular salary is a permanent payment. Permanent additional payment is a traveling allowance for commuting, and incidental additional payment is a performance bonus. |
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Benefits, in contrast to salary and other earnings, usually involve deductions. Benefit deductions are generally considered permanent or semi-permanent. An example of a permanent benefit deduction is a health insurance deduction. |
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Deductions |
All payroll deductions for benefit plans and other general payments, not including taxes. There are two types of deductions: benefit deductions and general deductions. |
Payroll withholdings other than benefits deductions and taxes that are either permanent or incidental (although the term general deductions is most often used in reference to the permanent type). Examples of permanent general deductions include loan payments, parking charges, cafeteria charges, charitable contributions, and union dues. An example of an incidental deduction is the settlement of a cash advance. |
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Payroll withholdings required for payment to the government. In Administer Salaries for the Netherlands, taxes aren't considered deductions or general deductions; they are just taxes. |
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
Setting Up Organization Foundation Tables
Setting Up Salary Plans, Grades, and Steps
Incidental |
Select if the payments or deductions cover a closed time period, with a one-time payment or deduction. |
Permanent |
Select if the payments or deductions cover a time period with an initial and final date, but where the final date is open and the payment or deduction continues indefinitely until the final date is closed. |
Both |
Select if the payments or deductions are incidental and permanent. |
WT, SS (wage taxes, Social Security) |
Select if the tax class for this earnings code is for wage taxes, Social Security premiums. |
WT, NoSS (wage taxes, no Social Security) |
Select if the tax class for this earnings code is for wage taxes, no Social Security premiums or doesn't apply. |
NoWT, SS (no wage taxes, Social Security) |
Select if the tax class for this earnings code is for no wage taxes or doesn't apply, Social Security premiums. |
NoWT, NoSS (no wage taxes, no Social Security) |
Select if the tax class for this earnings code is for no wage taxes or doesn't apply, no Social Security premiums or doesn't apply. |
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
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.
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
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. |
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. |
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. |
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. |
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.
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 HRare as follows:
Plan Type Numbers |
Plans |
10−19, 1A−1Z |
Health plans |
20−29, 2A−2Z |
Life insurance plans |
30−39, 3A−3Z |
Disability plans |
40−49, 4B−4Z |
Savings plans |
4A |
Employee stock purchase plans (ESPPs) |
50−59, 5B−5Z |
Leave plans |
5A |
Company car (European organizations only) |
60−69, 6A−6Z |
Flexible spending account plans (U.S. and Canada) |
70−79, 7A−7Z |
Retirement plans (U.S.) |
80−89, 8A−8Z |
Pension plans (U.S. and Canada) |
90−99, 9A−9Z |
Vacation buy/sell plans |
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 HRare as follows:
Plan Type |
Description |
Plan Type |
Description |
10 |
Medical |
4A |
ESPP |
11 |
Dental |
50 |
Sick leave |
12 |
Medical/Dental |
51 |
Vacation leave |
13 |
Major medical |
52 |
Personal leave |
14 |
Vision/Hearing |
53 |
Family Medical Leave Act (FMLA) leave |
15 |
Nonqualified medical |
5A |
Company car (European organizations only) |
16 |
Nonqualified dental |
60 |
Health care - FSA (Flexible Spending) |
17 |
Nonqualified vision |
61 |
Dependent care - FSA |
20 |
Life |
62 |
Legal - FSA |
21 |
Supplemental life |
65 |
Canadian health care |
22 |
AD/D |
66 |
Canadian retirement counseling |
23 |
Life and AD/D |
70 |
PERS |
24 |
Dependent AD/D |
80 |
Standard pension (Canadian) |
25 |
Dependent life |
81 |
Supplementary pension (Canadian) |
26 |
Survivor income |
82 |
USDB Pension Plan 1 |
30 |
Short-term disability |
83 |
USDB Pension Plan 2 |
31 |
Long-term disability |
84 |
USDB Pension Plan 3 |
40 |
401(K) |
85 |
USDB Pension Plan 4 |
41 |
Profit sharing |
86 |
USDB Pension Plan 5 |
42 |
Thrift |
87 |
USDB Pension Plan 6 |
43 |
IRA |
90 |
Vacation buy |
44 |
Capital accumulation |
91 |
Vacation sell |
45 |
U.S. Savings Bonds |
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
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.
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:
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.
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 HRsystem 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
Page Name |
Definition Name |
Navigation |
Usage |
DEDUCT_TABLE1_NL |
Set Up HRMS, Product Related, Benefits NLD, Deduction Table |
Specify, for all benefits deductions and general deductions, whether a deduction is permanent or incidental and how the deduction affects taxes. |
|
GENL_DEDUCT_TBL_NL |
Set Up HRMS, Product Related, Benefits NLD, General Deduction Table |
Set up general deduction data and define how nonbenefit deductions are calculated. These deductions include parking fees, union dues, or garnishments. (For benefit deductions, use one of the Benefits tables.) |
|
GDED_COM_TBL |
Set Up HRMS, Product Related, Benefits NLD, Company General Deductions |
Set up general deductions for your organization. |
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VNDR_ID1 |
Set Up HRMS, Product Related, Benefits NLD, Provider/Vendor Table, Vendor Information |
Define the benefit providers for your benefit plans. |
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BENEFIT_PLAN_TABLE |
Set Up HRMS, Product Related, Benefits NLD, Benefit Plan Table |
Set up a benefit plan definition. Also define providers, provider codes, and default deduction codes for all plan types. |
|
COVRG_CD_TBL |
Set Up HRMS, Product Related, Benefits NLD, Coverage Codes, Coverage Codes |
Create new coverage codes for your benefit programs. We recommend that you give the coverage code a numerical values of one through seven. Coverage codes should be ordered according to their complexity, with Employee being first. |
|
BEN_PROG_DEFN1 |
Set Up HRMS, Product Related, Benefits NLD, Benefit Program Table, Benefit Program |
Set up basic benefit program information. |
|
BEN_PROG_DEFN2 |
Set Up HRMS, Product Related, Benefits NLD, Benefit Program Table, Plan Type and Option |
Link plan types to the benefit program and add important information about plan types. |
|
BEN_PROG_DEFN3 |
Set Up HRMS, Product Related, Benefits NLD, Benefit Program Table, Cost |
Link a benefit program and plan type to rate and calculate rules. |
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BN_CLONE |
Set Up HRMS, Product Related, Benefits NLD, Clone Benefit Program, Clone Benefit Program |
Use the benefit program clone utility to identify a benefit program and have the system make an exact copy of that program with a different effective date. Give the duplicate program the same name as the original or rename it, which saves you time and effort when you create a new benefit program with a future effective date. |
See Also
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.
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.
Pay Frequency |
If you have a deduction that varies by pay frequency, indicate the amount deducted in each pay period for each pay frequency. For example, if there is a 50.00 EUR per month parking deduction for the company GBI, set up the deduction for the semimonthly pay group KN2 so that it applies only to the last pay period of the month. Rather than taking out 25.00 EUR each pay period, take the full 50.00 EUR at the end of the month. To set this up, indicate both the frequency and amount. |
Deduction Flat/Addl Amount (deduction flat /additional amount) |
If you select a deduction calculation routine that uses a flat amount, enter a flat amount or additional deduction amount. However, indicate the amount here only if it's the same for all employees within a pay frequency. |
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). |
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 HCM Application Fundamentals PeopleBook.
See Also
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 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 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
Contact Type |
Select the contact type: COBRA Administrator, HIPAA Administrator, or Plan Administrator. |
Contact ID |
Select the contact ID for the administrator. Contact IDs are defined on the Benef Administrative Contact (benefits administrative contact) page. |
See Also
Defining Benefits and Other Deductions
Setting Up Internal Administrative Contact Information
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
Covered Person Type |
Select the type of person for which you are setting parameters. Note. The coverage code controls for covered person type are used in PeopleSoft Benefits Administration. |
Minimum Number Covered |
Enter the minimum number of covered persons allowed. If you have selected the Total Covered Persons check box, this field is not editable. |
Maximum Number Covered |
Enter the maximum number of covered person allowed. If there is no limit to the number for this coverage code, enter 99. If you have selected the Total Covered Persons check box, this field is not editable. |
Access the Benefit Program page (Set Up HRMS, Product Related, Benefits NLD, Benefit Program Table, Benefit 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 eBenefits application pages.
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
Optn ID (option ID) |
As you define options for each of the offered plan types, the system automatically enters the option ID. |
Optn Type (option type) |
Each row must have an option type designation. The option type that you select determines the remaining fields that you must complete on the Plan Type and Option (BEN_PROG_DEFN2) and the Cost (BEN_PROG_DEFN3) pages Gen Deduction (general deduction): Allowed only for plan type 00, which you use for general deductions. Option: At least one O is required for each plan type except 01. Gen Credit (general credit): Used only in benefit programs that run in association with Benefits Administration. Program: Used only in benefit programs that run in association with Benefits Administration. Waive Optn (waive option): Used only in benefit programs that run in association with Benefits Administration. |
Benefit Plan |
Enter the code for a benefit plan that was defined on the Benefit Plan Table page. |
Covrg Code (coverage code) |
Indicate the level of coverage for health plan types (1x). This is a required field for those plan types. |
Deductn Cd (deduction code) |
Indicate how to handle deductions. |
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.
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.
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.
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.
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 HRsystem 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:
KN1—Monthly |
Employees who are paid monthly and share the same pay period, which ends on the last day of the month, may belong to the same pay group. Salaried employees at GBI are paid monthly. |
KN2—Semi-Monthly |
Employees who are paid semimonthly and share the same pay periods, ending on the 15th and last day of the month, may also belong to the same pay group. Exception hourly and hourly employees at GBI are paid semimonthly. |
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
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
Access the Holiday Schedule page (Set Up HRMS, Foundation Tables, Organization, Holiday Schedule).
See Also
Access the Pay Group Table - Definition page (Set Up HRMS, Product Related, Benefits NLD, Pay Group Table, Definition).
Pay Group Information
Retiree Pay Group |
Select only if you are adding a retiree pay group. This check box is informational only; however, it is recommend that you set up a special pay group for retirees because their processing requirements tend to differ from those of active employees. |
PI Configuration ID (payroll interface configuration ID) |
Select an ID for the pay group. The system uses this for the interface with the external payroll application. |
Deduction Priority |
Enter a deduction priority number for your pay group. |
Currency |
Select the appropriate currency. |
Employee Type Default |
Select the employee type default for the most common employee type within the pay group. When you set up a job record for an employee who is assigned to this pay group, this employee type is set by default to that job record. Values are: Excep Hrly (exception hourly): Employees who work a set number of hours each pay period. Enter exceptions to their schedules on their pay sheets. Hourly: Employees who do not work the same number of hours each pay period. Typically, hourly employees require positive time reporting. In this case, enter on their pay sheets the actual hours worked. Not Appl (not applicable): Select this option if the Employee Type Default field isn't applicable. Salaried: Employees whose earnings are based on an amount per pay period, rather than accumulated hours. You can still enter exceptions on their pay sheets. |
Frequency
Pay |
Select the frequency of pay for this pay group: Annual, Biweekly, Daily, Monthly, Quarterly, Semimonthly, or Weekly. |
Daily |
Select the daily frequency to be used by HR to calculate the daily rate that appears on the Compensation page of the Job Data component. |
Monthly |
Select the monthly frequency to be used by HR to calculate the monthly rate that appears on the Compensation page of the Job Data component. |
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.
Access the Pay Group Table - Calc Parameters page (Set Up HRMS, Product Related, Benefits NLD, Pay Group Table, Calc Parameters).
Paygroup Information
Earnings Types
Regular Hours Earnings Type |
Select the appropriate earnings code for the regular hours earnings type. |
Regular Earns Earnings Type |
Select the appropriate earnings code for the regular earns earnings type. |
OT Hours Earnings Type (overtime hours earnings type) |
Select the appropriate earnings code for the overtime hours earnings type. |
Holiday |
When the system creates paysheets and detects that a holiday falls within the pay period, it uses the earnings code that you enter here. If the holiday type on the Holiday Schedule page is Canadian, the system uses the holiday earnings code specified on the Pay Group Table - Definition page to set up the holiday earnings on the paysheet. |
Collective Labor Agreement |
Select the collective labor agreement: CAO Retail Trade, CAO Wood Industry, CAO Medical Staff, CAO Metal Industry, and CAO Transportation Industry. |
See Also
Associating a Regulatory Region with a Transaction
Access the Pay Run Table page (Set Up HRMS, Product Related, Benefits NLD, Pay Run Table).
See Also
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. |
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
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.
Age Range Low |
Select a low age to define this age range. The system won't accept a low-age range that exceeds the high-age range. |
Age Range High |
Select a high age to define this age range. The system won't accept a low-age range that exceeds the high-age range. |
Page Name |
Definition Name |
Navigation |
Usage |
LEAVE_PLAN_TABLE |
Set Up HRMS, Product Related, Benefits NLD, Leave Plan Table, Leave Plan Table |
Set up leave plans by entering basic plan data for your organization's leave plans. |
|
PENS_PLAN_TABLE_US |
Set Up HRMS, Product Related, Benefits NLD, Pension Plan Table, Pension Plan Table |
Enter basic plan data and define contributory rates for your organization's pension plans. |
|
BN_RATE_TABLE |
Set Up HRMS, Product Related, Benefits NLD, Benefit Rates. Benefit Rates |
Define Benefit Rate data for use in calculating benefit costs and premiums. |
|
COVERAGE_GROUP_TBL |
Set Up HRMS, Product Related, Benefits NLD, Coverage Group Table, Coverage Group Table |
Create coverage group codes that set the maximum total life and accidental death and dismemberment (AD/D) coverage for life insurance and AD/D insurance benefit plans. |
|
DEPEND_BENEF1 |
Workforce Administration, Benefit Information NLD, Maintain General Information, Dependent/Beneficiary Data, Name |
Enter dependent and beneficiary data before enrolling employees in specific benefit programs. Once you set up the data, you can enroll the dependent in multiple benefits. |
|
DEPEND_BENEF_ADDR |
Workforce Administration, Benefit Information NLD, Maintain General Information, Dependent/Beneficiary Data, Address |
Enter or update information about a dependent's address. |
|
DEPEND_BENEF2 |
Workforce Administration, Benefit Information NLD, Maintain General Information, Dependent/Beneficiary Data, Personal Profile |
Enter or update information about a dependent. |
Access the Leave Plan Table page (Set Up HRMS, Product Related, Benefits NLD, Leave Plan Table).
Leave Plans
Accrual Process Date |
The date you last ran a leave accrual calculation process for the displayed leave plan type and benefit plan. |
Accrual Calculation
Service Units |
The units by which you measure your employee's length of service: Hours, Months, or Years. |
Accrual Rate Units |
The unit by which the accrual rate is quoted. Accrual awards are always measured in hours, so valid values are Hours Per Hour, Hours Per Month, Hours Per Pay Period, Hours Per Week, and Hours Per Year. |
Award Frequency |
Indicates how often employees receive the leave accrual award. The values for this field are determined by the Accrual Rate Units field: If the accrual rate unit is Hours Per Hour, then the award frequency is Every Run. If the accrual rate unit is Hours Per Pay Period, then the award frequency is First Run of Pay Period. If the accrual rate unit is Hours Per Week, then the award frequency is First Run of Week. If the accrual rate unit is Hours Per Month, then the award frequency is First Run of Month. If the accrual rate unit is Hours Per Year then the award frequency is First Run of Year. |
Define the parameters for the system to automatically process and accrue employee leave time.
Special Calculation Routine |
Select if your company has programmed a special calculation method. |
Max Leave Balance (maximum leave balance) |
Enter the maximum leave hours that an employee can accrue for the leave plan. If there is no maximum, enter 99999. |
Service Calc at Year Begin (service calculation at year begin) |
Select to calculate leave hours according to length of service as of January 1 of the current year. Don't select this check box if you want to calculate leave hours according to the length of service as of the leave accrual process date. When performing this calculation, the system uses the service date in the employee's employment record. |
Max Leave Carryover (maximum leave carryover) |
Enter the maximum number of hours that an employee can carry from one calendar year to the next. The system accepts a zero to indicate that there is no carryover allowed. If there is no maximum, enter 99999. |
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.
Select if you pay employees for accrued leave time that they don't use. |
|
Select if employees can be paid at termination for a portion or for all time accrued. |
|
Percent to Pay at Termination |
If you selected the Pay at Termination check box, enter the percentage of pay that employees receive at termination. |
Allow Negative Balance |
Select if you allow employees to take more hours than they have accrued. |
Max Negative Hours Allowed (maximum negative hours allowed) |
Enter the maximum number of negative hours the employee is allowed. |
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.
Employment Month |
Enter the month that the new hire joins the company. |
Month Eligible |
Enter the month in which new hires become eligible for the leave benefit. |
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.
After Service Interval |
Using the accrual rate values that you defined, enter the interval of service after which an employee accrues leave time. |
Accrue Hours At |
Using the accrual rate values that you defined, enter the interval of service that an employee accrues for the after service interval. |
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.
After Service Interval |
Using the accrual rate values that you defined, enter the interval of service after which an employee accrues bonus hours. |
Award Bonus Hours |
Using the accrual rate values that you defined, enter the bonus hours the employee receives for the service interval that you specify. |
Access the Pension Plan Table page (Set Up HRMS, Product Related, Benefits NLD, Pension Plan Table).
US Pension Plans
Pension Type |
This field is for U.S. and Canadian functionality, not for operations in the Netherlands. |
Allow Contingent Beneficiaries |
This check box is for U.S. and Canadian functionality, not for operations in the Netherlands. |
Plan Yr Begins (Month/Day) (plan year begins [month/day]) and Plan Yr Ends (Month/Day) (plan year ends [month/day]) |
Enter the month and day when the pension plan begins and ends. A plan year normally ends the day before the next one begins. However, if you change your plan year, the row for the resulting short plan year has nonconsecutive beginning and end dates. Be sure to include a row for the short plan year. Failure to do this can cause calculation errors. For example, if the plan year changes from a July 1 to June 30 to a calendar year January 1 to December 31, beginning on January 1, 2004 you would have a short plan year July 1, 2003 to December 31, 2003. |
Contributory Plans
Voluntary Contributns Allowed (voluntary contributions allowed) |
Select if the pension plan allows voluntary contributions. There are no parameters for defining voluntary contribution rates; these are established on an employee-by-employee basis when you enroll employees in the plan. |
Special Accumulator Code |
Enter the special accumulator code, if applicable, used to track earnings for mandatory contributions that can be structured as a percent of earnings subject to pension withholding. |
Rates of Deduction |
Enter the contribution rates. You can have different rates above and below a threshold. For example, employees can contribute 2 percent of earnings up to 50,000.00 EUR and 3 percent of earnings above that. Enter the rate up to the threshold in the first Rates of Deduction field, the threshold in the next field, and the rate beyond the threshold in the final field. |
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. |
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.
Total Rate |
Enter the total cost of the coverage. Include any administrative fee that you may charge. |
Employee Rate |
Enter the rate charged to the employee and deducted through payroll. This is either after-tax or before-tax, depending on the deduction code definition. |
Employer Rate |
Enter the rate the employer pays to subsidize the cost of a benefit. This is either taxable or non-taxable, depending on the deduction code definition. |
Employee Percent |
Enter the employee's portion of contribution. If you've specified a percent, this represents the percentage of base that the employee pays for the benefit. |
Employer Percent |
Enter the employer percentage. This is the percentage of base that the employer contributes towards the benefits. |
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.
Before-Tax Rate |
Enter the portion of the employee's premiums that is withheld before tax. |
After-Tax Rate |
Enter the after-tax rate to reduce net pay. |
Non-Taxable Rate |
Enter the employer contribution with no taxable implications (not subject to tax). This contribution has no direct payroll effect. |
Taxable Rate |
Enter the employer contribution that is taxable. This contribution increases taxable gross (for tax purposes), but does not increase total gross (for pay purposes). |
Before-Tax Percent |
Enter the employee before-tax premium calculated as a percent of base. |
After-Tax Percent |
Enter the employee after-tax premium calculated as a percent of base. |
Non-Taxable Percent |
Enter the employer nontaxable contribution calculated as a percent of base. |
Taxable Percent |
The employer nontaxable contribution calculated as a percent of base. |
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.
Coverage Maximum |
Enter a maximum coverage amount for the coverage group. This amount applies to all the life and AD/D insurance benefit plans associated with the coverage group code and associated with one benefit program. |