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:

Term	Definition
Salary Administration	The functionality that ensures that all of the information about payments and pay deduction for employees is included within your HR system. Third-party systems need this information to process your organization's payroll.
Pay Groups (or Salary Groups)	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.
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.
Earnings	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.
Benefits	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.
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.
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.
Taxes	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.