Enterprise Structure Setup for HCM for the Netherlands: Points to Consider

Use the setup tasks and define legal entities, legal reporting units, legal authorities, legal addresses, and reporting establishments. The Dutch localization supports both the two-tier and the three-tier employment models. Consider the following key points as you design and create enterprise structures for Oracle

Legal Jurisdictions, Legislative Category, and Legal Authorities

Use the Manage Legal Jurisdictions task to create your own legal jurisdiction to define the tax office. This legal jurisdiction you create is associated with the legal authority and uses the tax registration number as the legal reporting unit registration code.

The Wage Tax legislative category is predefined. Use this legislative category when you define the legal authority for a tax office.

Legal Entities, Legal Employers, and Payroll Statutory Units

When you set up legal entities, you can identify them as legal employers and payroll statutory units (PSUs). This makes them available for use in Oracle Fusion HCM.

For a Dutch organization model, you must define a legal entity as both a legal employer and a PSU. A one-to-one relationship must exist between the legal employer and the PSU.

Tax Reporting Units, Reporting Establishments, and Registrations

When you create a legal entity and identify it as a PSU, the application automatically creates a default tax reporting unit (TRU). You can create additional TRUs, if required.

A TRU is used to group employees for the purpose of tax and social insurance reporting. A reporting establishment is an organization that's used for statutory reporting other than tax and social insurance reporting. You must define every TRU as a reporting establishment for the Dutch organization.

The registration with the identifying jurisdiction is automatically created for the default TRU.

You must register every TRU that you create with the tax office using the tax registration number.

Tax Reporting Unit Details

Use the Manage Legal Reporting Units HCM Information task to specify additional information for the TRU. Specify the Wage Report details and Sickness Report details in the TRU information.

Tax Reporting Unit Calculation Card

Use the Manage Legal Reporting Unit Calculation Records task for the TRU-level calculation card.

Use this calculation card to manage data at the TRU-level statutory deductions and taxes specific to the TRU. You can create only one calculation card at the TRU-level. On this card, you can specify information that's specific to the employer, such as:

• Sector fund contribution

• WGA contribution rate

• Wage tax subsidies

• Tax calculation settings