Examples of Organization Models for the Netherlands
These examples illustrate different models for the Dutch organizations in the Oracle Fusion HCM. Each example includes a legislative data group (LDG). LDGs aren't an organization classification, but are included in the example to show how they're associated with the payroll statutory unit (PSU).
Single Company with Single Payroll Statutory Unit and Single Tax Reporting Unit
Here's an example that illustrates a fictional company, InFusion Netherlands, with a single sector fund and single tax office registration. It's a registered company with the corporate head office in Amsterdam. Tax calculation and sector fund management are managed through a single tax reporting unit (TRU).
You can use the basic setup for this model involving these steps:
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Create an InFusion Netherlands organization with the Enterprise classification.
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Create a Dutch LDG.
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To define the tax office, create a legal jurisdiction and set the territory to Netherlands. Use the Wage Tax legislative category when you define the legal authority for the tax office.
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Create a legal entity for InFusion Netherlands. Designate is as both legal employer and PSU.
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Select the TRU that was created when you defined the legal entity and designate it as a reporting establishment.
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Use the unique tax registration number to register the TRU with the tax office.
Note: The sector fund, wage tax, and deduction information are stored in the TRU created for this legal entity. -
Use the TRU deduction card to define a single sector fund for the TRU.
Single Company with Single Payroll Statutory Unit and Multiple Tax Reporting Units
In this example, there's a a fictional company InFusion Netherlands with a single PSU with tax office registrations for multiple purposes. All the offices share a single payroll. Each office is registered separately with the tax office using a unique tax registration number. The manufacturing and research offices have multiple sector fund contribution rates.
Setup for this model involves the same steps as in the previous example. In addition, it's possible for a legal employer to have multiple tax registration numbers for different purposes.
In this example, you must create separate TRUs for the Head Office (Sales), Manufacturing, and Research office. Register each TRU separately with the tax office using its unique tax registration number. For the Manufacturing and Research offices, create multiple sector fund contribution components such as Sector Fund1 and Sector Fund2. Select Sector Fund1 as the default for each office.