Create Automatic Statutory Deductions and Reporting Calculation Card for Netherlands
If the value of your country setting in the Manage Features by Countries or Territories page is either Payroll or Payroll Interface, then the application automatically creates a Statutory Deductions and Reporting Card upon completion of the new hire process.
Use the Calculation Cards task in Payroll to view and update the card as needed. The automatically-created card contains the most commonly used values for the key fields.
Here are some important aspects of the automatic card creation process:
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The personal calculation card is created automatically for all payroll relationships of type Standard. The standard payroll relationship applies to the person types Employee and Nonworker (paid).
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A tax reporting unit (TRU) calculation card must exist for the personal calculation card to be automatically created. Use the Manage Legal Reporting Unit Calculation Records task to do this.
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You must have defined the element eligibility for the element Tax and Social Insurance for the Dutch legislative data group (LDG).
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You must have specified the TRU in the Employment Information page while hiring the employee.
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If additional assignments exist, the card isn't updated automatically nor is a new card created. If required, you must create a new card (for example, for a different TRU) or update the existing calculation card with the assignments, provided the same tax and social insurance rules apply to the assignments.
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The associations for the assignments are created only if the payroll is specified during the new hire process. If assignments are specified during the new hire process, then association details are created on the card, linking them to the automatically created components.
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When an employee is rehired on an existing payroll relationship, the existing calculation card can be reactivated for the employee.
Social Insurance Calculation Group
The social insurance calculation group has these component and component details:
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Social Insurance calculation component - Social Insurance calculation component details:
|
Field |
Default Value |
|---|---|
|
WAO, IVA, and WGA Insured |
Selected |
|
WAO Discount Eligible |
Not Selected |
|
WW Insured |
Selected |
|
ZW Insured |
Selected |
|
ZVW Insured |
K - Insured, standard employer rate |
|
Tax and SI Work Schedule |
5 days a week |
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Social Insurance calculation component - Subsidies and Discounts component details:
|
Field |
Default Value |
|---|---|
|
Wage Tax Discount |
Selected |
|
Single Senior Discount |
Not Selected |
|
Employer Discount |
Blank |
|
Employer Discount Start Date |
Blank |
|
Employer Discount End Date |
Blank |
|
Holiday Coupon Days |
Blank |
|
Temporary Worker End of Income Relations |
Blank |
|
Wage Contains AOW Allowance - Single People |
Not Selected |
|
Wage Contains WAJONG Allowance |
Not Selected |
|
Employee Loans |
Not Selected |
|
Transportation Provided by Employer |
Not Selected |
|
Incidental Income Decrease |
Blank |
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Sector Fund WW component: This value is derived from the default sector fund specified in the TRU calculation card.
Taxes Calculation Group
The taxes calculation group has the following component and component details:
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Special-Rate Tax component and component details:
|
Field |
Default Value |
|---|---|
|
Special-Rate Annual Income |
Blank |
|
Use Beneficial Rule |
Selected |
|
Individual Percentage Override Date |
Blank |
-
Tax calculation component and Standard-Rate Tax component details:
|
Field |
Default Value |
|---|---|
|
Income Code |
Public Sector - 11 - Wage public servants, PS law 1929 Private Sector - 15 - All other wage employees. |
|
Tax Type |
0 - Standard tax |
|
Tax Table |
1 - White table |
|
Payroll Period |
2 - Monthly |
|
Tax Code |
Blank |
|
30% Rule |
Not Selected |
|
Student Taxation Rate |
Not Selected |
|
Daily Tax Table Applied |
Not Selected |
|
Temporary Tax Discount |
Blank |
Wage Report Information Calculation Group
The calculation group for Wage Report Information consists of Wage Report Information component and component details:
|
Field |
Default Value |
|---|---|
|
No Private Use of Company car |
Blank |
|
Unemployment Public Sector - Old Arrangement |
Not Selected |
|
Contract Type |
Derived from the contract type that's specified during the new hire process. If no value was specified, the default value is Unlimited contract. |
|
Employment Type Code |
Depends on the Income Code specified in the Tax component details. If Income Code is 11, then 13 - civil servant or ABP. If Income Code is 15, then 01 - Contract - labor relation. |
|
Influence Code |
Blank |
|
Temporary Worker Labor Code |
0 - Unknown or not applicable |
Associations and Association Details
The application automatically associates the calculation card with the default TRU of the reporting establishment to which the employee is attached. Associations are also automatically created between all the employment assignments created during the new hire and the default sector fund for the TRU. You can associate the calculation card and all the assignments for the employee with only one TRU.
Autoindirect Elements, Element Eligibility, Element Entries
Autoindirect elements are predefined for triggering social insurance and tax calculations. The element eligibility for these autoindirect elements must be defined during implementation. This is a one-time activity.
The element entry for the Tax and Social Insurance element is created automatically when the card is created, provided that eligibility has been defined for those elements and the employee meets the eligibility criteria.
Edit the Calculation Card
Once the card is created, you can review and update the card as needed.
In the Special-Rate Tax component details, you can select the Enterable Value on Calculation Cards tab to define employee-specific values for special-rate tax. You can specify values for individual percentage, or you can specify the amount for previous year annual income:
|
Field |
Default Value |
|---|---|
|
Name |
Blank - You can select either Individual Percentage or Special-Rate Previous Year Income. |
|
Effective Start Date |
Current Date |
|
Effective End Date |
Blank. The end date must not be later than the last date of the current tax year. |
|
Range Name |
Individual Percentage |
|
Item to Override |
Rate |
|
UOM |
Blank |
|
Periodicity |
Blank |
|
Rate |
Blank |
|
Amount |
Blank |