Overview of Statutory Deductions and Reporting for Netherlands
Statutory Deductions and Reporting cards store all the information required to accurately compute tax contributions for an employee.
It also stores the social insurance contributions of their employer, including standard-rate tax codes and details of any tax discounts to which the employee is eligible, special-rate income, and sector fund details. It includes information used in the statutory wage report and in the digital absence report. One or more Statutory Deductions and Reporting card must be created for each employee. Additional cards need to be created if employees have multiple assignments in different TRUs and/or have different tax rules for each assignment.
Considerations and Prerequisites
If the product license is set to Payroll or Payroll Interface, Statutory Deductions and Reporting cards are automatically created when a new employee is entered using the New Hire task with a set of default values, some of which are specified at TRU level.
TRU association and association details for the card are created automatically when the Reporting Establishment and payroll are selected during the hire process. The payroll frequency for the assignment must also match the payroll frequency of the TRU that is defaulted from the reporting establishment
However, there may be cases where this information must be loaded in bulk:
During data migration:
If HCM Data Loader is used to migrate employee records a default Statutory Deductions and Reporting card is automatically created. Default value may need to be updated.
Ongoing bulk updates:
- Bulk loading of new hire data: If you have to do a mass upload of New Hire information, a default Statutory Deductions and Reporting card may be automatically generated (if the new hire records are created through HCM Data Loader). In this case, you need to update the default card with the correct information.
An Employer Deduction Information card must exist for each TRU with which the Statutory Deductions and Reporting card is associated.
You must create element eligibility for the Tax and Social Insurance Calculations element for each Legislative Data Group (LDG) that is used for entering personal calculation cards. Do not check the Automatic entry checkbox while creating element eligibility. It is recommended to have a good understanding of the Statutory Deductions and Reporting card and the information it contains prior to attempting mass upload as it has a direct impact on statutory deductions and reporting. For further information, see Oracle Fusion HRMS (Netherlands): Payroll Implementation and Functional Considerations (Doc ID 1572711.1).
Statutory Deductions and Reporting Card Record Types
The Statutory Deductions and Reporting card is uploaded with HCM Data Loader using the Global Payroll Calculation Card business object. This generic object hierarchy provides record types to support the various country-specific requirements.
| Component | Functional Description | File Discriminator |
|---|---|---|
| Calculation Card | Defines the calculation card type and the employee assignment that it captures information for. | CalculationCard |
| Card Component | Used to group and segregate data required by the calculation card. The following sections describe the card components applicable to this calculation card and the child records that are required for each card component. | CardComponent |
| Component Detail | Provide a component detail record for each flexfield context required by each card component. | ComponentDetail |
| Calculation Value Definition | Allows the creation of value definitions so that overriding values can be specified on the card component. | CalculationValueDefinition |
| Enterable Calculation Value | For each calculation value definition an overriding value can be specified using the Enterable Calculation Value record type. | EnterableCalculationValue |
| Card Association | Associates the calculation card with the Tax Reporting Unit the employee reports to. | CardAssociation |
| Card Association Detail | Associates card components with the employee’s assignments. | CardAssociationDetails |
Statutory Deductions and Reporting Calculation Card Hierarchy
The hierarchy of calculation card components applicable Statutory Deductions and Reporting card are described in this diagram:
A separate topic follows to describe how to provide data for the calculation card record and each card component.