To enter Dutch SI type information:You can set up many different SI (Social Insurance) types for the SI provider depending on the different types of employment in your enterprise. The information you set up here is used in the process of social insurance calculations.
Suggestion: You can set up information for each mandatory social insurance type for the same SI provider and assign it to your internal organization. Then you can select the SI provider as the primary provider for your internal organization with the SI classification of All Mandatory Insurances. This setup ensures that all employees assigned to the internal organization inherit the mandatory social insurance information.
You enter social insurance type information using the Organization window.
To enter Dutch SI type information:Query the organization if it does not already appear there. In the Organization Classifications region, select Dutch UWV Organization, choose Others and select Dutch SI Type.
Select the dates for the period of time the SI type is valid for the SI provider organization.
Note: When you select the start and end dates for an SI type, ensure that for the same SI type, the information does not overlap for any period of time. For example, if you set up information for the SI type of ZW for the period 01-Jan-2001 to 31-Dec-2001, you must not set up SI information using the same SI type within this period of time. Otherwise this could lead to inconsistent payroll calculations for an employee's assignment during a payroll run.
Enter the name for the SI type.
Select the type of social insurance.
Select the basis calculation rule. Social Insurance Income and Total Gross are the only valid basis calculation rules. Hence you must choose either of these two basis calculation rules. The basis calculation you select here determines the type of SI income to be used in the calculation of the SI contributions.
Enter the employee and employer contribution percentages as the standard SI contribution rates for the SI calculations.
Effective after 31-Dec-2012, the employee and employer contribution percentages for senior SI contribution rates do not impact SI calculations and hence are non-mandatory.
Effective after 31-Dec-2012, the employee and employer thresholds do not impact SI calculations and hence are non-mandatory.
Effective after 31-Dec-2012, the maximum salary figure as a daily amount does not impact SI calculations and hence is non-mandatory.
If you enable Law Walvis, as of 2013, you need to create a user table with periodic amounts for the maximum salary for SI. See: Additional Implementation Steps for Netherlands, Oracle HRMS for Netherlands Supplement. The created period must be the same as the payroll period. Ensure that daily amounts are stored for calculation of SI during hire and termination within the payroll period. In specific cases, the application calculates as follows:
For new hires and terminations within the payroll period, the application adjusts the maximum SI wages to meet the legislative requirements. For these calculations, the application uses the total number of days in the period on which employee belongs to the payroll rather than the number of days the employee actually worked. For example, if an employee starts working on 20th February 2006 (Monday) for three days a week (Monday, Wednesday, Friday), then the employee will be paid for 4 days (Monday, Wednesday, Friday, Monday) in February. However, as the employee is on the payroll for a total of 7 week days in February, the application uses 7 days for calculation of maximum wages.
For employees with the tax code for anonymous employees (tax code 940), the application sets the maximum salary to SI income. However, when an employee's status changes, the application calculates maximum salary retrospectively up to the employee's hire date (but not further back than the start of the current year). In addition, the application adjusts social insurance contributions retrospectively.
Select the calculation code. This code indicates the calculation method for the contribution calculation. Increasing SI Base Calculation and Adjusted Increasing SI Base Calculation are the only valid calculation methods. Hence you must choose either of these two calculation code.
Note: If you enable Law Walvis, then only the Increasing SI Base Calculation method applies.
Use the Adjusted Increasing SI Base Calculation method, which is based on the Increasing SI Base Calculation, if you have employees who, either simultaneously or successively, work in different Sector and Risk Group combinations within the same payroll period.
If you choose Increasing SI Base Calculation as the method, the application includes the values accumulated in previous payrolls in the current year. However, for calculating the maximum salary, this method uses the cumulative year-to-date values of the existing balances.
Note: Any non-SI absences, for example, absences without leave or explanation, reduce the maximum SI salary.
Select the calculation method for calculating the number of SI days in a payroll period. Select Law Walvis to enable Law Walvis calculations in the application.
Note: The method you select here determines the calculation method for deriving SI days for employees within this organization. Ensure you use the Law Walvis method for all the mandatory SI types from January 2006 to meet the legislative requirements.
For more information on the different calculation methods see: Methods for Deriving Social Insurance Days and for information on setting up SI days see: Setting up Social Insurance Days
Effective after 31-Dec-2012, the employer contribution taxable income does not impact SI calculations and hence is non-mandatory.
Effective after 31-Dec-2012, the employee contribution gross or net does not impact SI calculations and hence is non-mandatory.
Choose whether the application adjusts the SI days as part of an end of year adjustment in the Day Adjustment field. Select Yes to adjust the SI days to the real SI days value, and select No to keep the average SI days value.
Warning: This adjustment can be overridden at the employee assignment level for the SI classification.
Choose whether the application adjusts the SI contributions as part of an end of year adjustment in the Contribution Adjustment field. Select Yes to use the normal cumulative recalculation method, and select No to use whatever method has been chosen.
Warning: This adjustment can be overridden at the employee assignment level for the SI classification.
Save your work.