Defining Retropay Earnings Elements:Standard RetroPay is the default RetroPay processing method for the Netherlands. It enables you to deal with any earnings changes made in the previous or current year, and any changes to tax and social insurance, impacting payroll calculations made in the current year. To carry out RetroPay processing, for every earnings element defined, you must set up two RetroPay elements, both with the skip rule Once Each Period assigned. These elements require the primary classifications Earnings, for changes in the previous year, and Retro Earnings, for changes in the current year. The same rule applies to imputed elements with the classifications Imputed Earnings and Retro Imputed Earnings. You set up RetroPay component usages to define how RetroPay will process the component. For each of these components you define an element time span to specify the start and end dates of the retro processing, and which RetroPay element applies for each time span.
Note: Each RetroPay element you create must have the skip rule, Once Each Period, assigned to it. Users in the Netherlands select a particular RetroPay method by running the concurrent program Enable Dutch RetroPay Method and selecting, either standard or replacement. The default entry is standard.
Only add assignments requiring RetroPay processing to the RetroPay set. The RetroPay process posts retro entries for each of the assignments in the RetroPay set. Note that these retro entries always include any changes to tax and SI information, even if there are no retrospective earnings entries.
Each pre-tax or pre_si and pre-tax deductions element processed by RetroPay must have a corresponding RetroPay element with a primary classification of Retro Pre-Tax Deduction or Retro Pre-SI and Pre-Tax Deduction. You must also define a RetroPay Component Usage and an Element Span Usage for the original element for each RetroPay method used, whether Standard or Replacement. All earnings elements require a corresponding RetroPay element and link.
For further information on the methods of RetroPay available for the Netherlands, see: RetroPay for the Netherlands.
For further information on how to enable your RetroPay method of choice, see:Enabling the Method of RetroPay.
For further information on how to override the Replacement RetroPay method for the Netherlands, see: Business Groups: Entering Dutch Business Group Information.
Attention: If you do not require the Replacement method of RetroPay, you do not have to enable the Standard method, as it is the default method.
Defining Retropay Earnings Elements:You enter element information in the Element window.
An example of defining an earnings element for Netherlands payroll appears in the notes below.
Define your salary element with the primary classification of Earnings.
Choose the Balance Feeds Control button. In the Balance Feed Control region select the appropriate element classifications from the list of values.
Note: Netherlands users, for example, select the classifications SI Income Subject to Standard Tax: Earnings and Subject to Standard Tax: Earnings.
Choose the Balance Feeds button to view the resulting balances feeding the element.
Note: You must now set up two retropay elements with the skip rule Once Each Period assigned.
Define the retropay element for the previous salary year, with the primary classification Earnings.
Note: Netherlands users, in the Processing region, click on the Skip Rule and select NL_ONCE_EACH_PERIOD from the menu.
Choose the Balance Feeds Control button. In the Balance Feed Control region select the appropriate element classifications from the list of values. Retropay elements for the previous year that are subject to tax must always be subclassified as subject to special tax, regardless of the tax category of the original earnings element. If an original earnings element is subject to standard tax, then the retropay element must be subject to special tax. This includes SI Income and SI Gross Salary elements that are subject to tax.
Note: Netherlands users, for example, select the classifications SI Income Subject to Special Tax: Earnings and Subject to Special Tax: Earnings.
Choose the Balance Feeds button to view the resulting balances feeding the element.
Save your work.
Define the retropay element for the current salary year, with the primary classification of Retro Earnings.
Note: Netherlands users, in the Processing region, click on the Skip Rule and select NL_ONCE_EACH_PERIOD from the menu.
Choose the Balance Feeds Control button. In the Balance Feed Control region select the appropriate element classifications from the list of values. Retropay elements for the current year, subject to tax, must always be subclassified the same as the tax category of the original earnings element. If an original earnings element is subject to standard tax, then the retropay element must be subject to standard tax also. This includes SI Income and SI Gross Salary elements that are subject to tax.
Note: Netherlands users, for example, select the classifications SI Income Subject to Standard Tax: Earnings and Subject to Standard Tax: Earnings.
Choose the Balance Feeds button to view the resulting balances feeding the element.
Save your work.
You can now set up your retropay components and element span usages.
Setting Up Retropay Component Usages:Retropay component usages assign the components to the salary elements you created, ensuring all the elements recalculate with the latest values.
Query your defined salary element, in the Element window.
Select the Recalculation tab, and check the Retro Components button.
In the Retropay Components region of the Retropay Element window, choose the component field, and an appropriate component from the list of values.
Note: Netherlands users select the Retro Component Standard, or Replacement as required.
Select the Reprocess Type. If you select Static, then Retropay will not process any changes to the element when running the relevant component. Opting for the Reprocess Type ensures the element changes process.
Note: Netherlands users select the Reprocess Type, Reprocess. Dutch Retropay processes the period of change, and not the nature of change, such as a correction or backdated change. As a result, the whole retro period reprocesses.
Save your work.
You can now enter the element time spans.
Example of a standard retropay component set up for an earnings element
| Element | Component Name | Reprocess Type | Comments |
|---|---|---|---|
| User Defined Element | Standard | Reprocess | Retro Earnings |
Example of a replacement retropay component set up for an earnings element
| Element | Component Name | Reprocess Type | Replace Run | Use Override Dates |
| User Defined Element | Replacement | Reprocess | Yes | Yes |
Setting Up Element Span Usages for Earnings Elements:The element time span usages defines the start and end dates for retropay processing. Most elements have the standard time span of Start of Current Year to End of Time already assigned, to cover any changes made in the current year. The exceptions for the Netherlands are standard taxable income and standard tax deduction, which include the timescales Start of Current Year to End of Previous Quarter, and Start of Current Quarter to End of Time, to cover student taxation. For each earnings element, or imputed earnings element with a defined retropay component usage, you must define two element span usages. These element span usages cover the earnings for both the current and the previous year, defining not only how far back processing should cover, but also up to where a particular retropay element carries forward the retro changes. You must define your retropay elements and components before defining the element time spans.
Set up the Element Span Usages in the Retropay Elements window.
Query your defined salary element in the Element window.
Select the Recalculation tab, and check the Retro Components button.
In the Retropay Elements region, select the appropriate time spans from the From and To fields, to define the time period the retropay element is covering.
Note: In the Time Spans fields, for each earnings element or imputed earnings element with a standard retropay component usage defined, you must define the element span usages for both the current and previous years. For example, for the retropay element, Retro Salary Previous Year, you define the time span from Start of Time to End of Previous Year. For each earnings, or imputed earnings element with a replacement retropay component defined, you must define the element span usage for the current year. You can set up a second time span to cover the previous year, if required.
Select the retropay elements you created from the Retropay Element field.
Save your work.
Example of earnings element span definitions for both standard and replacement components
| Element | Component | Span From | Span To | Retropay Element |
|---|---|---|---|---|
| User Defined Element | Standard | Start of Time | End of Previous Year | Retro Earnings Previous Year |
| User Defined Element | Standard | Start of Current Year | End of Time | Retro Earnings Current Year |
| User Defined Element | Replacement | Start of Current Year | End of Time | Retro Earnings Current Year |
| User Defined Element | Replacement | Start of Time | End of Previous Year | Retro Earnings Previous Year |