Oracle Payroll for the Netherlands enables you to carry out multiple assignment processing for both Social Insurance and Taxation, enabling processing to take place for employees who have more than one assignment within a payroll.

Multiple Assignment Processing with Social Insurance

• You aggregate multiple assignments for assignments on the same payroll and, in the case of social insurance, only for those who also have the same social-insurance type.

• If an employee has multiple assignments across different employers, you must assign a separate payroll for each assignment with a different employer.

• If an employee has multiple assignments, the selected maximum SI days method must be the same across all assignments. This rule is not enforced, but ignoring it could lead to inconsistent payroll results.

• Do not perform a supplementary run for social insurance calculations where an employee has multiple assignments, as it could lead to inconsistent payroll results.

• Set the method for deriving Maximum SI Days to Payroll Period for any secondary assignments.

  Note: If you enable Law Walvis, the application does not use the existing methods for deriving maximum SI days. Instead, the calculations use the period amounts for SI thresholds and maximum wages.

Social Insurance Aggregation

Oracle Payroll aggregates Social Insurance in the order of Primary Assignment, followed by Secondary Assignments in order of Assignment ID. If the payroll is the same, the application ensures the total SI days used for the assignments processed so far does not exceed the maximum SI days for the current assignment being processed. Assignments process in sequence, with the SI days totalled as each assignment is processed. This system determines the number of SI days available for the next assignment. The Threshold and Max SI Salary are also calculated, with the values not used carried over to subsequent assignments.

Examples of Multiple Assignment Processing in Social Insurance

Processing the first assignment.

Using Oracle Payroll to process multiple assignments enables you to carry over the Threshold and the Max SI Salary values not used in the first assignment, over to the next one. In this example in the table below, the SI Income (1000) is subtracted from the Total Threshold (1500) and the Max SI Salary (3000). This results in values not used - Threshold (500) and Max SI Salary (2000). These values carry over to Assignment 2, and are added to the Total Threshold and Max SI Salary, where the same deductions as in Assignment 1 take place.

Assignment 1:

Subtract the SI days used for the first assignment from the maximum SI days derived for the second assignment. This provides the available SI days for the second assignment. Carry any remaining threshold or maximum SI salary from previous assignments to the next assignment. See the table below.

Assignment 2:

Continue the same process from Assignment 2, until there are no more SI days available. See the table below.

Assignment 3:

Multiple Assignment Processing with Taxation

• You aggregate multiple assignments if an employee has assignments on the same payroll.

• If an employee has multiple assignments across different divisions, assign a separate payroll for each assignment with a different division.

• Do not perform supplementary runs for tax calculations where multiple assignments exist, as it can lead to inconsistent payroll results.

Taxation Aggregation

• Oracle Payroll aggregates tax in order of assignment number, for assignments on the same payroll. Calculating tax deductions for the first assignment is carried out normally, but when processing the next assignment, taxable income from the previous assignment is added to the taxable income of the current assignment. Deductions are calculated on these combined totals. Once calculated, the deductions from the previous assignment are subtracted. This process is repeated for all subsequent assignments.

Processing Student Taxation

• When processing student taxation, the application uses the taxable income for the quarter to date, to determine the annual salary. If multiple assignments exist and student taxation applies, the quarterly taxable income for any previous assignments is added to the quarterly taxable income for the assignment being processed. You need a total taxable income before calculating the tax. Once the tax is calculated, the quarterly deductions for all previous assignments is subtracted from the total deduction, along with the quarterly deduction for the current assignment.

Processing the Beneficial Rule

• Processing the beneficial rule involves adding the standard taxable income to the special taxable income. The standard tax deduction is calculated from this combined amount to determine if the tax payable is less than the total if the standard and special rate deductions were calculated separately.

• If the beneficial rule applies, and your employee has multiple assignments, the standard taxable income for any previous assignments is added to the standard taxable for the current assignment being processed. The same calculation is performed if an employee with multiple assignments has special taxable income.

• Once the tax deductions are calculated, subtract the standard and special rate tax deductions for any previous assignments from the total deduction. Compare the result to the individual deductions, in order to determine whether the beneficial rule should apply.

• Both the beneficial rule and student taxation can apply to an employee. In this case the standard taxable income for the quarter, including all the previous assignments is added to the special taxable income for the period, for all previous assignments to derive the taxable amount. Once the tax deduction is calculated , subtract the quarterly standard deductions for any previous assignments from the total deductions, along with the period to date special rate deductions for any previous assignments.

IZA Private Health Insurance Multiple Assignment Processing

Ensuring Reporting Information is Correct When You Adjust Multiple Assignments with the Same Employer.

This table explains what happens when:

• A part time adjustment to the income of an assignment is made because the working hours are deemed to be less than 50% of the full time hours.

• It is discovered, when processing a subsequent assignment, that an adjustment should not have been made to the income of the first assignment, as the total working hours for both assignments is greater than 50% of the full time hours.

IZA Multiple Assignments