Multiple simultaneous employments (Payroll)
The default in Profit is for an employee to have a maximum of one ongoing employment relationship with his/her employer. Profit, subject to certain conditions, also supports the use of multiple employments.
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Description
The Multiple employments functionality is meant for organisations in which employees can have multiple simultaneous employments, such as hospitals or healthcare institutions. For example, it could happen in a hospital that an employee works in one department as a nurse and in another as an administrative assistant. In this situation there are two simultaneous employments because there is overlap in the term of validity (start and end dates) of both employments. As a result, the employee has multiple contracts, salaries and jobs at the same time.
Note:
First read the Profit HRM Help for a description of the setup of multiple employments, the conditions governing the use and management of the labour relationship, employments and contracts for an individual employee.
Fiscal implications
Simultaneous employments result in multiple taxable income relationships and employments in terms of social security (particularly the 'WW’ and ‘ZW’) in relation to the calculation of the daily wages.
The ‘Loonheffing’ is determined as follows for employees with multiple employments:
- For each employment, the income tax table is consulted to determine the ‘Loonheffing’.
- One of the employments is the main employment. Profit applies the ‘Loonheffingskorting’ to the main employment, but not to the additional employments. If you want to calculate the ‘Loonheffingskorting’ reduction for a different employment, then you must designate it as the main employment.
The final calculation takes place via the 'IB’ declaration performed by the employee him/herself.
Profit always calculates the addition of the company car on the basis of the main employment.
Changing the insurance obligation
The agency’s insurance obligation associated with the labour relationship of the last employment is used. This can be important if, for example, an employee is hired as a regular employee after having worked as a trainee.
‘ZVW’ for multiple employments
For this, configure the tax authority agency correctly for each employment. AFAS cannot give you any advice in this. You can submit any questions on this to the tax authority.
Procedure
- Labour relation and wage component allocation
In the wage calculation Profit calculates certain things by default for each labour relationship and different things for each employment.
- Calculation by employment
Profit calculates the wage components that have been added for the employee for his/her main employment, unless you specified a different employment for a wage component.
- Not pay the holiday allowance at the end of an additional employment
If you use the Multiple employments functionality, the payment of the holiday allowance works differently.