What is work cost regulation in SAP PY-NL - The Netherlands?

SAP Term: work cost regulation

• Component: PY-NL

• Component Name: The Netherlands

• Description: This regulation allows legal persons JUPERs to pay their employees a net allowance lump sum within the free fiscal space, without specifying the allowances, and using the various regulations valid for net allowances. The responsible authority for this law is the Dutch Tax Office Belastingdienst. This regulation is valid from January 01, 2011.

Smart SAP Assistant

• Key Concepts: 
  Work Cost Regulation (WCR) is a feature of the SAP Payroll module for The Netherlands (PY-NL) that allows employers to manage their payroll costs. It enables employers to set a maximum amount of payroll costs for each employee, and then automatically adjust the payroll cost when the employee’s salary changes. This helps employers to stay within their budget and ensure that their payroll costs are in line with their business objectives. 
  
  How to use it: 
  To use WCR, employers must first set up a maximum payroll cost for each employee. This can be done in the SAP Payroll module by entering the maximum amount in the “Maximum Payroll Cost” field. Once this is done, the system will automatically adjust the payroll cost when the employee’s salary changes. 
  
  Tips & Tricks: 
  When setting up WCR, it is important to remember that the maximum payroll cost should be set at a level that is realistic and achievable. It should also be adjusted periodically to ensure that it remains in line with the employer’s business objectives. 
  
  Related Information: 
  For more information on Work Cost Regulation, please refer to SAP’s official documentation on PY-NL The Netherlands.