Frequently asked questions about the Incomes Register

On this page, we have compiled the answers to frequently asked questions about the Incomes Register. The questions are grouped by topic.

Authorities and certificates

What information does a new accounting firm see from the Incomes Register and can the new accounting firm correct reports that were submitted earlier?
  • An authorisation concerns the information about a specific company or individual.
  • The change of an authorised party will not restrict the access rights; a new accounting firm can view all earnings payment reports related to the assignor, in other words, all reports submitted by the previous accounting firm.
  • When the authorisation is terminated, the authorised party will no longer be able to access information about the company or reports submitted on behalf of the company.
  • The new accounting firm can maintain and edit all of the assignor’s earnings payment reports, also those which were created by the previous accounting firm.
    Information provided by the company will be retained in the Incomes Register for 10 years. The information can be corrected at any time during this storage period.
How is the authorisation and submission of reports handled for a foreign company?

A Finnish employee can set up a Katso ID on behalf of a foreign employer if the employee has the right to sign for the company. The Katso ID can be set up online >

If the employee does not have the right to sign for the company, the foreign company (or an individual with the right to sign for the company) can issue a Power of Attorney that authorises a Finnish employee to set up a Katso ID. In addition to the Power of Attorney, the company must also provide a Trade Register extract stating the names of those with the right to sign for the company.

If a foreign employer wishes to set up a Katso ID itself, and does not wish to issue a Power of Attorney to a Finnish employee, the relevant instructions can be found here >  (Setting up a Katso ID when you don’t have a Finnish personal identity code)

Submitting reports to the Incomes Register

What information will be reported to the Incomes Register?

The information that is reported to the Incomes Register includes wages and salaries, fringe benefits, bonuses, work compensation and other earnings. Tax-free and taxable reimbursements of expenses must also be reported. There is no monetary (euro) minimum or age minimum for information reported to the Incomes Register, but rather all earnings information must be reported regardless of amount or the age of the income earner. The information must be reported for all earnings paid after 1 January 2019.

The employer or other payer reports the paid wages and other income earned with a separate earnings payment report for each income earner. Each report will provide the data of a single payment made to a single income earner. However, several different income types, such as monetary wages, fringe benefits and kilometre allowances, can be reported for the same income earner on the same report.

How do I submit reports to the Incomes Register?
Reports can be made to the Incomes Register in three ways:
  1. Via a technical interface -> Automated reporting from the employer’s own payroll system:

    • The payroll system must be compatible with the Incomes Register, which means that all data must be in XML format and the income type codes must be compatible.
    • No separate log-in process is required for the submission of payroll information. The connection to the Incomes Register is generated by means of a certificate that is applied for in advance from the Incomes Register.

       

  2. Through the e-service

    • Log in through the Incomes Register website (https://www.vero.fi/en/incomes-register/) and authenticate with your personal online banking codes, a mobile certificate, or a FINeID certificate for organisations or private citizens.
    • Logging in requires an authorisation provided through either the Suomi.fi or Katso service.
    • Reports can be submitted:
      1. Using an upload service in which the information is transferred as an XML formatted file.
      2. Using an online form in which the necessary information is entered manually.

         

  3. By paper form (under special circumstances only)
    • Special circumstances can be regarded as situations in which the electronic submission of the information could not reasonably be required, such as when a natural person, a decedent’s estate, or a temporary or foreign employer does not have the possibility to submit information electronically.
    • The form is available online at Vero.fi >: https://www.vero.fi/en/incomes-register/.

It is also possible to continue to use the Palkka.fi payroll calculation service, whereby the information will automatically be transferred to the Incomes Register.

Where can I find reports that have been submitted to the Incomes Register?

Log into the Incomes Register’s e-service and go to ‘Submitted Reports” or to ‘Subscriptions’. All the submitted reports can be found there.

How does a TyEL contract employer submit earnings payment reports using the e-service of the Incomes Register?

If you have a currently valid TyEL pension insurance policy (that is, if you are not a temporary employer), do as follows:

  1. For the Payer type data:
    • Corporate customer: Leave all items empty.
    • Private customer: “Household” is already selected, do not select anything else in addition.

       

  2. For the Insurance data, select the following:
    • Earnings-related pension insurance: “TyEL pension insurance”.
    • Pension insurance provider: “54 Elo Mutual Pension Insurance Company”.
    • Pension policy number: “54-XXXXXXXX”.
What do the Incomes Register terms ‘material’ and ‘report’ mean?
A report refers to the earnings payment report submitted for a single income earner and a single payment date.

 

The material (or, ‘record’) submitted to the Incomes Register may contain earnings payments reports for multiple income earners.
How should fringe benefits be reported to the Incomes Register?
Here are some practical tips on reporting fringe benefits:
  1. The reimbursements collected by the employer for any fringe benefits must be reported on the same earnings payment report as the fringe benefit in question, even if the actual reimbursement would be collected in advance or later.
  2. Even if the actual reimbursement collected by the employer for the fringe benefit exceeds the taxation value of the fringe benefit, you should report no more than the amount that corresponds to the taxation value.
  3. If the reimbursement collected for the meal benefit is equal to the taxation value, the reimbursement shall not be reported under income type “407 Reimbursement collected for other fringe benefits”, but instead, you should only include in the report the item “The reimbursement collected for the meal benefit corresponds to the taxation value: Yes”.
The reporting of fringe benefits may appear as being successfully done since no error message is returned by the Incomes Register. Any incorrectly submitted reports are forwarded to Elo, but they may result in inaccurate TyEL contributions.

 

It is recommended that you read carefully the instructions of the Incomes Register underReporting data to the Incomes Register: fringe benefits and reimbursements of expenses >  

 

What portion of a fringe benefit must be insured under TyEL?
 The amount of the fringe benefit that remains after deducting the reimbursement collected from the employee is earned income that shall be insured under TyEL. For example, if the amount of the fringe benefit is 120 euro and the reimbursement collected from the employee for the benefit is 20 euro, the remaining 100 euro is income that is subject to TyEL insurance.

In other words, when the value of the fringe benefit exceeds the reimbursement collected, the difference constitutes earned income subject to TyEL. In contrast, if the reimbursement collected for the fringe benefit corresponds, i.e., is equal to the taxation value of the fringe benefit, none of the fringe benefit falls under the scope of TyEL.

Example 1: Housing benefit and reimbursement collected


Housing benefit (income type 301): 900 euro
Reimbursement collected for other fringe benefits (income type 407): 750 euro

The difference is 150 euro. This represents the taxable amount of the housing benefit, so the amount of income falling under the scope of TyEL is 150 euro.

Example 2: Meal benefit and reimbursement collected


Meal benefit (income type 334): 120 euro
The reimbursement collected for the meal benefit corresponds to the taxation value: Yes (True)

The difference is 0 euro. As this is the taxable amount of the meal benefit, the amount of income falling under TyEL is 0 euro.

Example 3: Meal benefit and reimbursement collected


Meal benefit (income type 334): 120 euro
Reimbursement collected for other fringe benefits (income type 407): 80 euro

The difference is 40 euro. This represents the taxable amount of the meal benefit, so the amount of income falling under TyEL is 40 euro.

What are considered mandatory and complementary data?

The information reported to the Incomes Register with the earnings payment report can be mandatory data that is required on each report, or complementary data.

Mandatory data includes:

  • Identifying information, such as the pay period and payment date, and the details of the payers and recipients of each payment;
  • Separately reported income types if paid (e.g. fringe benefits and reimbursements of expenses);
  • At least the total sum of monetary wages/salaries (reporting method 1 = lower detail level of monetary payroll reporting).
Complementary data includes:
  • Complementary income types, in other words, the more specific reporting of monetary wages/salaries (reporting method 2 = greater level of detail);
  • Other additional information, such as certain information concerning the employment relationship, absence information and the earnings periods for the relevant income types.

Employers who submit the necessary complementary data in connection with the mandatory payroll data will need to deliver fewer additional reports.  This complementary data is required by, for example, earnings-related pension providers.

If information is not reported, the data users may have to request the information separately from the payer at a later date.

What does reporting method 1 and 2 refer to?

Reporting method 1
Reporting method 1 refers to the reporting of the total sum of monetary wages/salaries as the minimum requirement (lower detail level of payroll reporting).

Reporting method 2
Reporting method 2 refers to the reporting of monetary wages/salaries with more specific information including complementary income types (greater detail level of payroll reporting). This is the recommended reporting method.

What do the different income types refer to on the earnings payment report?

All earnings are entered as different income types in the earnings payment report for the Incomes Register. Income types refer to the specific types of earnings reported to the Incomes Register. The income type may be, for example, time-rate pay, contract pay or work compensation.
The income types have been divided into 4 groups (100-, 200-, 300-, and 400-series income types).

  • 100-series income types are applicable to reporting method 1, for the purpose of reporting monetary wages/salaries as a total sum.
  • 200-series income types are applicable to reporting method 2, for the purpose of reporting monetary wages with specific income types (recommended reporting method).
  • 300-series income types are reported separately, and are used for, e.g., fringe benefits and reimbursements of expenses. This is mandatory data whenever the income type in question was paid.
  • 400-series income types are used when reporting deductions from one's wages, such as, e.g., tax withholdings and employee contributions. This is mandatory data if the amount in question was deducted from the wages.
Should wage advances also be reported?

Yes. Wage advances must also be reported to the Incomes Register in real time. The information about the wage advance must be reported within five days from the payment date of the advance.

Tax must be withheld from the advance and relevant social insurance contributions must be paid on the payment date of the advance.

Once the tax has been withheld and the social insurance contributions paid, the advance will be deducted from the employee’s gross wages on the actual wage payment date.  

An advance that has already been reported to the Incomes Register must not be reported to the Incomes Register again on the actual wage payment date.

 

What is the difference between a pay period and an earnings period?

The pay period is the period of time for which an income is paid. When an employment relationship ends, this also marks the end of the relevant pay period. The income must be paid on the last day of the pay period, unless otherwise agreed. The submitted report can only contain one pay period.

An earnings period (the period in which the income is earned/accrued) can be different than the pay period. The earnings period is the period of time during which the income was accrued. The earnings period can be longer or shorter than the pay period, for example, one year or longer. The earnings period is income type-specific data, and it can be a different length for each reported income type.

Do we deal differently with those earning hourly wages and those earning a monthly salary?

What if a company has both employees who are paid hourly wages every two weeks and employees who receive a monthly salary once a month? Can the earnings paid to the employees be included in the same report if the payment date is the same?

No, the earnings cannot be reported together if the hourly wages and monthly salaries have different pay periods. A single report may only cover one payment date and include the notifications for one pay period. If the pay period is different for hourly wages and monthly salaries, the relevant information must be provided in separate reports even if the payment date is the same.

When should the income type ‘Total wages’ which is subject to earnings-related pension insurance contribution (102) be used?
The income type ‘Total wages subject to earnings-related pension insurance contribution’ (code 102) is used for reporting the total earned income that serves as the basis for the income earner’s pension insurance contributions.

This income type is only used if the earned income subject to pension insurance contributions differs from the amount reported under the ‘Total wages income type’ (code 101).
 
For example:
The reported amount of ‘Total wages’ (code 101) is 1,000 euro, but, for some reason, only 800 euro of the 1,000 euro total is subject to pension insurance contributions under TyEL insurance. In order to ensure the accuracy of the calculation of the TyEL insurance contributions, you must report the 800 euro as its own income type that is subject to earnings-related pension insurance contributions (code 102).
How should the earnings paid to persons under 17 or over 68 be reported to the Incomes Register?
Individuals aged under 17 or over 68 are excluded from the scope of TyEL insurance.

In order to correctly report their earnings to the Incomes Register, you should select the item “Type of exception to insurance: No obligation to insure (earnings-related pension insurance)” in the earnings payment report.

No pension provider code or pension policy number should be reported to the incomes Register either.
Not all of the information or earnings reported to the Incomes Register are forwarded to Elo. Why?

Elo has the right to receive information required for the purposes of providing earnings-related pension insurance services, and accordingly, only such information is forwarded from the Incomes Register to Elo.
If all details reported to the Incomes Register are not correctly forwarded to Elo, we recommend that you check, via the e-service of the Incomes Register, if any of the reported information are preventing the transfer of the report (or any part thereof) to Elo. Such information include, for example:

  • Type of exception to insurance: “No obligation to provide insurance (earnings-related pension insurance)”
    • This data will prevent the transfer of the entire report to Elo.
  • For a particular income type, the Insurance type given as: “Subject to earnings-related pension insurance contribution: No”
    • This data will prevent the income type in question from being transferred to Elo.
  • Additional income earner information: “Organisation”
    • This data will prevent the transfer of the entire report to Elo.
  • An income type that is not subject to the earnings-related pension insurance contribution
How do I submit an employer’s separate report when my insurance policy at Elo has terminated?
1.    If your insurance policy at Elo has been terminated but it has not been transferred to another pension insurance company, and the termination date is for instance 28.2.19 use the following information when submitting an employer’s separate report in the beginning of March:

•    pension insurance provider: “54 Elo Mutual Pension Insurance Company”
•    pension policy number: Enter Elo’s technical policy number “54-0000000U”.

2.    If your insurance policy at Elo has been terminated because it has been transferred to another pension insurance company, and the termination date is for instance 31.3.2019, use the following information when submitting an employer’s separate report in the beginning of April:

•    pension insurance provider: Choose the name of your new pension insurance company
•    pension policy number: Enter the insurance policy number of your new pension insurance company.

Reporting to the Incomes Register as an occasional employer

What is the technical pension policy number for occasional employers?
When submitting an earnings payment report to the Incomes Register, an occasional employer must also select a pension insurance company to provide TyEL insurance for the employees.

Depending on the reporting method, an occasional employer will need the following information to submit a report:
  • Elo’s pension provider code, which is 54
  • The technical pension policy number, which, at Elo, is 54-0000000U.
If an occasional employer uses an online form provided by the e-service of the Incomes Register or the Palkka.fi service for payroll calculations, Elo’s pension provider code or technical pension policy number is not required; it is sufficient for the employer to name Elo as its pension provider. 
How does an occasional employer submit earnings payment reports using the e-service of the Incomes Register?

You are an occasional employer if you do not have a valid TyEL insurance policy, you hire an employee only occasionally or temporarily and the estimated total 6-month payroll for your employees is a maximum of 8 502 euros (in 2019).

When you submit an occasional employer’s earnings payment report using the e-service of the Incomes Register, please notice the following:

  1. For the Payer type data, select “Temporary employer”
  1. For the Insurance data, select the following:
    • Earnings-related pension insurance: “Employee’s earnings-related pension insurance”.
    • Pension insurance provider: “54 Elo Mutual Pension Insurance Company”.

Reporting to the Incomes Register as a household

What constitutes work commissioned by a household?
Work commissioned by a household refers to work assigned by a private individual or a death estate. Such work is not related to an individual’s farming or business activities.

The website of the Incomes Register contains clear additional instructions for households that pay wages or other earnings and report this information to the Incomes Register >

When reporting work commissioned by a household to the Incomes Register, always submit the report under a personal identity code.

Pension insurance contributions and invoicing

How does the Incomes Register affect the payment of pension insurance contributions? Will the single annual payment option for TyEL contributions still be available?

The single annual payment based on the advance payroll sum is no longer an option.

TyEL contributions are generated on the basis of the payroll information submitted to the Incomes Register. Elo offers three ways to pay the invoices for TyEL contributions:

  1. One invoice per month = Elo’s invoicing system will compile all the contributions for a particular month into a single invoice.
  2. Invoices for each payroll report = An individual invoice will be sent for each report submitted to the Incomes Register.
  3. Payment in advance = The employer can agree with Elo to pay its TyEL contributions in advance (e.g., for the whole year or biannually) as based on an estimated TyEL contribution sum. Elo’s invoicing system will apply the paid funds to set off future invoices based on the payroll information from the Incomes Register, and the customer will receive a copy of the invoice marked as paid.
    With regard to this payment method, please note that any sum paid in advance will not provide any interest benefit based on the insurance contribution interest rate.

The default payment method for all TyEL insurance policies is option 1) One invoice per month.The payment method can easily be changed by contacting Elo’s Insurance Services. Note! Customers whose TyEL insurance contribution is shown under the ‘Maksut’ (Payments) tab in the Palkka.fi service do not have the option to choose an alternative payment method.

Can the TyEL contributions be paid only 2-4 times per year?
TyEL contributions can be paid 2-4 times per year if you choose to pay the contributions in advance. In this way, the employer can pay its TyEL contributions in advance (e.g., for the whole year or biannually) as based on an estimated TyEL contribution sum.
How are the different deductions to TyEL contributions taken into account in the contribution sums and how do they affect the actual payment?
a) Client bonuses: The client bonus is taken into account once per year. The client bonus is granted to the customers as a separate reduction in the spring once the sum has been calculated. The client bonus is taken into account in the customer’s subsequent invoices.

b) Group discount: The group discount is taken into account in the contributions once per year in the same way as the client bonus.

c) Premium category of large-scale employers: The impact of the premium category is taken into account in each invoice. 

d) Premium loss discount of large-scale employers: The impact of the premium loss discount is taken into account in each invoice.
Are the TyEL contributions invoiced in real time now that the Incomes Register has been taken into use?
As a result of the Incomes Register, the TyEL contributions will be invoiced as final payments in real time. Based on the earnings payment report submitted to the Incomes Register, the TyEL contribution is calculated and includes the basic contribution amount and, for large-scale employers, the impact of the premium category and the premium loss discount. Thus, there is no longer any need for separate annual calculations or the resulting adjusted payment.
Will the interest benefit for advance payments still be valid?
No, it will not. No insurance contribution interest will accrue on the TyEL contributions paid in advance, since the system of advance payments based on the estimated annual payroll will no longer be applicable.
The payroll sum on the invoice for TyEL contributions does not match with the information reported to the Incomes Register?

This may be explained by a number of reasons, for example:

  1. If the information given in an earnings payment report is deficient, for example, in terms of fringe benefits (read more under ‘How should fringe benefits be reported to the Incomes Register?’), the report cannot be processed at the same time as the other reports within the same material. For this reason, the reported information is not necessarily included in the invoice.
  2. The report submitted to the Incomes Register may have included other earnings in addition to those subject to the TyEL insurance, such as earnings paid to persons under 17 and/or those over 68. Read more about earnings subject to TyEL insurance (PDF) >
  3. The earnings payment report or a correction has only been submitted to the Incomes Register once the invoice for the other earnings payment reports of the same month has already been issued.
  4. If the earnings payment report is comprised of more than one record file, it may be that the reports have been received by Elo at different times and have, therefore, not been included in the same invoice.
Is it possible to agree on a flex-pay arrangement and payment plans?
Yes, it is possible, in the same way as earlier. Additionally, you can request a one-month payment extension, subject to interest, for a specific invoice by contacting Elo in advance.
Why does the invoice for TyEL contributions contain several rows for one and the same wages/salary payment date?
At Elo, the TyEL contribution is calculated once a day. If Elo receives the earnings payment reports submitted to the Incomes Register so that the reported data are included in the calculation process on different dates, several rows will be generated for the same payment date on the invoice.

Correcting data in the Incomes Register

How can data be corrected in the Incomes Register (report/material)?

Any data in the Incomes Register can be corrected using the replacement method. This means that a replacement report will be submitted that contains any new and changed information as well as all the information that was correct in the original report. The replacement report is submitted for the same payment date as the original report.

The material (‘record’) sent by the payer can contain earnings payment reports for multiple income earners.

  • Each report includes the data of a single payment made to a single income earner.
  • If there are inaccurate reports included in the material, the entire record will not be submitted again, but only the inaccurate reports must be corrected. There is no need to resubmit those reports that are accurate.
How do we ensure that the correction is applied to appropriate report?
The income earner may have several earnings payment reports from the same payer that were submitted with the same pay period and payment date. If the payer chooses the procedure type ‘New report’, the report will not replace a report submitted earlier, even if the pay period and payment date are the same. The individual making the correction should select ‘Replacement report’ in order to make a correction to a report that has already been submitted. For correction purposes, each report is assigned a report reference that ensures that a replacement report or cancellation is applied to the appropriate original report.
In which situations should a report to the Incomes Register be cancelled (instead of using a replacement report to correct to information)?

You should cancel the earlier report and submit a new report in order to correct inaccuracies in the following types of information:

  • Payment date
  • Pay period
  • The customer identifiers of the payer and the income earner
  • The customer identifiers for the actual employer in the “Substitute payer” data group.
  • Birth date of the income earner
  • Pension policy number
  • Identifier or policy number of the occupational accident insurance company
  • The “Type of exception to insurance” data:
    • Retroactive changes to the “No obligation to insure” data and 
    • Retroactive changes to the “Not subject to Finnish social security” data.
How do I correct a report if, for example, I have reported too much for the income amount?
If an error is only in the report itself and the employee has been paid the correct amount of income, simply submit a replacement report to correct the information. If the employee has been paid too much as wages/salary or another type of income, the payer should replace the earlier report by marking the overpayment as an unjust enrichment. Recovery data is reported in the report for the pay period in which the recovered amount is paid back to the employer. The original pay period, when the overpayment was paid to the employee, must also be stated in the report.
If the lower limit for TyEL insurance is not reached until the second pay period of the month, how do I correct the report for the first pay period?

In a situation in which the lower limit for TyEL insurance is not reached during the first pay period of the month, but the limit is exceeded during the second pay period, the information is reported and corrected in the Incomes Register as follows:

•   The ‘Type of exception to insurance’ field in the report must be corrected by cancelling the previous report and creating a new report with the correct information.

•   A new report must be submitted also for the first pay period, because the circumstances have changed and the original information given for the type of exception to insurance is no longer correct.

•   The data in the Incomes Register must correspond to the reality, so the earnings payment reports must be made in accordance with the actual payment dates. If the employee’s share of the pension contribution for the first pay period is invoiced during the second pay period, the report shall concern the second pay period. The report for the first pay period must then be cancelled and a new report drawn up with the changed insurance information (information about the pension insurance, pension provider code and pension policy number). If the employee’s share of the contribution was not collected from the income earner, there is no need to report it. In the earnings payment report for the second pay period, the entire insurance pension contribution collected (and possible unemployment insurance contribution) will be reported as realised. One report is sufficient.

If the report submitted to the Incomes Register contains an incorrect payment date for salaries/wages, how do I correct it?

If the payment date for wages/salary has been reported incorrectly to the Incomes Register, you must cancel the earnings payment report in question. Then, you must submit a new report with the correct/new payment date.

If the report submitted to the Incomes Register contains an incorrect TyEL insurance policy number (pension policy number), how do I correct it?

If an incorrect TyEL insurance policy number (pension policy number) has been reported to the Incomes Register, you must cancel the earnings payment report in question. Then, you must submit a new report with the correct TyEL insurance policy number.

Recovery of a payment and unjust enrichment – how to report and correct these?

If you have mistakenly paid excess wages or salary to an employee and the report submitted to the Incomes Register is incorrect, you should submit a replacement report (for the wage payment date during which the excess salary has been paid to the employee) to the Incomes Register. In the replacement report, enter the amount of the excess payment as “unjust enrichment”. The corrected information will be forwarded to Elo, and the amount of wages/salary subject to an earnings-related pension insurance contribution will be reduced by the amount of the unjust enrichment.

It is not enough that you simply report the recovery of the payment (without correcting the previously reported excess payment as an unjust enrichment) because the recovery of a payment data will not be forwarded to Elo.

International situations

What is the procedure when the payroll administration has been outsourced to a foreign service provider?
In order to access the e-service of the Incomes Register, a foreign company will identify itself using Katso IDs, which will be valid through 2019. No decision has been made yet regarding the continued use of the Katso ID or its replacement. 
Shall earnings be reported to the Incomes Register while the application for the A1 certificate is still pending?

The earnings must be reported to the Incomes Register as earnings insured under TyEL insurance. If the employees are granted an A1 certificate, a replacement report/cancellation must be submitted to the Incomes Register. The earnings must be reported to the Incomes Register in a timely fashion in order to avoid any penalty fees for late reports and accrual of insurance contribution interest on TyEL contributions.

For example:
An employee arrives in Finland from abroad for the purpose of working in Finland for the entire calendar year 1 January–31 December. The employee does not have an A1 certificate for Finland. The employer has paid social insurance contributions to Finland and reported the mandatory information to the Incomes Register.
 
At the end of May, the employee provides the employer with an A1 certificate received from the country of origin and valid as of 1 January. In this case, the employer has paid social insurance contributions unnecessarily to Finland for five months.

The employer must cancel the reports it submitted to the Incomes Register from January until May and submit new earnings payment reports. The data required on the new earnings payment report includes:

 -       Type of exception to insurance: Not subject to Finnish social security (earnings-related pension, health, unemployment or occupational accident and disease insurance)

 -       Social security certificate: An A1 certificate or agreement for Finland.

The unduly paid contributions for January-May are refunded to the employer and the employer must return the unduly withheld employee contributions to the employee. The employer must submit a report to the Incomes Register concerning the employee's shares of the contributions that have been returned to the employee. This procedure is described in the instruction entitled Correcting data in the Incomes Register, under Section 2.4 Reporting negative numbers.
How does a foreign company without a Finnish Business ID report payroll information to the Incomes Register?
The payer must report the data to the Incomes Register primarily using a Finnish Business ID or personal identity code. If the payer does not have a Finnish customer identifier, the data should be reported using a foreign identifier, whereby the payer is also required to enter further identifying and contact details, such as name and address. If the payer has both a Finnish and a foreign identifier, both identifiers must be reported.
How do we report information concerning employees who do not have a Finnish personal identity code?

An income earner’s data must be reported to the Incomes Register primarily with a Finnish personal identity code. If the individual does not have a Finnish personal identity code, the data is reported using the income earner’s foreign identifier. If the given identifier is not Finnish or if no identifier has been provided, additional information, such as the name, address, date of birth and gender, which identify the income earner, must be submitted.

If a foreign individual later receives a Finnish personal identity code, this code is included in the next report that is submitted to the Incomes Register. The foreign customer identifier should also continue to be reported. If the foreign identifier of the income earner has been included in earlier reports, these reports do not need to be corrected. Once the Finnish personal identity code has been issued, this can be included in the report for the next pay period along with the foreign customer identifier. If the earlier reports have been submitted exceptionally without any identifier, these earlier reports will need to be corrected.

To make sure that the earnings-related pension contributions are calculated correctly, how should I report the wages or salary for insurance purposes to the Incomes Register?

If you use Reporting method 1:

  1. Report income type "352 Wages for insurance purposes". 
  2. For all other income types on the report (such as, “101 Total wages"), report the following additional information:
  • Insurance type: Subject to earnings-related pension insurance contribution; Basis for insurance contribution: No.
  • Insurance type: Subject to accident and occupational disease insurance contribution; Basis for insurance contribution: No.
  • Insurance type: Subject to unemployment insurance contribution; Basis for insurance contribution: No.

 

If you use Reporting method 2, submit two separate reports to the Incomes Register as follows:

  1. Submit a report on the income type “201 Time-rate pay” with the following information:
    • Type of exception to insurance: No obligation to provide insurance (earnings-related pension insurance).
    • Type of exception to insurance: No obligation to provide insurance (unemployment insurance).
    • Type of exception to insurance: No obligation to provide insurance (accident and occupational disease insurance).

     

  2. Submit a report on the income type “352 Wages for insurance purposes” alone.

Special insurance situations

How should a municipality report earnings information, when it acts as representative or substitute payer for a severely disabled person?

A municipality that acts as a substitute payer includes any data about payments to a personal assistant in its report to the Incomes Register. The municipality enters the information, using the relevant Business ID, in the earnings payment report and submits it to the Incomes Register within five calendar days from the payment date.

If the municipality submits earnings payment reports and an employer’s separate report on behalf of the actual employer (acting as the employer’s representative on the basis of an authorisation), the municipality shall submit the reports monthly and no later than the fifth day of the month following the salary payment month.

If the actual employer has also made direct payments to the income earner, these must also be reported in addition to the earnings paid by the substitute payer. In this case, however, it must be noted that the reporting deadline for earnings paid by the actual employer is generally within five calendar days from the payment date.  

For example:
The municipality pays 1,000 euro to a personal assistant in August and, of this sum, the municipality withholds 200 euro in taxes. The municipality reports this payment to the Incomes Register in the capacity of a substitute payer.

-->In order to determine and confirm the social insurance contributions of the employer, the actual employer must independently include in her/her own report any earnings paid by the substitute payer for which the employer pays social insurance contributions. The municipality can act on behalf of the actual employer and report information to the Incomes Register, if agreed on with the actual employer.

 

In a situation involving a substitute payer, how should the earnings be reported to the Incomes Register?

In a substitute payer situation, two reports shall be submitted to the Incomes Register:

  1. The substitute payer’s report, including the following data:
    1. The substitute payer’s basic details.
    2. The payer acts as a substitute payer.
    3. The actual employer’s details.
    4. Insurance / Earnings-related pension insurance: “No earnings-related pension insurance” (this is given as a default, do not change).

       

  2. The actual employer’s report, including the following data:
    1. The details of the actual employer (Payer details).
    2. The pension policy number and earnings information for the employee.

Entrepreneurs and YEL

What is the reporting process for a self-employed person who is insured under YEL and paid wages or a salary?
The YEL income for YEL-insured entrepreneurs is not reported to the Incomes Register, but any wages or salary paid to the YEL-insured entrepreneur must be reported to the Incomes Register.
  1. Any wages or salary paid to the owner of a limited liability company shall be reported to the Incomes Register (in the same way as the earlier notifications submitted to the tax authorities).
  2. Any private withdrawals made as a sole proprietor are processed in the bookkeeping for the sole proprietor and reported in tax returns.
When earnings from entrepreneurial activities are reported in an earnings payment report, it is important that the payer remembers to include, in the Income earner field: Earnings-related pension insurance: YEL insurance for self-employed persons (YEL).

Additionally, the following must be reported: Type of exception to insurance:

  • No obligation to insure (earnings-related pension insurance)
  • No obligation to insure (accident and occupational disease insurance)
  • No obligation to insure (unemployment insurance)

The wages or salary paid to an entrepreneur are marked as being subject to paying health insurance contributions, so under the Type of exception to insurance, the following cannot be selected: No obligation to insure (earnings-related pension, health, unemployment or occupational accident and disease insurance), because this would exclude all social insurance contributions.

The YEL insurance policy number, the Business ID of the pension provider and the pension policy number are not reported to the Incomes Register.

 

 

Can an entrepreneur report the telephone benefit for the entire year in advance?
An entrepreneur is paid wages or a salary occasionally while receiving a telephone benefit. Does a report need to be submitted for the telephone benefit each month or can one report be submitted for the entire year in advance? 
  • Fringe benefits cannot be reported once for the entire year, but rather the data must be reported in real time. In accordance with the usage principle, fringe benefits will be counted as income for the month during which the benefit was available to the income earner.
  • If the income earner is not paid monetary wages, but only receives non-monetary fringe benefits, this data must be reported to the Incomes Register on a monthly basis no later than on the fifth day of the calendar month following the month during which the income earner received the benefit. The telephone benefit must also be taken into account on a monthly basis in the total amount of the employer’s health insurance contribution.
  • This data can be reported in advance, but no earlier than 45 days before the payment date.

Retirement of an employee

In connection with an old-age pension application, will the final earnings be retrieved from the Incomes Register?
When pension applications are being processed, information concerning the earnings from the employment relationship and the ending date of the current employment relationship are retrieved from the Incomes Register. If the register is missing some information that is necessary for the granting of a pension, Elo will send the employer an inquiry about the matter, but the employer will respond to the inquiry directly to the Incomes Register instead of Elo. When an employee retires on old-age pension, the ending date of the employment relationship must be reported to the Incomes Register.
How do I report the ending date of an employment relationship?
Report the ending date of an employment relationship in connection with the report on the final payment of salary/wages. If there are multiple reports to be submitted during the first month of retirement, include the ending date of the employment relationship in each report. If it is not possible to report the ending date through your own system, you can report it through tulorekisteri.fi by submitting a new report or correcting the previously submitted report. The ending date is reported, under the earner’s detailed information, as the date on which the validity of the employment or service relationship ends.

Elo is here to help and support you

Elo's Online Service is always available for you to use whenever it's most convenient for you. For TyEL and YEL insurance matters, please call us at +358 (0)20 694 730 (weekdays 8 a.m.-4:30 p.m)