Electronic transfer of withholding rates to employers already covers 500,000 workers

Tax Administration Bulletin, 9/22/2021

Both the employer company’s payroll office and the individual worker can save time with the program interface that gives employers the workers’ current withholding rates, i.e. their tax-card information. Later in 2021 the interface will contain new features that are designed for payors of pensions and social benefits.

If the payroll office uses the Tax Administration’s interface, the current withholding rates for all workers are received automatically from the Tax Administration and then integrated into the payroll system.

This eliminates the need to give the paper tax card to one’s employer every year.

- The interface for tax-card information offers a more economical, time-saving process for payroll offices. There is no need to deal with paper tax cards anymore. The automatic transfer of information makes life easier for workers, too: it is enough if the individual worker logs in to MyTax to update their withholding rate when necessary – they do not have to do anything else, says Sauli Kukkonen, specialist for IT development at the Tax Administration.

The interface was launched last December. At present, the employers that use it are receiving the withholding percentage rates of some 500,000 workers in total.

- The interface has gained popularity, and the number of users grew rapidly especially during the summer months. On the other hand, there are still many organisations that do not take advantage of the interface although it would be useful for them, Sauli Kukkonen adds.

If you want to know whether your personal tax-card information is transferred automatically, you can contact your employer’s payroll office to ask whether it uses the Tax Administration’s interface.

New features give access to the interface for payors of pensions and benefits

At present, the primary users of the interface for tax-card withholding rates are Finnish employer companies. According to Sauli Kukkonen, among the most active user groups are companies that offer accounting and payroll services for self-employed people under arrangements known as “light” entrepreneurship. Another important category of employers is in the employee-leasing sector.

- The workers’ income in those sectors changes constantly, and during a typical year, many changes must be made to their tax cards. This has created a lot of extra work for accounting and payroll offices.

In autumn 2021, a set of new features is introduced: the interface will provide additional, easier-to-use functions for organisations that pay out unemployment allowance, insurance indemnity payments, pensions and various benefits.

Changes to the employer’s accounting software are necessary

The integration with the employer company’s software and the Tax Administration’s interfaces requires some changes to the program settings. If your organisation uses software purchased from a commercial service provider, we recommend that you ask the provider company whether integration with our interfaces is feasible.

Correspondingly, if your organisation handles its own software development independently, you are welcome to contact the Tax Administration to ask for support and instructions.

Integration is likely to cause some expenses because of the changes. The costs vary depending on what has been agreed between your organisation and the service provider.  However, no cost is being charged for the use of the Tax Administration’s interface.

The Tax Administration offers more than 30 interface solutions for transfers of tax data between taxpayers, companies, and organisations.  Plans for 2022 include several new launches of interfaces.

Further information:

Information about program interfaces (in Finnish)
Tax Administration’s interface services – instructions for software developers