Report overpayment and its recovery to the Incomes Register

11/1/2019

Overpayment, i.e. unjust enrichment, means a payment to which an income earner is not entitled for some reason. For example, an income earner may have been paid too much in wages or other payments, or the payment may have been made on incorrect grounds or to the wrong individual altogether. In such cases, the overpayment is usually recovered from the income earner.

An overpayment is reported to the Incomes Register as an unjust enrichment. When the payment has been recovered, information on the recovery must be reported to the Incomes Register. An unjust enrichment must be reported to the Incomes Register even if it is not recovered.

A typical overpayment situation occurs when wages are paid in excess because the employee has actually had an unpaid absence during the pay period. In such a case, the employee receives an unjust enrichment to which they are not entitled.

When should unjust enrichment be reported to the Incomes Register?

An unjust enrichment must be reported to the Incomes Register without undue delay and no later than within one month of noticing it.

If the unjust enrichment has already been reported to the Incomes Register as paid income, the previous report must be corrected. The overpayment must be entered as unjust enrichment on the replacement report. If necessary, the previously submitted employer's separate report must also be corrected.

A new earnings payment report must be submitted if the unjust enrichment has not yet been reported to the Incomes Register and the overpayment is recovered from the income earner.

Information on the recovery of the overpayment must be reported to the Incomes Register on the report of the pay period during which the income is recovered.

Watch video: How to report unjust enrichment and recovery to the Incomes Register (YouTube, in Finnish, 11:55 min)