Benefit and pension data will be reported to the Incomes Register in 2021

5/27/2020

The Incomes Register project proceeds on schedule. Starting from 1 January 2021, information on paid benefits and pensions will be reported to the Incomes Register. At the same time, the enforcement authorities will become data users.

The digitalisation of reporting and utilising income data has happened quickly in Finland.

Testing the benefits system in advance makes its deployment easier

The Incomes Register speeds up and automates the data flow of earnings and benefits payment data. Almost 90% of earnings payment reports are currently submitted directly from payroll systems to the Incomes Register – and a similarly high level of digitalisation is also expected with regards to benefits and pensions.

- The changes to the systems concerning benefits and pensions payment data are being developed and tested presently in the Incomes Register's stakeholder testing environment. I would like to urge all benefit payers and data users to test the Incomes Register before the turn of the year. It is not enough that the Incomes Register system itself is working, but each benefit payer must make sure that their own system is compatible with the Incomes Register. The annual information returns on benefits and pensions currently submitted to the Tax Administration will be a thing of the past at the turn of the year, says Terhi Holmström, Director of Incomes Register Unit.

Read more: What data flows will be replaced by the benefits payment report submitted to the Incomes Register

Cooperation with stakeholders is key

The Incomes Register is a shared register of various different authorities. The Incomes Register project collaborates closely with stakeholders.

There are many ways to collaborate. For example, every two weeks, the Incomes Register arranges questions and answers clinics for benefit payers and data users or discussing topical issues. You can also send your questions to the project's email address YHT.Tulorekisteri_toiminnallinen@vero.fi.

- This is a big change. The better you are prepared for it, the easier it will be to start using the Incomes Register at the turn of the year. There is a lot of information available, and we are happy to help and support stakeholders, Holmström reassures.

Incomes Register data is widely used in Finland

From the perspective of society, the Incomes Register is a significant data repository. The data is used in, for example, taxation, granting benefits and pensions, handling insurance compensations, labour protection, statistics, and determining the customer fees of municipalities.

- The Incomes Register was created in cooperation with employers' organisations, system suppliers and various authorities. Developing a real-time digital society has been a common goal that can be seen as better digital services, says Holmström.

The Finnish Incomes Register is one of a kind in terms of its scope and real-time information. As a rule, data is reported to the Incomes Register within five calendar days of payment. The wage, pension and benefit income reported to the Incomes Register cover about 90% of all income earners' taxable income. It has been estimated that in about two out of three cases the income reported to the Incomes Register corresponds exactly with the income earner's total income.

Media bulletin 27 May 2020 (in Finnish): The Incomes Register expands in 2021 - benefits and pensions data will be reported to the Incomes Register 

Read more (in Finnish): FAQs about reporting benefits data to the Incomes Register

Watch our video: The Incomes Register is expanding (YouTube, in Finnish, 2:19 min)