Father Christmas, Christmas help and Christmas gifts - check when to report paid remunerations and gifts to the Incomes Register

11/22/2019

During the last months of the year, many companies hire seasonal workers. Households may hire a cleaner or a Father Christmas. Report the wages and fees you have paid to the Incomes Register. The reporting obligation also applies to short-term employment relationships and payments made to minors. For example, there is no minimum euro threshold for reporting the wages of Finnish and foreign seasonal workers.

Hiring a Father Christmas, paying for Christmas cleaning or some other services and reporting to the Incomes Register

When payments are made, for example, to a Father Christmas, a cleaner or a caterer who is not in an employment relationship with the payer, the remunerations must be reported to the Incomes Register if:

  • the service provider is not registered in the prepayment register.
  • the income earner is a non-resident taxpayer.
  • a payer who is covered by the public sector pensions act pays non-wage compensation for work to an income earner who is registered in the prepayment register and who is not insured under the pension insurance for the self-employed.

It is easiest to report this type of one-off non-wage compensation for work in the Incomes Register's e-service.

Watch an instructional video on how to report non-wage compensations for work (in Finnish)

Read more about reporting non-wage compensations for work

Hiring Christmas help

If you employ a seasonal assistant for Christmas, the wages paid must be reported to the Incomes Register in all situations. The wages paid to minors and foreign employees must also be reported to the Incomes Register with no minimum euro threshold. The duration of the employment relationship does not matter. Whether the employer has an obligation to provide insurance or not does not matter either, nor does the fact whether the paid income is taxable. If you calculate wages with the free Palkka.fi service, data on paid wages will be transferred to the Incomes Register automatically and no separate report to the Incomes Register is required. You can also report data via the Incomes Register's e-service at incomesregister.fi.

Information must be reported to the Incomes Register within five calendar days of the payment date. All paid wages and fees must be reported to the Incomes Register without minimum euro thresholds. The employer must report the data to the Incomes Register. The Incomes Register replaces the earlier payroll information returns filed to the Tax Administration, Employment Fund, earnings-related pension providers, and occupational accident insurance providers.

In addition to the earnings payment report, the employer must submit an employer's separate report once a month to the Incomes Register. The report must be submitted by the 5th day of the month following the month of payment.

Read more (in Finnish): Report the wages of seasonal workers to the Incomes Register

Watch video: How to report earnings payment data to the Incomes Register (YouTube, 6:03 min, in Finnish)

Employer's gifts to employees

Employers can give gifts to their employees at Christmas. Regarding gifts given by employers, only so-called other gifts of minor value given collectively to the entire personnel are deemed tax-exempt. The value of a such a gift can be no more than EUR 100. If an employer gives their employees a couple of gifts of minor value in a year, the total value of these gifts may not exceed EUR 100. The gift can be goods or a product, such as a Christmas ham, an admission ticket, a service, or a personal gift card. The employee can also choose a gift from different options provided by the employer. Gifts given in money or comparable to a payment made in money, such as a Christmas bonus, are always considered wages and must be reported to the Incomes Register with income type 203.

Read more in the Tax Administrations instructions, Section 3.4.2 (in Finnish).

Gifts given by an association to its volunteers

Associations tend to remember their volunteers, for instance annually, for the work that they perform for no remuneration for the good of the organisation. Inexpensive material gifts given to volunteers and members of non-profit organisations as a sign of gratitude are not reported to the Incomes Register if they are tax-exempt for their recipients and if they are not agreed to be compensation for work.

Gifts for teachers and nursing staff

A gift for a teacher is given out of consideration by a pupil or their parent. These types of gifts are not usually deemed taxable income and are not reported to the Incomes Register.