Report fringe benefits to the Incomes Register

4/29/2019

The reporting of fringe benefits has changed with the deployment of the Incomes Register.

The employer must report the total taxable value of the fringe benefit using the appropriate income type. If a reimbursement has been collected from the income earner, the employer must report the reimbursement separately.

Use the following income types:

  • 304 Car benefit
  • 401 Compensation collected for car benefit

Submit as additional data:

  • Car age group: A, B, C, or U
  • Type of car benefit: full car benefit or limited car benefit

An employer-subsidised commuter ticket benefit must be reported as income from the pay period when the benefit is processed in payroll accounting. If it is not processed in the payroll system at all, the tax-exempt employer-subsidised commuter ticket benefit can be reported once a year. However, it is recommended that the benefit be reported in the report of the month when the benefit was issued. The employer must always report the employer-subsidised commuter ticket benefit to the Incomes Register, even if there is no taxable benefit. The employer-subsidised commuter ticket benefit is reported using three income types:

  • 341 Employer-subsidised commuter ticket, tax-exempt share
  • 342 Employer-subsidised commuter ticket, taxable share
  • 415 Reimbursement for employer-subsidised commuter ticket

Use the following income types:

  • 301 Accommodation benefit
  • 407 Reimbursement collected for other fringe benefits

Use the following income types:

  • 330 Telephone benefit
  • 407 Reimbursement collected for other fringe benefits

In March, some changes were made to the reporting of the telephone benefit. If the telephone benefit is processed in payroll accounting in advance for the entire year, it can also be reported to the Incomes Register in advance once a year. It is possible to take this action if the payable income is not subject to earnings-related pension, unemployment, or accident and occupational disease insurance contributions, such as with YEL-insured shareholders. Another condition is that the person is not paid any other income or has not been issued any other benefit.

In these cases, the telephone benefits for the rest 2019 can be processed and reported to the Incomes Register at the same time. Information reported at the beginning of the year need not be changed retroactively. This is also applicable to a situation where an entrepreneur receives a telephone benefit in the middle of the year and it could not have been processed in January.

Read the news item: Incomes Register's new instructions facilitate reporting of telephone benefit

A meal benefit is reported using different income types, depending on whether the benefit corresponds to the taxable value.

Meal benefit corresponds to taxable value

Report to the Incomes Register:

  • Reimbursement for a meal benefit corresponds to taxable value: Yes
  • 334 Meal benefit: EUR 0 or the amount of the benefit

Meal benefit does not correspond to taxable value

Use the following income types:

  • 334 Meal benefit: total amount
  • 407 Reimbursement collected for other fringe benefits

Use the income type 317 Other fringe benefit.

When are fringe benefits reported?

If an employee is also paid monetary wages at the same time, the employer must report the information on both fringe benefits and wages on the fifth calendar day after the payment date.

If an employee is paid wages in two-week periods, some employers may split the benefit in half for each of the periods. If they so wish, the payers can report the benefit twice a month by splitting the taxable value for the two separate pay periods of the same month. However, in order to do this, the wages of both pay periods must be paid during the same month. Nonetheless, it is recommended that the fringe benefit be reported only once a month.

If an employee is only given fringe benefits and not paid any monetary wages, information on the amount of the benefits must be reported to the Incomes Register monthly, and the payment date entered in the earnings payment report must be a day of the month, for example the last day of the month, when the benefit, in accordance with the usage principle, was available to the income earner.

Correcting fringe benefit data in the Incomes Register

If a fringe benefit has not been reported: Correct the report of the month in question by submitting a replacement report and add the missing fringe benefit to the report.

If the amount of the fringe benefit reported is too high: If a benefit that was not available for an employee has been reported for them or if the amount of the fringe benefit reported is too high, correct the original report by submitting a replacement report. Correct the erroneously reported amount or delete the fringe benefit from the report.

If necessary, correct the employer's separate report as well.

A fringe benefit is a non-monetary reimbursement given to an employee

A fringe benefit is non-monetary compensation for work, which the employer grants to the employee. A fringe benefit is taxable wage income on which the employer must withhold tax and pay the social insurance contributions.

Tax-exempt personnel benefits, such as sports and culture benefits, e.g. exercise vouchers, are not reported to the Incomes Register. Instead, the amount deducted from an income earner's net wages can be taken into account with the income type 406 Wages paid.

Reporting data to the Incomes Register: fringe benefits and reimbursements of expenses

Fringe benefits: FAQs