Reporting the wages of a YEL/MYEL-insured self-employed person to the Incomes Register

1/28/2020

A self-employed person must report the wages they withdraw from their company and information on the applicable earnings-related pension insurance to the Incomes Register:

  • Select Pension insurance for farmers (MYEL) if the self-employed person is insured in accordance with the farmers' pensions act.
  • Select Pension insurance for the self-employed (YEL) if the income earner is insured in accordance with the self-employed persons' pensions act.

The pension policy number and the pension insurance company are not reported to the Incomes Register. Occupational class information is not reported either.

Social insurance contributions may be collected twice if the information is not negated

'Income from work' information is not reported to the Incomes Register, but the wages received by a self-employed person must be reported for taxation purposes. The wages are reported using the income types of the Incomes Register. Withdrawals for private use are not reported to the Incomes Register.

The default of the income types is that the income is subject to social insurance contributions. In the case of the wages of a self-employed person, this information must be negated by reporting the type of exception to insurance. If this data item is not used when reporting the wages of a self-employed person, there is a chance that the social insurance contributions may be collected twice.

Report the following information to the Incomes Register:

  • Type of exception to insurance: No obligation to provide insurance (earnings-related pension insurance)
  • Type of exception to insurance: No obligation to provide insurance (unemployment insurance)
  • Type of exception to insurance: No obligation to provide insurance (accident and occupational disease insurance)

Please note that the employer's health insurance contribution is determined based on the wages paid, so the type of exception to insurance information is not used in connection with it. The employer's health insurance contribution is collected from the wages paid to a self-employed person and the information is reported company-specifically once a month on the employer's separate report.

In the Incomes Register's e-service, this information is found in the section 'Show detailed insurance data'.

If data has been reported incorrectly, cancel the submitted report containing errors and submit the data on a new report to the Incomes Register.

The wages of a self-employed person do not belong to of the mandatory accident and occupational disease insurance contribution

A YEL-insured self-employed person can take out a voluntary insurance for working time in accordance with the Workers' Compensation Act. The insurance contribution of this insurance is determined based on its own grounds for payment. The Type of exception to insurance: No obligation to provide insurance (accident and occupational disease insurance) information must be reported on the earnings payment report of a YEL-insured self-employed person.

A YEL-insured self-employed person is not considered a partial owner

'Partial owner' is reported as the additional income earner information if the income earner is a partial owner according to the unemployment security act (työttömyysturvalaki 1290/2002). If the income earner is a YEL-insured shareholder entrepreneur, the Partial owner information is not reported, as the self-employed person has no obligation to take out an unemployment insurance.

Reporting 'Joint owner with payer' information to the Incomes Register

Report the additional information if the income earner is a joint owner with the payer, i.e. is involved in the company or its operations via invested capital. This information does not need to be reported if the income earner is a shareholder in a listed company.

Type of additional income earner information: 'Joint owner with payer'. In the e-service, this information is found in the section 'Show detailed income earner data'.