Things to remember when reporting summer holiday wages and holiday bonuses to the Incomes Register6/12/2019
Holiday pay does not have its own income type in the Incomes Register. Income paid for and accrued during a holiday is usually reported using the Time-rate pay (201) income type if the wages are paid based on the time working, such as is the case with employees with a monthly salary. If the income paid for the holiday was performance pay or commission, the income is reported using either the Contract pay (227) or Commission (220) income type, according to the grounds of the income.
Report holiday bonuses to the Incomes Register
Holiday bonuses are often paid at the same time to everyone, regardless of when they take their annual leaves. The holiday bonuses paid must be reported to the Incomes Register on an earnings payment report no later than within five days of the payment date. Report holiday bonuses using the Holiday bonus (213) income type.
Report the entire period during which the holiday bonus was accrued as the earnings period of the holiday bonus. If a holiday bonus is paid in several instalments, the same earnings period – i.e. the accrual period of the holiday bonus – can be reported for all instalments.
Report absences for the summer holiday period as well
Absence data is complementary additional data voluntarily reported to the Incomes Register. Even if submitting this data is not mandatory, we do recommend reporting it. For example, Kela and unemployment funds require this data. Report annual leave as complementary data for the paid absence. In addition, you also need to report the type of absence and the amount of pay for the duration of the absence.
As the time period for reporting absences, report the time period for which you are aware of the income earner's absences.
For example, if a person is on an annual leave from 16 July to 12 August, report the absences in July as follows:
- As the start date of the absences, report the next day after the end date of the absence period reported in the June report.
- In the earnings payment report for July, the end date of the time period for reporting absences is 12 August if the pay for the entire annual leave can be reported. If you do not yet know the amount of pay for the entire annual leave when reporting the data for July, report 31 July as the end date of the time period for reporting absences.
- Report the annual leave as paid absence for the period 16 July to 12 August. Report annual leave as the reason for the absence, and the total wages for the annual leave reported as the amount of wages.
- In the earnings payment report for August, the start date of the time period for reporting absences is the next day after the end date of the July reporting period, i.e., either 13 August or 1 July. The end date is the day up to which the absences are known at the time of reporting.
If the income earner falls ill during their annual leave, for example, the days of annual leave spent are reported as the period of annual leave. In such a case, as provided in the Annual Holidays Act or agreed in a collective agreement, part of the annual leave can be considered 'waiting days', which will not be postponed to a later date. If the reason for absence changes during a continuous period of absence, the absence must be reported as a separate time period. Correct the absence data to match the actual annual leave days spent, and report the sick leave as its own data, either by reporting the time period for reporting absences again or by correcting the absence data in the original report.
Wages can be reported to the Incomes Register as early as 45 days before their payment
- Data on payments to be made can be reported to the Incomes Register in advance. A report can be submitted no earlier than 45 days before the payment date. Holiday bonuses can also be reported in advance.
- If wages are paid on 31 July, for example, they can be reported to the Incomes Register from 17 June onwards. This means that you can report summer wages in phases.
How should a holiday not taken be reported to the Incomes Register ?
If an employee does not take a holiday and you need to recover a holiday bonus already paid, the payer of the holiday bonus has two alternative ways of reporting this to the Incomes Register.
Primarily, the payer should correct the submitted report and change the holiday bonus paid without cause into an unjust enrichment. When the payment is recovered from the income earner, report the recovery data to the Incomes Register.
The other alternative is to treat the overpayment as advance pay. In such a case, the payer deducts the holiday bonus from a payment made later. If the overpayment is recovered from another income type, the income type in the original report (Holiday bonus) must be corrected to match the income type from which the overpayment is deducted (e.g. Time-rate pay or Annual holiday compensation).