What does the Incomes Register mean to sports clubs?
Wages and earned income paid after 1 January 2019 must be reported to the Incomes Register. The Incomes Register applies to all kinds of associations, including non-profit organisations and unregistered associations. If an association pays wages or other earned income, such as referee fees or reimbursements of expenses for coaches, it must report the data to the Incomes Register.
Such data must be reported to the Incomes Register within five calendar days of each payment transaction. The Incomes Register only regulates the reporting obligations. The Incomes Register does not regulate when the income must be paid. The payer reports the data to the Incomes Register.
What data should be reported to the Incomes Register?
Data reported to the Incomes Register includes wages, bonuses, fringe benefits, non-wage compensation for work, and other earnings. Taxes withheld and social insurance contributions collected are also reported to the Incomes Register. Tax-exempt and taxable reimbursements of expenses must also be reported.
The daily allowances paid for travel expenses, meal allowances, and kilometre allowances are reported to the Incomes Register. Public transport tickets and reimbursement of accommodation expenses are not reported to the Incomes Register.
A non-profit organisation can pay certain reimbursements to a person who participates in voluntary work for no remuneration without an employment relationship. The organisation can pay tax-exempt kilometre allowance equivalent to business travel for the use of a car owned or possessed by the person, as well as domestic full or partial daily allowance or international daily allowance. However, a meal allowance is not tax-exempt.
Fees paid to athletes include competition prizes, fees based on advertising and sponsorship agreements, participation fees, and other fees based on their status as an athlete. The recipient of the fee is not in an employment relationship with the payer. Report the fee to the Incomes Register using the income type Non-wage compensation for work. Remember to specify that the income earner is an athlete.
If there is an employment relationship between the sports club and the athlete, the wage details are reported using wage income types. However, the wage income types are used to report only the wages directly paid to the athlete. Report the wages using, for example, the income type Time-rate pay. Remember to specify that the income earner is an athlete.
Wages transferred to athletes' special fund
An athlete can transfer his or her income from sports to a national training fund or athletes' special fund linked to a foundation appointed by the Ministry of Finance. By transferring income to the fund, athletes can secure their livelihoods after the end of their careers.
Income from sports can comprise the athlete's wages or fees. Use the income type Wages transferred to athletes' special fund to report the wages transferred to the fund. Also specify that the income earner is an athlete. Athlete's fees transferred to the athletes' special fund are not reported to the Incomes Register.
Remunerations to competition judges
Sports clubs pay various remunerations to referees and other competition judges. The payments must be reported to the Incomes Register, with no monetary minimum threshold or age limit applying, within five calendar days of the payment date.
If there is no employment relationship between the sports club and the referee/judge, report the payment using the income type Non-wage compensation for work.
If there is an employment relationship between the sports club and the referee/judge, report the payment using the wage income types.
Reimbursement of expenses paid to referees and judges must be reported to the Incomes Register within five calendar days of the payment date using the non-profit organisation income types Daily allowance paid by non-profit organisation and Kilometre allowance paid by non-profit organisation, even if no monetary wages are paid.
Competition prizes must be reported to the Incomes Register when they are taxable income and the prize has monetary value. Only objects that have no actual exchange value need not be reported to the Incomes Register. Such objects include trophies, medals, and pennants, bags of sweets and packets of coffee, or small material prizes, like baseball caps, which are given out for advertising purposes. If a separate contest organiser gives a prize to the winner, a taxable prize must be reported to the Incomes Register. Thus, prizes given in competitions between friends need not be reported.
Competition prizes awarded as goods are valued at their fair value, or the value that could be received for the goods if they were sold immediately.
Non-monetary benefits and payments must be reported monthly no later than on the fifth day of the next calendar month if no monetary payment is made to the income earner at the same time.
Report prize goods using the income type Other taxable income deemed earned income, if the prize is not won in a sports competition. Athlete's prizes (money, goods, gift cards) are reported as Non-wage compensation for work, with 'Athlete' entered as additional information, if the athlete is not employed by the payer. If the athlete is employed by the payer, monetary prizes are reported using the income type Other compensation (216), and prize goods and gift cards are reported using the income type Other fringe benefit (317).
If a municipality later gives the athlete an achievement award, it will not be reported to the Incomes Register.
Report reimbursement of expenses to the Incomes Register
Tax-exempt and taxable reimbursements of travel expenses must be reported to the Incomes Register. Tax-exempt kilometre allowances, daily allowances, meal allowances, and taxable reimbursement of expenses are reported to the Incomes Register. Reimbursement of expenses must be reported, even if no monetary wages are paid.
The reimbursement of expenses paid must be reported in the report for the pay period and payment date in relation to which the expenses were reimbursed or the other income was paid to the income earner.
Volunteers of a non-profit organisation
If an association is a non-profit organisation, it must report daily allowances and kilometre allowances paid to volunteers to the Incomes Register. Daily allowances and reimbursement of expenses paid by non-profit organisations are reported using the non-profit organisation income types. The recipients of tax-exempt or taxable reimbursement of expenses do not need to be members of the payer organisation.
Example: As agreed in advance, a non-profit organisation paid EUR 300 in tax-exempt kilometre allowance to an instructor for organising children's exercise sessions. The instructor was a volunteer, and no other fee was paid. The instructor also represented the organisation at a general assembly, with the organisation paying one tax-exempt daily allowance and one partial daily allowance (totalling EUR 45) for the trip, as well as airline tickets and an accommodation in a hotel. The instructor delivered travel invoices to the organisation from several months at once.
The tax-exempt reimbursements of expenses are paid at once on a single payment date. Reimbursements of expenses paid must be reported to the Incomes Register within five calendar days of the payment date. The data is reported without a monetary minimum threshold. The public transport ticket and reimbursement of accommodation expenses are not reported to the Incomes Register.
The following are reported to the Incomes Register:
- EUR 300 using the income type Kilometre allowance paid by non-profit organisation
- EUR 45 using the income type Daily allowance paid by non-profit organisation.
The airline tickets and the accommodation in a hotel are not reported to the Incomes Register.
A non-profit organisation must also report to the Incomes Register any taxable reimbursements of expenses paid to volunteers (such as monetary allowances for buying personal equipment) within five calendar days of the payment date.
Wage earners of an association
An association must also report any reimbursements of expenses paid to its own wage earners. Kilometre allowances, daily allowances, meal allowances, and taxable reimbursement of expenses paid to a wage earner are reported to the Incomes Register. Tax-exempt travel expenses for which the employer reimburses the employee are not reported if the payment made to the employee is based on a document provided by the transport operator (such as a train ticket). Accommodation allowance, night travel allowance, and border-crossing allowance are not reported to the Incomes Register either.
Also report fringe benefits in real time
In accordance with the usage principle, fringe benefits will be counted as income for the month during which the benefit was available to the income earner. If an income earner is paid both monetary wages and fringe benefits, all data must be reported within five days of the payment date. However, if the income earner is not paid monetary wages, but only – say – fringe benefits, the data must be reported to the Incomes Register on a monthly basis no later than on the fifth day of the calendar month following the month during which the income earner received the benefit.
If the telephone benefit is processed in payroll accounting in advance for the entire year in January, it can also be reported to the Incomes Register in advance once a year. It is possible to take this action when the payable income is not subject to earnings-related pension, unemployment, or accident and occupational disease insurance contributions, 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.
Read more in the following instructions: Reporting data to the Incomes Register: rewarding employees, payments made to an entrepreneur and other special circumstances
Report to the Incomes Register electronically
Online transactions are a basic requirement of the Incomes Register; in the future, data may be submitted on a paper form only in special circumstances. Situations where the electronic submission of data cannot reasonably be required can be considered special circumstances. Data cannot be reported to the Incomes Register by phone; instead, it must be reported electronically in a specific format.
Palkka.fi handles the reporting to the Incomes Register
An association can perform its payroll calculations in the free-of-charge Palkka.fi service to have the data be automatically submitted to the Incomes Register. Thus, a separate report does not need to be submitted to the Incomes Register.
You can also report data via the Incomes Register's e-service
Data can also be reported via the Incomes Register's e-service. Persons who may use the e-service on behalf of an association include the association's chairman of the board and a board member who have been entered in the Trade Register or the Business Information System. Read more about the official roles.
You can report earnings payment data via the e-service either by uploading the data as a file or by entering the data on an online form.
You can use your personal online banking codes, a mobile certificate, or a certificate card to log in to the Incomes Register's e-service on the incomesregister.fi website.
Using the e-service may require authorisation
An association can authorise, for example, an accounting firm or a treasurer to act on behalf of the association in the Incomes Register's e-service. The association must grant the authorisations in the Katso service. A Katso master user can authorise a person or a company to act in the Incomes Register on behalf of the association. Old authorisations are not valid, as the Incomes Register is a new service. The Incomes Register uses the authorisation codes Reporting earnings payment data and Browsing earnings payment data.
Read more (incomesregister.fi)