Type of deduction

Select the type of the deduction. You can only select one type.

Collection of maintenance debt

Select this option if the benefit payer offsets a child support debt from the benefit of an income earner liable to pay child support.

Kela may offset a child support debt from a benefit if the offsetting has been agreed as proposed by the income earner liable to pay child support. In addition, Kela can offset a child support debt from child increases in an unemployment benefit and from a provider supplement included in the study grant of an income earner liable to pay child support without the consent of the income earner liable to pay child support (statutory offsetting).

Do not select this option if an income earner liable to pay child support fulfils their payment obligations through separate payments to Kela. In this case, the payments do not comprise any benefit payment or its recovery to be reported to the Incomes Register.

Payment reallocation from net income

Select this option if you report an overpayment paid to a substitute recipient, and the deduction is made after tax has been withheld or tax at source has been collected.

Payment reallocation from taxable income

Select this option if you report an overpayment paid to a substitute recipient, and the deduction is made before tax is withheld or tax at source is collected.

Demand for payment (not a recourse situation)

Select this option if a payment paid to a substitute recipient is based on a demand for payment presented by the substitute recipient and the payment is not paid by means of recourse offsetting. This deduction type does not apply to situations where a retroactive pension or benefit is paid to replace another benefit granted for the same period.

The demand for payment must be based on laws regulating benefits granted by the institution acting as the secondary recipient or other laws, on the basis of which the benefit can be paid to the party demanding payment. On the basis of the demand for payment, a payment or its part can be paid to an authority, institution, or another party. The demand for payment includes information about the party demanding payment and information about the payment subject to the demand for payment.

For example, when an unemployment benefit is paid to a municipal body based on chapter 11, section 9 of the unemployment security act (työttömyysturvalaki 1290/2002), this situation is based on a demand for payment.

MATA and MYEL collection

Select this option if an income earner’s unpaid insurance premiums subject to pension insurance for farmers (MYEL insurance) or farmers’ accident and occupational disease insurance (MATA insurance) are collected from the income earner’s pension or reimbursement. The collection may include payment increases and late payment interest.

However, no more than one third of the part of the payment, which remains after withholding tax or the collection of tax at source, can be deducted from the payment to be paid without the income earner’s consent. This restriction does not apply to pension paid as a one-off payment.

Other deduction from net income

Select this option if a deduction is made from a payment after tax has been withheld or tax at source has been collected, for example, based on a power of attorney. The deduction has no effect on the amount of the income earner’s taxable income.

Also use this deduction type to report any voluntarily reported deduction data that affects the amount of the income earner’s available income (net income).

Other deduction from taxable income

Select this option if a deduction is made from a payment on the basis of a legal provision for the income earner’s employer or the employer’s bankruptcy estate, instead of the income earner entitled to the payment. The deduction must be made before tax is withheld or tax at source is collected.

These payments include a rehabilitation allowance paid to the employer on the basis of section 47 of the act on the rehabilitation benefits and cash allowances provided by the Social Insurance Institution of Finland (laki Kansaneläkelaitoksen kuntoutusetuuksista ja kuntoutusrahaetuuksista 566/2005) and a sickness allowance paid on the basis of chapter 7, section 4 of the Health Insurance Act.

Deduction based on lien

Select this option if a deduction and payment to a substitute recipient are based on lien.

The proportion paid to the holder of the right of lien from a death benefit is not taken into consideration in the income earner’s possible inheritance taxation.

Recourse on taxable income

Select this option if the situation involves a recourse and if the deduction is made before tax is withheld or tax at source is collected, in which case the remaining amount only comprises taxable income.

In a recourse situation, different benefits are paid simultaneously, and the payer of a previously paid benefit is recovering a benefit that has been detected to be secondary to a benefit paid later. Instead of the income earner, the recovered amount is paid directly to the payer of such secondary benefit.

Recourse on tax-exempt income

Select this option if the situation is a recourse situation and if the paid amount is wholly taxable income, meaning that the deduction is made after tax has been withheld or tax at source has been collected.

Select this option if the collection of a tax-exempt benefit is directed at a tax-exempt benefit.

Also select this option in situations where a retroactive pension or benefit is paid to replace another benefit granted for the same period. Such a situation exists, for example, when a deduction in accordance with section 23 of the Act on Social Assistance.

Recovery of guaranteed student loan debt

Select this option if Kela is recovering student loan debt guaranteed by the state from an income earner.

The collection of a guarantee liability is a deduction that is made after tax has been withheld or tax at source has been collected.

YEL collection

Select this option if a pension institution is collected a self-employed person’s unpaid YEL payments from a pension they have paid.

Without the pension recipient’s consent, at most one third can be offset from the amount of a self-employed person’s pension after tax has been withheld or tax at source has been collected.