Report fringe benefits to the Incomes Register each month

Fringe benefits are treated as taxable wage income, which means that the employer must withhold tax from them and pay social insurance contributions on them.

Report fringe benefits using the 300 series types of income. Submit reports no later than on the 5th day of the calendar month following the fringe benefit accrual month.

If an employee also receives monetary wages

You can report fringe benefits on the same earnings payment report with monetary wages or on a separate earnings payment report. Report monetary wages either by providing an itemisation (200 series) or indicating a sum total (100 series).

Read more about wage income types. The list of income types specifies in which circumstances each income type is used and what social insurance contributions must be paid for them.

If you pay wages earned over the fringe benefit accrual month during the following month, you can report the fringe benefits as income for the month in question. In this case, submit your report by the 5th day of the calendar month following the month for which you report fringe benefits as income.

If an employee only receives fringe benefits

In this case, also report fringe benefits on a monthly basis no later than on the 5th day of the month following the fringe benefit accrual month.

Define any day of the month during which the benefit was available to the income earner in accordance with the usage principle as the payment date. For example, it can be the last day of the month.

Also report the tax withholding and compensation collected from an employee as separate income types

You can combine the amount you withhold on the benefits with all the other taxes withheld, and then enter the sum under the income type Withholding tax (402).

If you collect compensation regarding a fringe benefit from an employee’s wages, you must inform the Incomes Register of the amount.

Specific codes are intended for reimbursements related to company cars (401 Compensation collected for car benefit), commuter tickets (415 Reimbursement for employer-subsidised commuter ticket (420 Reimbursement collected for bicycle benefit). However, the income type Reimbursement collected for other fringe benefits (407) is for all other benefits you may provide.

Exception: in some situations, the telephone benefit can be reported once a year

This benefit arises when the employer pays the costs of the telephone subscription it provides, also paying for the worker’s private use outside working hours.

Indicate the fringe benefit’s tax value under Telephone benefit (330) or under Other fringe benefit (317). If you opt for the income type 317, you must also fill in the type of benefit: Telephone benefit. If you collect reimbursement, indicate it under Reimbursement for other fringe benefits (407).

If the income earner only has a telephone benefit, you can report the telephone benefit in advance on the January report for the entire year, if

• no other income is paid or no other benefit given to the person and
• the telephone benefit is not subject to earnings-related pension, unemployment, or accident and occupational disease insurance contributions.

Such a situation may occur if a telephone benefit has been given to a YEL or MYEL insured self-employed person or a shareholder, for example.

Report the telephone benefit to the Incomes Register on an earnings payment report and use the aforementioned income types. In addition to reporting the payer’s and recipient’s information, also specify the types of exception to insurance:

• No obligation to provide insurance (earnings-related pension insurance)
• No obligation to provide insurance (unemployment insurance)
• No obligation to provide insurance (accident and occupational disease insurance).

Read more about fringe benefits and how to report them.