Report wages paid to summertime employees to the Incomes Register
5/29/2023When you hire a summer employee, you need to report the wages and fees you have paid to the Incomes Register.
There is no lower limit for the amount paid or any age limit for reporting – you need to report all wages and fees you have paid, regardless of the amount or the age of the payment recipient.
The reporting obligation also applies to short-term employment relationships.
Identify your obligations as an employer
Your obligations depend on whether you pay wages or non-wage compensation for work. The amount of wages and the employee’s age are also significant factors.
Identify your obligations using the Finnish Tax Administration’s decision wizard
Report paid wages and fees to the Incomes Register
Report the data to the Incomes Register in electronic format. You can transfer the data directly from your payment system through an API or submit an earnings payment report in the Incomes Register’s e-service. Also, submit the employer’s separate report, if required.
Read the instructions using the e-service and sign in to the Incomes Register.
Non-wage compensation for work paid to a freelancer must also be reported to the Incomes Register if the service provider is not registered in the prepayment register. You can check this in the Business Information System.
You can also calculate and pay wages in the free Palkka.fi service (available in Finnish and Swedish, link to Finnish). The service automatically sends the reports required to the Incomes Register without needing to submit a separate report. You cannot pay non-wage compensation for work in the Palkka.fi service.
Submit data within five days of the payment date
Submit data about payments made to the Incomes Register within five days of the payment date.
You can submit data in advance. For example, wages and fees can be reported 45 days before the payment date. You must include the current date, i.e. the day when you submit your report, in the 45-day period. Read more about the deadlines for data reporting.
Collect the required data ready
You require the following data for reporting:
- pay period – the period for which wages are paid as agreed in the employment contract
- the name and identifier of the payer; for example, a personal identity code or business ID
- the name and identifier of the recipient; for example, a personal identity code or business ID
- the compensation paid
- the amount of wages and any fringe benefits
- the amount of non-wage compensation for work without value added tax.
If you pay wages, also identify:
- information about belonging to the employer register, i.e. whether you are a casual employer or regular employer – this determines when you need to submit the employer’s separate report;
- insurance information – check what insurance you need to take out for individuals; for example, the amount of wages and the employee’s age have an impact on the insurance obligation;
- the recipient’s tax card and tax rate – you require them to withhold taxes;
- occupational class – if you pay more than 1,400 EUR in wages to one or more individuals during the calendar year, you need to take out accident and occupational disease insurance for your employees; contact your accident insurance provider for information about the occupational class;
- the total amount of the employer’s health insurance contribution; report the total amount by submitting the employer’s separate report.
There is no income type for annual holiday pay in the Incomes Register
Report annual holiday pay, i.e. wages paid during a holiday, using the income type Time-rate pay (201). Report holiday bonuses using the income type Holiday bonus (213).
If annual holiday pay was paid on the grounds of performance pay or commission, report it using the income type Commission (220) or Contract pay (227) according to the grounds of the income.
If the employee does not take any annual holiday, report the compensation paid using the income type Annual holiday compensation (234). This income type is also used to report holiday bonuses in the construction sector.
If you pay compensation for additional days off supplementing the annual holiday, report it using the income type Other compensation (216).
We recommend that you also indicate the reason for paid absences (e.g. annual holiday), the period of absence, and the amount of wages paid during the period of paid absence.