Report your earnings payment data to the Incomes Register from 2019
Wages and earned income will be reported to the Incomes Register from 1 January 2019. The employer or other payer, such as an association or household, will report the information after each payment transaction.
Data reported to the Incomes Register includes wages, fringe benefits, bonuses, non-wage compensations for work and other earnings. Tax-free and taxable reimbursements of expenses must also be reported.
Wages and earned income paid in 2018 and before will be reported separately to each authority as before. The last annual earnings payment information returns will be submitted to the Finnish Tax Administration, earnings-related pension providers, occupational accident insurance companies and the Unemployment Insurance Fund for 2018.
Information on benefits and pensions will be reported to the Incomes Register from 2020.
Please note that
- there will be no monetary minimum threshold for information reported to the Incomes Register;
- travel compensations must be reported even if no wages are paid;
- compensations paid to the employer are not reported; and
- capital income paid by the employer, such as guarantee commissions and interest on wage receivables, must also be reported.
What information will be reported to the Incomes Register?
The employer or other payer will report paid wages and other earned income with a separate earnings payment report for each income earner. Each report will provide the data of a single payment made to a single income earner. However, several different income types, such as monetary wages, fringe benefits and kilometre allowances, can be reported for the same income earner on the same report.
Information reported on the earnings payment report
- Identifying information
- For example, the details of the income earner and payer, and the pay period and payment date.
- Wages and earned income
- For example, various wages, overtime or emergency bonuses, and compensations related to the termination of employment or temporary lay-offs.
- Separately reported income types, if paid
- For example, fringe benefits, reimbursement of expenses, non-wage compensations for work and compensations for use.
- Payments based on the organisation's profit sharing
- Payments subject to withholding tax, non-wage compensation for work and payments to athletes only.
- Deducted items
- For example, withholding tax, tax at source and social insurance contributions charged from the employee.
- Employment details
- For example, the type, form, duration, unit price, weekly working hours and occupational class of the employment.
- Insurance information
- For example, the policy numbers of earnings-related pension providers and occupational accident insurers.
- Absence data
- For example, paid and unpaid absences and their reasons and pay for the period of paid absence.
- Unjust enrichment
- The amount of unjust enrichment and the pay period and income type in which it was obtained.
- The recovered amount and pay period and income type from which it is being recovered.
Information not reported on the earnings payment report
- membership fees of labour unions or unemployment funds;
- elected official fees paid directly to a political party;
- sensitive causes of absences
- the majority of capital income, such as interest or dividends
- reimbursement of travel and accommodation expenses paid by the employer based on a receipt
- income from work specified for an entrepreneur insured in accordance with the Self-Employed Persons' Pensions Act or Farmers’ Pensions Act.
Employer's separate report
If required, employers must file a separate report on information not involving any individual income earner. A separate report will be required when
- reporting the total amount of health insurance contributions and possible deductions from that amount paid by the employer in the month in question; or
- the payer is registered in the Employer Register and has paid no wages at all during the month in question (No wages payable data item).
Both mandatory and complementary data will be reported to the Incomes Register
The information reported to the Incomes Register with the earnings payment report can be mandatory data required on each report, or complementary data. The complementary data will serve to clarify the mandatory data.
Mandatory data includes
- identifying information, such as the pay period and payment date, and the details of the payers and recipients of each payment;
- some of the income types on the earnings payment report (e.g. fringe benefits and remuneration of expenses) if the income in question was paid; and
- at least the total sum of monetary wages (lower detail level of monetary wage reporting).
If the monetary wages are reported as a total sum, some of the data users may have to request more detailed information, since the lower level of detail is not sufficient for all users.
Complementary data includes
- complementary income types, such as the individual reporting of monetary wages (greater level of detail); and
- other additional information, such as certain information concerning the employment relationship, absence information and the earnings periods of the income types.
Complementary data should be reported to the Incomes Register as comprehensively as possible, so that all data users receiving information from the Incomes Register can use the information at the required level of detail. Complementary data will include the information required by data users as grounds for granting or paying benefits.
Employers who submit the necessary complementary data with the information on paid wages will need to deliver fewer complementary reports. If information is not reported, the data users may be required to request the information from the payer at a later date.
Two ways of reporting monetary wages to the Incomes Register
Itemised reporting of monetary wages (reporting method 2)
- It is recommended to report monetary wages with specific, complementary income types (greater detail level of monetary wage reporting). With this reporting method, the wage is generated from the reported earnings, and the payer does not have to calculate the wage by adding up earnings.
- Itemised information reported to the Incomes Register has a sufficient level of detail for the data users.
Reporting of monetary wages as a total amount (reporting method 1)
- At a minimum, monetary wages must be reported as a total amount (lower-detail level of monetary wage reporting). If the wages are reported as a total amount, some data users may have to request more detailed information, since a lower level of detail is not sufficient for all users.
Please note that methods 1 and 2 cannot both be used on the same report. However, you are free to change reporting methods between reports.
The reporting methods of monetary wages do not affect other complementary data. Even if monetary wages are reported in an itemised manner (reporting method 2), the employer can omit other additional information, such as information on absences or income type earning periods. On the other hand, if the monetary wages are only reported as a total amount (reporting method 1), additional information may still be reported on the same report.
Fringe benefits, remuneration of expenses and other separately reported income
In addition to monetary wages, the payer must report certain income types separately, if paid. Such separately reported income should not be included in the reporting of monetary wages (reporting methods 1 and 2).
Separately reported income must include, for example
- fringe benefits, remuneration of expenses and non-wage compensations for work and compensations for use;
- income related to international work, such as annual wages serving as the basis for insurance contributions;
- the earnings of athletes and performing artists;
- employee stock options;
- the fees of informal carers and household employees; and
- private day care allowance.
Employers must also report any capital income paid, such as guarantee commissions and penal interest on wage receivables.
Therefore, the total income paid to the recipient and reported to the Incomes Register will consist of monetary wages plus separately reported earnings, if any, minus the items deducted from income.
When will paid wages and other payments be reported to the Incomes Register?
Wages paid must be reported to the Incomes Register no later than on the fifth calendar day after the payment date.
- The payment date is the date on which the payment is available for use by the recipient, for example, available for withdrawal from the bank account (payday).
- Saturdays, Sundays and other holidays must be counted when determining the fifth calendar day after the payment date, but if the report's due date falls on a Saturday, Sunday or other holiday, the information can be reported on the following banking day.
Example: The employer pays employee's wages on 15 January 2019. Saturdays, Sundays or other holidays will not affect the calculation of the fifth calendar day after the payment date but, since the report's due date is Sunday, 20 January 2019, the employer must report the paid wages to the Incomes Register by Monday 21 January 2019.
If the recipient receives non-monetary benefits in addition to a monetary payment
- Report all of the recipient's information by the fifth calendar day after the payment date.
Non-monetary payments and benefits
If the recipient only receives non-monetary benefits or payments (e.g. only a fringe benefit such as a car or accommodation benefit, and no monetary payment), report such benefits to the Incomes Register every month, by the fifth day of the calendar month following the month in which the benefit was received.
Individuals and estates
Individuals and estates must report payments on a monthly basis, by the fifth day of the calendar month following the payment month.
Example: A household pays the wages of its hired nanny on 15 January. The household must report the wages to the Incomes Register by the fifth day of the calendar month following the payment month, i.e. by 5 February.
If the individual or estate is registered in the Employer Register, however, the information must be reported by the fifth calendar day after the payment date.
Wages for insurance purposes
Report the amount of wages for insurance purposes each month, by the fifth day of the calendar month following the work.
Wages paid by a substitute payer
The employer must report wages paid by a substitute payer by the fifth day of the following calendar month if the employer is liable for social insurance contributions for the wages.
Report unjust enrichment without delay, and no later than within one month of becoming aware of the unjust enrichment.
Report amounts paid back by the fifth calendar day after the day you received information on the payment of the recovered amount, the payer and the unjust enrichment relating to the payment.
Information on work performed abroad must be reported by the fifth calendar day after the payment date of the first wages paid for such work.
However, information on the employee's periods of residence in Finland can be reported by the end of January of the year following the year of payment.
Deadlines for reports submitted on paper forms
The deadline for reports submitted on paper forms is 8 calendar days instead of the usual 5. Information can be submitted on a paper form only in special circumstances, for example, if filing an electronic report is impossible for an individual, estate, occasional employer or foreign national due to technical obstacles.
Deadline for submitting complementary data
Complementary data should be submitted simultaneously with mandatory data, whenever possible. Thus, users who need the information will not have to request complementary data at a later date.
- Please note that monetary wages must always be reported by the fifth calendar day after the payment date, even if they are reported in an itemised manner by using complementary income types (reporting method 2).
It is not always possible to report complementary data simultaneously with mandatory data, for example, in the case of absences for which the wages will be paid in the middle of the pay period. However, to ensure the timely availability of the information, absences during the previous pay period should be notified on the report of the current pay period at the latest.
Information can also be reported in advance
Payment information can also be reported to the Incomes Register in advance (e.g. directly from the payroll run), but no earlier than 45 days before the payment date.
Some information, such as work and residence periods and absences, can be reported in advance with no time limit. If it is known in advance that, for example, the income earner's fixed-term employment will last one year, the date in question can be reported as the end date of the employment relationship. In contrast, employment relationships starting in the future can be reported to the Incomes Register no earlier than 45 days before the start of employment.
Deadline for the employer's separate report
Employer's separate reports on issues such as the total amount of employer's health insurance contributions paid during the month, must be submitted every month, on the fifth day of the following calendar month.
Erroneous reports must be corrected
Payments made on 1 January 2019 and later are reported to the Incomes Register, and any corrections to be made to these incomes.
If payments made prior to 2019 are corrected in 2019 or later, the corrections should not be reported to the Incomes Register. Corrections to payments made prior to 1 January 2019 will be made directly to each data user.
The employer or other payer must correct any errors in their reports without delay, upon becoming aware of the error. Income earners who notice an error in their information must ask the payer to correct it.
The payer must then file a replacement report in place of the original one. All information must be reported again in the replacement report, i.e. including the information that was correct in the original report.
It must be possible to match the replacement report with the original report in need of correction. For this reason, corrections to data in the Incomes Register must use report references which enable the allocation of the corrections to the correct report.
An income earner can have several valid reports with the same pay period and payment date. A new report will not replace a previously submitted report.
A late fee will only be imposed on mandatory data reported late to the Incomes Register by an employer or other payer. The late fee will be imposed by the Finnish Tax Administration on the basis of information received from the Incomes Register. Late fees will not be imposed on individuals or estates, unless the late report concerns payments related to business activity, agriculture or forestry.
Although the information must, as a rule, be submitted within five calendar day of the payment date, the late fee will not be included in the same deadline. The Finnish Tax Administration will impose a late fee if mandatory data on payments is reported later than on the eighth day of the calendar month following the payment date.
Late fees for Incomes Register reports will be calculated from daily late fees and fees determined by the payment amount.
- A fee of EUR 3 per day will be levied for the first late report submitted in each calendar month, until the information has been reported to the Incomes Register.
- The daily late fee will be levied for a maximum of 45 days, i.e. the maximum fee will be EUR 135.
- However, no late fee will be levied for information submitted on time and corrected within 45 days of the deadline.
More than 45 days
- The late fee for reports submitted more than 45 days late will be EUR 135. A sum equalling 1 percent of the amount of the taxable payment reported late or amount of earned income used as a basis for calculating the pension, whichever is greater.
- If previously reported information is corrected more than 45 days after the deadline, a late fee of one percent of the amount of the taxable payment or amount of earned income used as a basis for calculating the pension, whichever is greater. No late fee will be imposed, however, if the amount of the taxable payment or amount of earned income used as a basis for calculating the pension will not increase owing to the correction.
The maximum late fee will be EUR 15,000.
When data is not reported to the Incomes Register at all, or the data is incomplete, and the payer does not correct the neglect of its own volition before the taxes and contributions are levied, no late fee will be issued. In such cases, possible sanctions will include a tax increase or default payment.
How long will the data be stored in the Incomes Register?
Data is stored in the Incomes Register for 10 years from the beginning of the year following the year in which the data was registered.