Correcting earnings payment data reported to the Incomes Register
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 should be reported directly to the relevant authority.
- Note that payments recovered on 1 January 2019 or later are reported to the Incomes Register, even if the original income had been paid prior to 2019.
Incorrect or incomplete reports must be corrected without delay
The employer or other payer must correct any errors in their reports without delay after becoming aware of the error. Income earners who notice an error in their information must ask the payer to correct it.
- Data on an unjust enrichment must be submitted without delay after the unjust enrichment has been noticed, and no later than one month after the unjust enrichment was detected.
- The information on amounts paid back must be reported no later than on the fifth calendar day after the day of becoming aware of the payment of the collected amount, its payer and the unjust enrichment to which the payment is connected.
The data reported to the Incomes Register can be maintained and corrected as long as it is retained 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.
What data should be corrected?
Any incorrectly entered information on the report, whether mandatory or complementary, must be corrected. Information missing from the original report must be included in the replacement report.
For example, if the income data on an earnings payment report changes so that also the amount of the employer’s health insurance contribution changes, the payer must correct the total amount of the employer's health insurance contributions reported on the employer’s separate report in addition to the earnings payment report.
It is irrelevant for the correction how the original report was submitted. For example, reports submitted via the technical interface can be corrected using the online form in the e-service, and reports submitted via the upload service can be corrected via the technical interface.
It is also irrelevant for the correction of reports whether monetary wages, for example, were reported to the Incomes Register as a total amount or in itemised form (reporting methods 1 and 2).
- Note, however, that if the payer corrects information on monetary wages using the e-service online form, the selected reporting method cannot be changed together with the correction.
Various error situations
An error on a report can be related to reporting or payment. A reporting error means that the income was correctly paid but was reported to the Incomes Register incorrectly. A payment error means that the report was correct, but the amount of income paid was incorrect.
A reporting-related error arises when the income was correctly paid but was incorrectly reported to the Incomes Register. This could be the case when there is a typing error in a report concerning an income earner, for example, or the income paid has been reported under an incorrect income type.
The error could also be due to incorrectly entered mandatory data or failure to report mandatory data. If a fringe benefit available to the income earner has not been reported, for example, this must be corrected. A correction must also be made if the insurance information of an income type or details on an income earner who is a non-resident taxpayer has been reported incorrectly or not reported at all.
If incorrect data was submitted on the original report or information was missing, the report must be corrected using a replacement report. The number of corrections is not limited, i.e. data can be corrected several times.
There may also be a need to correct a report for some reason other than an error. The work circumstances or the income earner’s status as a taxpayer may change, in which case the original report needs to be retroactively corrected using the replacement report. For example, if the duration of a foreign income earner’s employment is extended so that a non-resident taxpayer becomes a resident taxpayer, this information must be corrected.
Payment errors are situations where the report is correct, but the amount of income paid was too small or too large. Payment errors can be corrected in different ways, and a replacement report does not always need to be submitted.
If the income earner has been paid too little in wages – for example, payment of overtime compensation was forgotten – the original report is not corrected. In such a case, a new report is submitted to the Incomes Register about the forgotten payment no later than on the fifth calendar day after the payment date.
Correcting withholding tax
The amount of withholding tax may also have been too high or too low. The payer may have made a calculation error, for example, or used an incorrect withholding rate. Under certain conditions, the payer can correct the amount of tax withheld. For examples on correcting withholding tax, please refer to the instructions Correcting data in the Incomes Register (section 2.3.).
Negative figures can only be reported in exceptional situations
Income types cannot be corrected in the Incomes Register using negative figures, i.e. figures with minus signs. Incorrectly reported or incorrectly paid income is corrected by submitting a replacement report that states the correct amount of income or its changed nature, e.g. if the income paid is changed to unjust enrichment.
In some exceptional situations, certain income types, such as withholding tax and the employee's social insurance contributions, may be negative figures. Such a situation could also arise if, for example, the employment relationship has ended and the tax withheld from the income paid to the income earner has been too high and no further payments are made to the income earner in the same calendar year.
In some situations, the income earner is not entitled to a payment made to them and reported in the Incomes Register. An unjust enrichment occurs when, for example, a payment has been made on incorrect grounds, to the wrong person, or in an incorrect amount.
Unjust enrichment must be reported without undue delay and no later than within one month after the unjust enrichment was noticed.
An unjust enrichment must always be reported when the payer separately recovers the excess amount paid from the income earner. It is also advisable to always report an unjust enrichment if the overpayment is not corrected immediately and in full in connection with the next payment of wages.
- If the overpayment is corrected in the following payments of wages as advance pay deducted from gross wages, only the gross amount actually paid to the income earner, with the advance payment deducted, needs to be reported to the Incomes Register.
It is important to separate an unjust enrichment from other payments in order to ensure that the correct income is used as the basis of benefits granted to the income earner, for example.
There are two ways to report an unjust enrichment. The method of reporting depends on whether the income has already been reported to the Incomes Register as other income or if the unjust enrichment paid was identified before reporting the data.
For examples on reporting an unjust enrichment, please refer to the instructions Correcting data in the Incomes Register (section 3).
Recovery of a payment
When an income earner pays a mistakenly paid unjust enrichment or other payment back to the payer, the payer must report the repayment to the Incomes Register. The recovered amount is not corrected on the original report; instead, the recovered amount is reported on a new report during the pay period in which the income is recovered.
The income paid can be recovered as either a gross or net amount.
- In gross recovery, the payment is recovered in the same amount as it was paid to the income earner, including withholding tax.
- In net recovery, the payment is recovered from the income earner as a net amount, i.e. the payer deducts the tax withheld from the amount. The payer deducts the withheld tax from other taxes paid to the Tax Administration.
For examples on the recovery of a payment and reporting it, please refer to the instructions in Correcting data in the Incomes Register (section 4).
For more detailed information and examples of corrections, refer to Correcting data in the Incomes Register.