Correcting earnings payment data reported to the Incomes Register
Any errors in wage income paid on or after 1 January 2019 must be corrected in the Incomes Register.
If there is an error in a payment made before 2019, the information must be corrected directly by contacting the relevant authority. Exceptions include payments recovered on or after 1 January 2019 that are reported to the Incomes Register, even if the original income had been paid prior to 2019.
Payers must correct any incorrect or incomplete reports immediately
The employer or other payer must correct any errors in earnings payment data they have reported immediately after becoming aware of the error.
Information on unjust enrichment must be reported no later than within one month after becoming aware of the unjust enrichment.
Information on a recovered amount must be reported no later than on the fifth calendar day after the day of becoming aware of the repayment, its payer and the unjust enrichment to which the repayment is connected.
If an income earner notices any error in their data, they must request the payer to correct the error in the Incomes Register. The Incomes Register authority or income earners cannot correct data in the Incomes Register.
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 ten years from the beginning of the year following the year in which the data was registered.
Data is usually corrected by submitting a replacement report
Any errors in earnings payment data is usually corrected by submitting a replacement report. In certain situations, the original report must be cancelled, after which a new report with correct data must be submitted.
All incorrect data must be corrected
Any incorrectly entered data on a report, whether mandatory or complementary, must be corrected. Data missing from the original report must also be included in the replacement report.
If the income entered on an earnings payment report changes in such a manner that the amount of the employer’s health insurance contribution also changes, the payer must also correct the employer’s separate report.
Correct data primarily via the technical interface or in the e-service
It is recommended that data be corrected via the technical interface or in the e-service How the original report was submitted is irrelevant considering the correction of data. For example, a report submitted via the technical interface can be corrected using the web form in the e-service, and a report submitted via the upload service can be corrected via the technical interface.
Various error situations
An error in a report may be related to reporting or payment.
A reporting error means that income was paid correctly but reported to the Incomes Register incorrectly. Reporting errors include the following situations:
- There is a typing error in a report concerning an income earner.
- Paid income was reported using an incorrect income type.
- Mandatory data was reported incorrectly or not at all. Example:
- a fringe benefit used by an income earner has not been reported
- an income type’s insurance information was reported incorrectly or not at all
- information on a non-resident taxpayer was reported incorrectly or not at all.
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.
The number of corrections that can be made is unlimited.
A payment error means that a report was correct considering the income paid, but the amount of the income paid was too high or too low.
If an income earner has been paid too little in wages – for example, the payment of overtime compensation was forgotten – the original report must not be corrected. In such a case, a new report must be submitted to the Incomes Register regarding the forgotten payment and a subsequent payment no later than on the fifth calendar day after the payment date. If an income earner has been paid too much in wages, the overpayment must be reported as an unjust enrichment.
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.
Any too large an amount of tax withheld must be corrected by reducing tax withheld from subsequent wages paid during the same calendar year.
If no wages are paid to the income earner during the same calendar year, too large an amount of tax withheld can be rectified by returning the excess amount withheld to the income earner. The withheld amount returned to the income earner must be reported to the Incomes Register using a separate earnings payment report, if the extraneous amount withheld has been paid in the recipient’s account. The extraneous amount withheld must be reported to the Incomes Register as a negative amount.
The extraneous amount withheld must be returned to the income earner during the same calendar year. It cannot be adjusted during the following year by reporting a negative amount withheld. If the extraneous amount withheld cannot be returned on time, it can no longer be returned to the income earner. Instead, the full withheld amount will be accredited to the income earner in the payment year’s taxation.
For examples of how to correct withholding tax, see instructions Correcting data in the Incomes Register (Section 2.3).
Negative amounts can only be reported in exceptional situations
Income data cannot be corrected in the Incomes Register using negative amounts, i.e. amounts with minus signs. Incorrectly reported or incorrectly paid income must be 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 an unjust enrichment.
In some exceptional situations, certain income types, such as withholding tax and the employee’s social insurance contributions, can be reported as negative amounts. Such a situation may exist 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 during the same calendar year.
When using negative amounts, it should be remembered that
- negative withholding tax can only be submitted on the earnings payment report if the withholding tax cannot be adjusted by reducing tax withheld from subsequent wages.
Important when reporting and correcting data
- The earnings payment report is only used to report amounts actually paid to the person in question, plus taxes and other charges actually collected from them. Withholding tax, employee contributions or other reimbursements must not be reported to the Incomes Register if they have not actually been collected.
- Any technical deductions, such as transfers of income from one pay type to another, made in the payroll system must not be reported to the Incomes Register.
- Artificial recoveries must not be reported to the Incomes Register.
For more detailed information and examples of corrections, see instructions Correcting data in the Incomes Register.
Correcting data in the Incomes Register