Which earlier practices will the Incomes Register replace?
The Incomes Register will replace a number of information flows and reports:
- The most important annual information returns for earnings to the Tax Administration, earnings-related pension providers, the Employment Fund and workers’ compensation insurance providers
- Various employers’ monthly reporting obligations
Employers do not need to submit annual reports to the Social Insurance Institution of Finland Kela, but applying for benefits is currently a strain on employers. When a worker applies for benefits, their employer needs to submit payslips or certificates and provide various other information to Kela. If employers submit earnings payment reports containing all Incomes Register’s complementary data, there will be less need for the following reports, applications and forms: Employers’ applications for health insurance benefits (Y17) and associated earnings from work, certificates of pay, TT4 certificates for establishing whether the condition regarding previous employment has been met and SV 18 applications for the reimbursement of annual leave costs for people receiving parental allowance or family leave compensation for employers.
The number of parties using the data held in the Incomes Register will increase in 2020. From 2021 onwards, the Incomes Register will also replace various annual information returns relating to pensions and benefits that must currently be submitted to the Tax Administration: annual information returns for pensions and benefits, retrograde pensions, unemployment benefits payment days, and pensions and other benefits paid to non-resident taxpayers.
|Reporting earnings payment data||Recipient/user of the information||Reports for the year 2018||Reports for the year 2019||Reports for the year 2021|
|Employer’s and payer’s
annual information return (7801)
|Finnish Tax Administration||1||0||0|
|Non-resident taxpayer’s annual
information return (7809) type
|Finnish Tax Administration||1||0||0|
|Self-assessed tax return (4001),
employers’ part and tax type 25
(non-wage compensation for work)
for other self-assessed category taxes
|Finnish Tax Administration||12||0||0|
|Itemisation of pensions and benefits
(form 7803 and data record specification and VSELERIE data record specifications)
|Finnish Tax Administration||1||1||0|
|Itemisation of retrograde pensions (form 7801 and VSTAKELE data record specification)||Finnish Tax Administration||1||1||0|
|Unemployment benefits payment days (VSKORVPV data record specification)||Finnish Tax Administration||1||1||0|
|Non-resident taxpayer’s annual information return for type B and P payments (form 7809 and VSRAERIE data record specifications)||Finnish Tax Administration||1||1||0|
|NT1 form (6134a, notification of tax being withheld in Finland when work is performed in another Nordic country)||Finnish Tax Administration||1/worker/work performed abroad||0||0|
|NT2 form (5052a, notification of tax not being withheld in Finland when work is performed abroad)||Finnish Tax Administration||1/worker/work performed abroad||0||0|
|Employee Leasing Notice, employer and payer of wages in another country (6147a)||Finnish Tax Administration||1/worker/period of work||0||0|
|Notification of wages earned abroad where the six-month rule is applied to withholding tax (5053a)||Finnish Tax Administration||1/worker||0||0|
|Application/amendment for prepayments of unemployment insurance contributions||The Unemployment Insurance Fund||0/1||0/1||0/1|
|Wage sum report||The Unemployment Insurance Fund||1||0||0|
|Pension insurance provider’s annual information return or monthly report||Pension insurance provider||1 or 12||0||0|
|Pension insurance provider’s quarterly employment report||Pension insurance provider||4||0||0|
|Reporting of wages to occupational accident insurance providers||Occupational accident insurance providers||1||0||0|
Benefits of complementary data
The Incomes Register will replace annual information returns on earnings, pensions and benefits to the Tax Administration, earnings-related pension providers, the Employment Fund and occupational accident insurance providers in all cases, but the benefits of the Incomes Register will increase if complementary data is submitted to the register in addition to mandatory information.
Complementary data provides further details on mandatory information that would not otherwise be sufficient for the awarding of statutory benefits, for example. Such data can usually be pulled from businesses’ payroll systems. Complementary data relates to income data that the payer must report to the Incomes Register. For example, such data includes more detailed itemisations of income types, certain details relating to a worker’s employment relationship and the applicable collective agreement, records of absences, and the earnings periods of specific income types.
It is recommended that information be reported to the Incomes Register as comprehensively as possible. Once the information has been entered into the Incomes Register, the payer will not be asked to supply it again. If complementary data is not reported, users of the data may need to contact the payer separately at a later date.
Data reported to the Incomes Register will be used, among other things, for the calculation of benefits and customer fees and to assist various authorities in their supervisory duties and the compilation of statistics. Complementary data reported to the Incomes Register will also replace various pay declarations and certificates that previously had to be requested from employers and income earners.