Reporting accident insurance data to the Incomes Register
An employer must take out accident and occupational disease insurance for its employees if the following conditions are met:
- The employees have an employment relationship, a public-sector employment relationship or other relationship falling under the Employment Contracts Act with the employer
- The wages subject to the occupational accident insurance contribution paid by the employer to all of its employees during a calendar year amount to more than EUR 1,300 total (in 2020)
The insurance must be taken out before the commencement of the employment relationship, i.e. the insurance must be valid before the employee starts work.
There are no age limits or earnings limits for individual employees in the case of the accident and occupational disease insurance.
The term ‘employment relationship’ refers to an employment relationship as laid down in the Employment Contracts Act. A person who does not have an employment relationship with a limited liability company or other corporation but who receives compensation for work done in a leading position in the corporation and whose share of ownership does not exceed the percentage limits laid down in law is also considered an employee. Here, the term ‘leading position’ refers to being a managing director/CEO or a member of the board of directors or being in a similar position, or having corresponding actual control in the corporation. Family members of a shareholder who have an employment relationship with the company must also be insured.
The exception “No obligation to provide insurance (accident and occupational disease insurance)” must not be selected on the earnings payment report for an employee covered by occupational accident insurance.
Accident and occupational disease insurance premiums are not reported to the Incomes Register
The insurance premiums are paid in accordance with the invoices of the occupational accident insurance company, and the premiums are not reported to the Incomes Register. However, if the reported income is subject to occupational accident insurance, the insurance details, i.e. the employee’s occupational class and, in certain cases, also the occupational accident insurance company identifier and the policy number of the insurance must be reported to the Incomes Register.
Report the occupational class to the Incomes Register
If the income earner is covered by the occupational accident insurance and they receive earnings subject to the occupational accident insurance premium, the occupational class is mandatory information on the earnings payment report. Reporting the occupational class is also recommended when the income earner is not covered by the occupational accident insurance but the payment made to them was earned in an employment relationship.
Always report the occupational class using Statistics Finland’s classification of occupations (TK10) (www.stat.fi), which is used in the Incomes Register. The occupational class codes used in the Incomes Register consist of five digits. In addition to the occupational class code, voluntary supplementary information that can be reported for an income earner includes other occupational titles or classifications. However, insurance contributions are primarily based on the five-digit codes.
The Statistics Finland classification of occupations code set (TK10) used in the Incomes Register is not the same as the official classification of occupations (Ammattiluokitus 2010) code set maintained by Statistics Finland.
If an employee performs work falling under more than one occupational class, report the occupational class of the work the person performs the most. If the employee works the same amount of time in all the different duties, enter the occupational class that has the highest accident risk. The risk classification of the occupational classes included in the Incomes Register maintained by the Finnish Workers’ Compensation Center (tvk.fi) can be used as an aid when assessing the accident risk.
If necessary, your accident insurance company can assist you and provide instructions on how to choose the occupational class. See the contact information of accident insurance companies (tvk.fi).
Exception: the employer is not under obligation to provide occupational accident insurance to the income earner
The employer is not obligated to provide insurance to the income earner when the threshold for insuring is not met (in euros), the income earner is self-employed or the income earner is not covered by Finnish social security. Such a case forms an exception to insurance. An exception to insurance always applies to the entire earnings payment report.
You should check, however, whether there is an obligation to provide insurance with respect to the other insurance premiums.
The insurance exception type “No obligation to provide insurance (accident and occupational disease insurance)” must be used in the earnings payment report in the following cases:
- A small employer pays wages amounting to less than EUR 1,300 to all of its employees during a calendar year (in 2020)
- The employer is the Government (accident and occupational disease insurance for persons employed by the Government is handled by the State Treasury)
- The income earner is an entrepreneur obligated to take out self-employed person’s pension insurance (YEL), such as a partner in a general partnership or a shareholder or partner in a corporation or partnership who is personally responsible for the obligations and commitments of the corporation or partnership
- The limits concerning employment relationships and entrepreneurship are set in the same manner as the limits concerning earnings-related pension insurance contributions for employees and self-employed person’s pension insurance
- An entrepreneur may also be an income earner with an employment relationship, in which case the mandatory occupational accident insurance covers the work done in the employment relationship
- An entrepreneur’s spouse or common-law partner is not considered to be in an employment relationship as referred to in the Employment Contracts Act with the self-employed individual
The Type of exception to insurance 'Not subject to Finnish social security (accident and occupational disease insurance)' is specified on the earnings payment report in the following situations:
- The income earner has an A1 certificate that shows that they are not subject to Finnish social security based on the EU social security regulations or an international agreement by which Finland is bound.
Read more about exceptions to insurance (Section 6).
Is an income type subject to the accident and occupational disease insurance premium?
Earnings from work are used as the basis for the insurance premium and compensation for loss of earnings pursuant to the Workers’ Compensation Act. When determining the earnings from work, wages, performance bonus or any other compensation that has been paid as compensation for the work, or on which an agreement has been made, is considered.
The default setting for the supplementary income types (series 200) and separately reported income types (series 300) in wages reporting method 2 is whether or not the income type is subject to social insurance contributions. The default value for some of the income types can be changed as necessary.
If some part of the payment made is not compensation paid for work and is thus not included in the basis for the social insurance contribution, that part must be reported as excluded from the insurance premium using the “Type of insurance information”.
- Wages – Codes – Income types 2021 (pdf) (also includes income type specific information on whether the income is subject to specific insurance premiums)
- Reporting data to the Incomes Register: monetary wages and items deducted from wages
- Reporting data to the Incomes Register: insurance-related data
Report the insurance company’s company identifier and policy number if the employer has taken out more than one occupational accident insurance policy
The occupational accident insurance company identifier and the accident and occupational disease insurance policy number are mandatory if the employer has taken out more than one statutory accident and occupational disease insurance policy for its employees.
The company identifier of a Finnish insurance company is its Business ID. If the occupational accident insurance company does not have a Finnish customer identifier, use the foreign identifier.
The policy number can be found on, for example, the occupational accident insurance policy document.
Don’t forget to report absences
When determining absence data, accident insurance companies require data to determine the compensation for loss of earnings (daily allowance, rehabilitation allowance, occupational accident pension). If an employer has not reported the absence data to the Incomes Register, the insurance company will have to request the data from the employer. By reporting the absence data to the Incomes Register, the employer will not have to reply to additional requests for clarification, and income earners will be reimbursed more quickly. As a result, any share to be paid to the employer will also be known and available for deduction more quickly.