Reporting the insurance information of a YEL or MYEL insured self-employed person
No earnings-related pension, unemployment, or accident and occupational disease insurance contributions need to be collected from the wages paid to a self-employed person insured under the self-employed persons' pensions act (YEL) (yrittäjän eläkelaki 1272/2006) or the farmers' pensions act (MYEL) (maatalousyrittäjän eläkelaki 1280/2006). However, the employer's health insurance contribution is collected from the wages.
When reporting wages paid to a person insured as a self-employed person, it is important to report the earnings-related pension insurance information (YEL or MYEL) and the following Type of exception to insurance: No obligation to provide insurance (earnings-related pension, unemployment, and accident and occupational disease insurance).
If you do not specify the earnings-related pension insurance (YEL or MYEL) details and the type of exception to insurance, the earnings-related pension insurance contributions and employer's health insurance contributions may be levied twice. Additionally, unemployment insurance contributions and accident and occupational disease insurance contributions may be incorrectly collected.
The insurance provider confirms the YEL or MYEL earnings from work for the self-employed person. The YEL or MYEL earnings from work are used as the basis of the earnings-related pension insurance contribution and the self-employed person's health insurance contribution instead of the wages paid to the self-employed person.
How to report the insurance information of a YEL or MYEL insured self-employed person
Report the wages paid to the self-employed person using the Incomes Register's income types.
Specify the earnings-related pension insurance information:
- Pension insurance for the self-employed (YEL)
- Pension insurance for farmers (MYEL).
Do not report the earnings-related pension provider or the pension policy number.
Also specify the type of exception to insurance:
- No obligation to provide insurance (earnings-related pension insurance)
- No obligation to provide insurance (unemployment insurance)
- No obligation to provide insurance (accident and occupational disease insurance)
In the Incomes Register's e-service, you can find this entry under 'Exception to insurance'.
Remember! Do not report the type of exception to insurance for the health insurance. The wages paid to the self-employed person is subject to the employer's health insurance contribution. The information on the amount of health insurance contributions is reported once per month on an employer's separate report.
The occupational class is not reported
The occupational class in accordance with the Incomes Register´s classification of occupations (TK10) must be reported only if the employee is covered by an occupational accident insurance. Because YEL or MYEL insured self-employed persons are not under obligation to take out an accident and occupational disease insurance, the occupational class does not need to be reported.
A YEL-insured self-employed person is not deemed to be a partial owner
'Partial owner' is reported as additional income earner information if the employee is a partial owner as specified in the unemployment security act (työttömyysturvalaki 1290/2002). If the income earner is a YEL-insured shareholder-entrepreneur, the Partial owner entry is not made, because the self-employed person is not under obligation to take out unemployment insurance.
Did you forget to report the No obligation to provide insurance information?
If you submitted an earnings payment report for wages paid to a self-employed person, but forgot to report the type of exception to insurance, i.e., the No obligation to provide insurance information, correct the data in the Incomes Register without delay.
Correct the insurance exception details by cancelling the original report and submitting a new report.
Also remember to submit an employer's separate report
You must also report the employer's health insurance contributions paid on the basis of the wages paid to the self-employed person on an employer's separate report. Read more about the employer's separate report.
Reporting the wages paid to a retired self-employed person (no YEL or MYEL insurance)
If you pay wages to a self-employed person who continues working while on old age pension, and the YEL or MYEL insurance is no longer in effect, leave the section Earnings-related pension insurance information blank.
Report the additional income earner detail: 'Self-employed person, no obligation to take out YEL or MYEL insurance'.
Also specify the type of exception to insurance:
- No obligation to provide insurance (earnings-related pension insurance)
- No obligation to provide insurance (accident and occupational disease insurance)
- No obligation to provide insurance (unemployment insurance)
- No obligation to provide insurance (health insurance).
The business operations are small-scale (no YEL or MYEL insurance)
If the person is not subject to YEL pension insurance due to their business operations carried out as an entrepreneur being very small-scale operations, leave the section Earnings-related pension insurance information blank.
Report the additional income earner detail: 'Self-employed person, no obligation to take out YEL or MYEL insurance'.
Also specify the type of exception to insurance:
- No obligation to provide insurance (earnings-related pension insurance)
- No obligation to provide insurance (accident and occupational disease insurance)
- No obligation to provide insurance (unemployment insurance)
- No obligation to provide insurance (health insurance).
The self-employed person has taken out a voluntary YEL or MYEL insurance
If a self-employed person has taken out a voluntary YEL or MYEL insurance policy and the requirements of the obligation to take out insurance are not met, report the following data:
- Earnings-related pension insurance information: Pension insurance for the self-employed (YEL) or Pension insurance for farmers (MYEL).
- Type of additional income earner data: 'Self-employed person, no obligation to take out YEL or MYEL insurance'.
Also specify the type of exception to insurance:
- No obligation to provide insurance (earnings-related pension insurance)
- No obligation to provide insurance (accident and occupational disease insurance)
- No obligation to provide insurance (unemployment insurance)
- No obligation to provide insurance (health insurance).