Reporting an employer-subsidised commuter ticket benefit
An employer-subsidised commuter ticket, often called employer-provided commuter ticket, is a personal public transport ticket provided by the employer to the employee for commuting between the employee's residence and place of work.
The benefit must be reported to the Incomes Register even if no taxable benefit is formed for the employee.
Find out the value of the fringe benefit
The employer reports to the Incomes Register the monetary value of the fringe benefit, which is typically its annually determined taxable value.
See the taxable values of fringe benefits from the Finnish Tax Administration’s decision
Of the employer-subsidised commuter ticket benefit, EUR 3,400 is tax-exempt income. The tax-exempt bicycle benefit reduces the maximum tax-exempted amount of the employer-subsidised commuter ticket benefit.
How to report an employer-subsidised commuter ticket
Report an employer-subsidised commuter ticket benefit to the Incomes Register every month with an earnings payment report. You can report the benefit in a separate report or in conjunction with the payment of wages.
You can give the benefit either as an addition to wages or by deducting it from the amount of wages. See the following instructions for what you should report in these situations:
Reporting a benefit
Report
- the tax-exempt share of the the employer-subsidised commuter ticket benefit with income type 341 Employer-subsidised commuter ticket, tax-exempt share.
- the share considered part of wages with income type 342 Employer-subsidised commuter ticket, taxable share.
Withholding tax and reimbursement from employee
Add the amount you withhold for the employer-subsidised commuter ticket benefit to the other amounts withheld reported on the same earnings payment report and report them as a total sum with income type 402 Withholding tax.
If you collect a reimbursement for the benefit from the employee, report it in full with income type 415 Reimbursement for employer-subsidised commuter ticket.
Also deduct the collected reimbursement from the amount considered part of wages. If there is no share considered part of wages or if the share does not cover the entire sum, deduct the reimbursement or the rest of the reimbursement from the tax-exempt share. Report the remaining amount or difference with income type 342 or 341.
Reporting the benefit annually
If the tax-exempt employer-subsidised commuter ticket benefit is not processed in the payroll system at all, you can report the total amount of an employee’s employer-subsidised commuter ticket benefit to the Incomes Register on an earnings payment report once a year.
An employer and an employee can agree that the employer-subsidised commuter ticket benefit is granted by deducting an amount corresponding to the amount of the tax-exempt fringe benefit from the employee’s monetary wages.
In this case, the benefit reduces the employee’s taxable gross wages from which taxes are withheld and health insurance contributions are collected. Earnings-related pension, unemployment insurance, and accident and occupational disease insurance contributions must still be calculated based on the wage amount from which the amount of the fringe benefit has not yet been deducted.
Reporting a benefit
Report the benefit as follows:
- Report the tax-exempt share of the benefit with income type 341 Employer-subsidised commuter ticket, tax-exempt share.
- Enter the following ‘Type of insurance information’ information for the income type:
- Subject to earnings-related pension insurance contribution: Grounds for insurance contribution: Yes
- Subject to unemployment insurance contribution: Grounds for insurance contribution: Yes
- Subject to accident and occupational disease insurance contribution: Grounds for insurance contribution: Yes
If the amount of the benefit exceeds the tax-exempt share, report the exceeding share with income type 342 Employer-subsidised commuter ticket, taxable share.
Withholding tax and reimbursement from employee
Add the amount you withhold for the employer-subsidised commuter ticket benefit to the other amounts withheld reported on the same earnings payment report and report them as a total sum with income type 402 Withholding tax.
If you collect a reimbursement for the benefit from the employee, report it in full with income type 415 Reimbursement for employer-subsidised commuter ticket.
Also deduct the collected reimbursement from the amount considered part of wages. If there is no share considered part of wages or if the share does not cover the entire sum, deduct the reimbursement or the rest of the reimbursement from the tax-exempt share. Report the remaining amount or difference with income type 342 or 341.
Correcting fringe benefits
If there are errors in the data you have reported, correct them as soon as possible after the error is discovered.
How do I correct fringe benefits?
Detailed instructions and examples
See examples and read more about reporting fringe benefits in different circumstances:
Reporting data to the Incomes Register: fringe benefits and reimbursement of expenses
See also: