Wage income types: 400 series

Items deducted from the income and other payments

The data can be submitted in connection with reporting method 1 (total wages) and reporting method 2 (complementary income types), and also in connection with separately reported income types (1 and 2) in the same report.

Wage income types: 400 series
Code value Income type name Description
401 Compensation collected for car benefit The deductible of a fringe benefit paid by the employee from the taxable value of the car benefit.

The deductible of the car benefit decreases the amount of earnings and taxable benefit on which social insurance contributions are based or eliminates it entirely. If the deductible of the car benefit is lower than the taxable value of the car benefit, the difference between the value of the car benefit and the compensation collected for the car benefit is taxable wages of the employee. If the deductible is equal to the taxable value of the car benefit, no taxable benefit is established. Even then, the collected compensation must be reported. The amount of the benefit must also be reported using the ‘Car benefit’ income type.

The amount of the car benefit is reported in full using the ‘Car benefit’ income type, and the deductible collected from the employee is reported using the ‘Compensation collected for car benefit’ income type.

The car benefit must be reported even if the payer has collected from the income earner compensation for the fringe benefit equal to or exceeding the monetary value of the fringe benefit, with no remaining amount to be added to the wages.

The employer may collect the deductible of the car benefit from the net wages of the employee.

402 Withholding tax A prepayment whereby the payer deducts the tax calculated according to the withholding tax rate from the monetary amount paid to a taxpayer.

The withholding tax can be reported as a total amount in the report, even if several income types were reported.

403 Elected official fee A fee that can be collected from the meeting fees of elected municipal officials to be paid to political parties.

The elected official fee may only be reported by municipalities and joint municipal authorities. A municipality or joint municipal authority reports an elected official fee collected from the fees paid to a person elected for a municipal position of trust. The remuneration paid to the person in a position of trust is reported using the Meeting fee, Compensation for acting in position of trust or Total wages income types, depending on the grounds of the payment.

If the income earner acting in a position of trust has paid the elected official fee directly to a political party, the fee is not reported to the Incomes Register. The political party reports the fee to the Tax Administration on its annual return.

The fee is not reported if it has been collected for a position other than a municipal position of trust, such as a membership of a board of directors of a limited liability company or another civil law corporation.

404 Tax at source The final tax collected from a payment made to a non-resident taxpayer that the payer is obligated to collect from the income in connection with its payment.

This itemisation type is used to report only tax at source collected and paid to Finland.

The tax at source can be reported as a total amount in the report, even if several income types were reported.

The tax at source does not include the employee's health insurance contribution; if necessary, this is collected separately. In such a case, the employee's health insurance contribution is reported using the separate ‘Employee's health insurance contribution’ income type.

If no tax at source is collected from a royalty paid to a non-resident taxpayer, the payer must enter the amount of tax at source as EUR 0. Do not leave the field empty in such a case. 
405 Tax at source deduction A deduction made from the total amount of monetary wages and fringe benefits before tax at source is collected.When tax at source is collected, a deduction of EUR 510 per month is made from the total amount of income for which a 35% tax at source is collected. When the income has been accrued during a period of less than a month, EUR 17 per day is deducted from the total amount. However, the deduction may not be larger than the amount of income. Receiving the deduction requires that the taxpayer presents the payer with a tax at source card with an entry for the deduction.
406 Wages paid Cash wages paid to the employee after withholding tax, the employer's social insurance contributions and other deductible items have been deducted.

The other deductible items may include reimbursement collected from the employee for fringe benefits, unemployment fund and trade union membership fees collected by the employer, and enforcement payments.

Expense items that are the employer's responsibility, such as hotel payments on business travel, ticket expenses or any occupational health care payments, are not reported using the Wages paid income type.

407 Reimbursement collected for other fringe benefits The share of the value of a fringe benefit paid by the employee.

In this section, report the amount collected from the employee for fringe benefits other than a car benefit or employer-subsidised commuter ticket benefit.

The amount of the fringe benefit is reported in full using the appropriate income type, and the deductible collected from the employee is reported using the ‘Reimbursement collected for other fringe benefits’ income type.

Even if the employer has collected or the employee otherwise has paid a reimbursement for a fringe benefit to the employer equalling the monetary value of the fringe benefit, the fringe benefit and the reimbursement collected must be separately reported to the Incomes Register in full. The reimbursement collected for a fringe benefit reduces the amount of taxable income and the amount of earnings from work on which the social insurance contributions are based.  

Example: An employee has been granted permission to charge her electric vehicle during the workday in the employer's parking garage on the employer's expense. The employee incurs a EUR 30 monthly benefit. The employer collects an amount from the employee's net wages equalling the taxable value of the benefit, EUR 30. The payer reports the following to the Incomes Register:

  • 317 Other fringe benefit 30.00
    • Type of benefit: Other benefit
  • 407 Reimbursement collected for other fringe benefits 30.00

If the reimbursement collected for a meal benefit equals the taxable value, the collected reimbursement is not reported using the itemisation type Reimbursement collected for other fringe benefits. In such a case, only the Reimbursement for meal benefit corresponds to the taxable value – Yes (true) entry is made.

The employer may collect the reimbursement for fringe benefits from the net wages of the employee.

If a fringe benefit reported using income type Other fringe benefit is not subject to social insurance contributions, and the payer has reported this using the Type of insurance information data group, the corresponding Type of insurance information data must also be added to the Reimbursement collected for other fringe benefits income type to the extent the collected reimbursement targets the part not subject to social insurance contributions. Although the default assumption for this income type is that it is not subject to social insurance contributions, the payer must confirm the data on the report in the manner described above. 

Example: A person has a EUR 750 accommodation benefit from which the employer has collected a reimbursement of EUR 150. Additionally, the employer grants a EUR 180 benefit that is not subject to earnings-related pension, unemployment or accident and occupational disease insurance contributions. However, the income type is subject to a health insurance contribution. The payer has collected a EUR 30 reimbursement for this benefit.

The payer reports the information as follows:

  • 317: 750.00 (the benefit can also be reported using income type 301)
  • 317: 180.00
    • Type of insurance information: Subject to earnings-related pension insurance contribution: No
    • Type of insurance information: Subject to unemployment insurance contribution: No
    • Type of insurance information: Subject to accident insurance and occupational disease insurance contribution: No
  • 407: 150.00
  • 407: 30.00
    • Type of insurance information: Subject to earnings-related pension insurance contribution: No
    • Type of insurance information: Subject to unemployment insurance contribution: No
    • Type of insurance information: Subject to accident and occupational disease insurance contribution: No

See the customer instructions for Reporting data to the Incomes Register: fringe benefits and reimbursements of expenses and Reporting data to the Incomes Register: insurance-related data.

408 Other item deductible from net wage or salary Items the payer deducts from the net wage or salary before paying it to the income earner.

Items may be deducted from the net wage by law or agreement. Deductions made by law include debt recovery payments. The employer may set off its own receivables from the employee's wages. Fees may be deducted from the employee's net wages, if the employer and employee have agreed on their collection. Items deductible from a net wage include unemployment fund and trade union membership fees, and parking garage fees.

If the debt recovery payment has already been separately reported, it is not included in the total amount of this itemisation type.

409 Net wage or salary Wages from which tax has been withheld and the employee's social insurance contributions have been paid.

The net wage is different to the wage paid to the employee.

410 Employer-paid premium for collective additional pension insurance The employer's share of the additional pension insurance premium paid to cover a collective additional pension.

The premium is reported only if the employee pays part of the premiums. If the employer pays the collective additional pension insurance premiums in full, this information is not reported on the earnings payment report.

Only the premiums of collective additional pension insurance policies taken out on 6 May 2004 or later are reported here. If the employee has been insured prior to 6 May 2004, the premiums collected are reported only in the Employee's earnings-related pension insurance contribution section.

The contributions are also reported in that section when a new employee has joined a collective insurance policy after 6 May 2004, but the employer has taken the policy out prior to that date.

411 Employer-paid premium for collective additional pension insurance, employee's contribution The employee's share of the additional pension insurance premium paid to cover a collective additional pension.

The premium is reported only if the employee pays part of the premiums. If the employer pays the collective additional pension insurance premiums in full, this data is not reported on the earnings payment report.

Only the premiums of collective additional pension insurance policies taken out on 6 May 2004 or later are reported here. If the employee has been insured prior to 6 May 2004, the premiums collected are reported only in the Employee's earnings-related pension insurance contributions section.

The contributions are also reported in that section when a new employee has joined a collective insurance policy after 6 May 2004, but the employer has taken the policy out prior to that date.

412 Employee's health insurance contribution A share of the health insurance premium via which the employee participates in financing earned income insurance.

In the case of resident taxpayers, the health insurance contribution is always included in withholding tax, and the employee's health insurance contribution should not be separately reported for resident taxpayers.

The health insurance contribution of a non-resident taxpayer must be collected separately in addition to tax at source, unless the non-resident taxpayer wants to be taxed in accordance with the Tax Procedure Act, in which case the health insurance contribution is included in the withholding tax or prepayment of tax.

The employee's health insurance contribution includes the daily allowance contribution of health insurance and the health care contribution of health insurance. The amounts of the contributions are confirmed annually by Government decree. 
413 Employee's earnings related pension insurance contribution Earnings-related pension insurance contribution determined based on the gross wage, through which the employee participates in the financing of the earnings-related pension.

The employee's earnings-related pension insurance contribution is deducted from the employee's net wages.

414 Employee's unemployment insurance contribution An unemployment insurance contribution determined based on the gross wage, through which the employee participates in the financing of the unemployment insurance.

The employee's unemployment insurance contribution is deducted from the employee's net wages.

415 Reimbursement for employer-subsidised commuter ticket The deductible of a fringe benefit paid by the employee from the euro value of an employer-subsidised commuter ticket.

Part of the value of the employer-subsidised commuter ticket is tax-exempt and part is taxable. The taxable share of the employer-subsidised commuter ticket is a fringe benefit. A personal public transport ticket with a value of no more than EUR 300, provided by the employer to the employee for commuting between the employee's residence and place of work, is tax-exempt income. Furthermore, such a ticket is considered tax-exempt income for the amount exceeding EUR 750, up to EUR 3,400. A report must always be submitted for an employer-subsidised commuter ticket, including when there is no taxable benefit.

If the income earner buys the ticket themselves, and the employer pays the price of the ticket or part of it to the employee, the entirety of the compensation paid by the employer is considered to be the employee's wages. In such a case, the price of the ticket paid to the employee is reported as wages only.

The employer may collect the deductible of the employer-subsidised commuter ticket from the net wages of the employee.

Example: The employer has provided an employee with an employer-subsidised commuter ticket with a value of EUR 1,000. The employer collects EUR 200 from the employee's net wages. The amount of the taxable fringe benefit and wages is EUR 250. The employee receives EUR 550 of tax-exempt benefit.

  • The taxable amount considered as wages, EUR 250, is reported using the Employer-subsidised commuter ticket, taxable share income type.
  • The amount collected from the employee, EUR 200, is reported using the Reimbursement for employer-subsidised commuter ticket income type.
  • The amount of tax-exempt benefit, EUR 550, is reported using the Employer-subsidised commuter ticket, tax exempt share income type.

Example: The employer has provided an employee with an employer-subsidised commuter ticket with a value of EUR 1,000. The employer collects EUR 500 from the employee's net wages. The amount of taxable fringe benefit is EUR 450. Because the collected reimbursement is larger than the taxable value of the benefit, no taxable fringe benefit is established. The employee receives EUR 500 of tax-exempt benefit.

  • The amount collected from the employee, EUR 500, is reported using the Reimbursement for employer-subsidised commuter ticket itemisation type.
  • EUR 500 is reported using the Employer-subsidised commuter ticket, tax exempt share income type.

In the case of employer-subsidised commuter tickets, the amounts of taxable and tax-exempt benefit are estimated on an annual level unlike other fringe benefits, which are valuated on a monthly level. If an employer-subsidised commuter ticket is granted once per year, for example at the start of the year, and a reimbursement is collected regularly throughout the entire year, the person would, in practice, incur a taxable benefit at the start of the year, as the payer has not yet had time to collect more than the first month's reimbursement for the benefit. So that the payer does not need to correct submitted reports in a situation described above, the payer can anticipate the situation in advance and divide the tax-exempt share over the entire year, reporting it monthly to the Incomes Register together with the collected reimbursement.

Example: The employer gives an employer-subsidised commuter ticket worth EUR 1,800 at the beginning of the year. The employer collects EUR 100 per month for the ticket, in total EUR 1,200 per year). In practice, no share deemed to be wages would remain at the end of the year, but at the start of the year there would be, because the employer has not had time to collect the reimbursements from the employee.

So that the payer does not need to correct the submitted reports as the collected amount increases, the payer can anticipate the situation in advance and divide the tax-exempt share over the entire year, reporting it monthly to the Incomes Register together with the collected reimbursement as follows:

  • 341 (tax-exempt share): 50.00
  • 415 (collected reimbursement): 100.00
416 Tax paid abroad Tax, for example withholding tax, withheld by the employer from the employees wages and paid to the country of work. The withheld tax must be as close to the final tax as possible.

Most commonly, this involves a situation where a Finnish employer has a permanent establishment abroad and is subject to employer obligations there. This information is significant because, as the country of residence, Finland is obligated to eliminate double taxation.

This itemisation type is not used to report any taxes paid abroad by the employee; the employee reports them in their own taxation.

417 Distraint An amount withheld in order to make a debt recovery payment. The garnished amount is calculated from net income.

However, a protected share must be left during garnishment for the livelihood of the debtor and their family.

418 Voluntary individual pension insurance premium Premium of a pension insurance taken out for a specific person to complement statutory pension provision. The voluntary individual pension insurance premium may be continuous or a one-off payment.

Enter the premiums of the voluntary individual pension insurance taken for the employee here. Similarly, also report the premiums of an individual pension insurance taken out for a partner in a general partnership, a general partner in a limited partnership, or a shareholder in a limited liability company that does not have an earnings-related pension insurance.

If the premiums of voluntary individual pension insurance taken out by the employer exceed EUR 8,500, they are taxable income from which the employer's social insurance contributions are also paid. If the premiums exceed EUR 8,500 per year, the payer reports the extraneous premiums as other fringe benefits.

Example: The employer pays EUR 12,000 per year in premiums for voluntary individual pension insurance it has taken out for an employee. The employee reports the information as follows:

  • Voluntary individual pension insurance premium EUR 8,500.
  • Other taxable fringe benefits EUR 3,500.

Enter only the premiums of the voluntary individual pension insurance here. If, on the employee's behalf, the employer has paid the employee's mandatory pension insurance contributions, unemployment insurance contributions and the premiums of voluntary pension insurance taken out by the employee, these are reported using the ‘Other fringe benefits’ income type.

419 Deduction before withholding A direct expense incurred when performing work, which is paid by the employee and deducted from gross wages by the employer before determining the withholding tax. Such expenses include expenses paid by the income earner that are incurred from the use of a chainsaw, and other expenses arising from tools. Similarly, business travel expenses are such expenses, if the employer does not pay tax-exempt allowance for them in addition to wages.

The maximum amount of deduction that can be reported is the amount of the payment.

Enter the deduction made before withholding tax in this section. The share of the deductions must also be included in the wages reported using an income type.

Example: The employee has paid EUR 4,500 in expenses incurred from the use of a chainsaw. The annual wages paid to the employee are EUR 20,000, of which the share of work performed with a chainsaw is EUR 14,000. The employee has requested the deduction of operating expenses according to the 40% rule, before the collection of tax to be prepaid from the wages paid for work performed with a chainsaw, i.e., EUR 5,600. The tax to be prepaid has been collected from EUR 14,400 (20,000-5,600) in accordance with section 15 of the tax prepayment act (ennakkoperintälaki 1118/1996).

EUR 20,000 is reported using the Wages income type, and EUR 5,600 is reported using the itemisation type Deduction before withholding. The employee must request a chainsaw deduction on their pre-completed tax return form, and provide an account of the amount of wages paid for work performed with a chainsaw. In final taxation, the deduction is calculated from the share of the wages paid for work performed with a chainsaw (EUR 14,000).

If the employer has paid the expenses incurred by the use of a chainsaw, see the instructions for reporting this in the section: Taxable reimbursement of expenses.

Example: A folk musician is promised EUR 200 for a gig. Travel and travel expenses do not affect the gross amount paid. The travel expenses are thus not reimbursed.

The employer can calculate the amount from which to withhold tax by deducting the same amount as the tax-exempt reimbursable amount, based on an account given by the employee. For example, amounts corresponding to travel expenses of 51 km x 43 cents per kilometre, or 21.93 cents, and a partial daily allowance of EUR 19, leaving EUR 159.07 as the amount subject to withholding.  The employer's health insurance contribution is also paid from the same amount.

EUR 200 is reported using the Wages income type, and EUR 40.93 is reported using the itemisation type Deduction before withholding. No entries are made using the income types of tax-exempt reimbursements of travel expenses.

The employee must request the deductions in their tax return, and the deduction is usually lower than in connection with withholding.

In certain situations laid down in the law, the payer can also deduct such costs from the athlete's fee before withholding that were paid by the athlete himself or herself and that were directly incurred from sports. Such a deduction made by the payer is reported using the income type Deduction before withholding. The share of the deductions must also be included in the fee reported using the Non-wage compensation for work income type. The maximum amount of deduction that can be reported is the amount of the payment even if the expenses incurred by the athlete are greater than the fee.

If the payer makes the deduction from income that is not subject to social insurance contributions, the payer must submit the Type of insurance information entry for the Deduction before withholding income type. The default for the Deduction before withholding income type is that it is not subject to social insurance contributions. Regardless of this, the payer must provide the Type of insurance information entry (Subject to social insurance contributions: No) if the deduction is made from income that is not subject to social insurance contributions.

Example: A third-party lecturer is paid a lecture fee of EUR 1,000. The lecture fee is not subject to social insurance contributions. The lecturer has incurred EUR 150 in travel expenses. The payer does not separately reimburse the expenses; instead, the payer deducts the amount of the expenses before withholding taxes. The person's withholding rate is 30%. The payer withholds taxes from EUR 850 and reports the data to the Incomes Register as follows:

  • 214 Lecture fee: 1000.00
  • 402 Withholding tax: 255.00
  • 419 Deduction before withholding: 150.00
    • Type of insurance information: Subject to social insurance contributions – Grounds for insurance contribution: No

If a single transaction includes the payment of wages subject to social insurance contributions and such wages in accordance with section 13 of the tax prepayment act (ennakkoperintälaki 1118/1996) on which social insurance contributions are not based, and expenses which are deducted before withholding are allocated to either income, the payer must specify the Type of insurance information. This allows the deduction to be allocated to the correct income type.

If, in a single transaction, the payer deducts expenses from income subject to social insurance contributions and income from which no social insurance contributions are paid, the payer must report the deductions separately. Type of insurance information (Subject to social insurance contributions: No) must be specified for the deduction made from income from which no social insurance contributions are paid.

Example: A person is paid EUR 2,900 in monthly wages and EUR 300 in waiting time compensation. The waiting time compensation is not subject to social insurance contributions. The person's withholding rate is 20%. The person has EUR 45 in expenses allocated to the waiting time compensation and EUR 100 in expenses allocated to the time-rate pay. The employer deducts both parts from the person's income prior to withholding taxes. The payer reports the data to the Incomes Register as follows:

  • 201 Time-rate pay: 2900.00
  • 217 Waiting time compensation: 300.00
  • 402 Withholding tax: 611.00
  • 419 Deduction before withholding: 100.00
  • 419 Deduction before withholding: 45.00
    • Type of insurance information: Subject to social insurance contributions – Grounds for insurance contribution: No

If the deduction before withholding is made from income subject to all social insurance contributions, the payer does not need to specify the Type of insurance information unless the payer also pays some other income not subject to social insurance contributions in the same transaction. 

Example: A person is paid EUR 3,500 as monthly wages. Her withholding rate is 25%. In her work, she uses her own tools for which the employer does not pay a separate compensation. The payer deducts EUR 30 for the use of the employee's own tools before withholding and withholds taxes from EUR 3,470. Because the monthly wages paid are subject to all social insurance contributions, the payer does not need to specify the Type of insurance information.

The payer reports the data to the Incomes Register as follows:

  • 201 Time-rate pay: 3500.00
  • 402 Withholding tax: 867.50
  • 419 Deduction before withholding: 30.00