This is how earnings reporting will change as of 1 January 2019.
- The Incomes Register is a national electronic database which includes all the information relating to salaries and wages, pensions and benefits of individual citizens.
- All payroll notifications concerning wages and salaries paid after 1 January 2019 shall be made in real time and per payment to the Incomes Register.
- The Incomes Register applies to anyone who pays wages or salaries: companies, associations, households and substitute payers. Wages paid by an entrepreneur to themselves shall also be reported to the Incomes Register.
- The Incomes Register will replace payroll notifications made to Ilmarinen, the Tax Administration, Kela and the Unemployment Insurance Fund. Ilmarinen will receive all the information it needs to calculate insurance contributions and pensions directly from the Incomes Register.
1. The Incomes Register necessitates changes in companies’ payroll systems. You should check from your payroll system supplier that the required changes will be made during 2018.
2. You should also look into how the transfer to reporting earnings in real time changes your company’s payroll management processes.
3. Make sure that the authorised signatory information in, for example, the trade register extract is up to date for authorisations.
4. You can grant authorisations for the use of the Incomes Register as of 8 August. You may authorise, for example, another person or an accounting firm to use the Incomes Register on your behalf. The Incomes Register’s chat service provides help with questions on authorisations and other questions on the Incomes Register.
5. We recommend adopting e-invoicing before switching to the Incomes Register. Read more about e-invoicing
• All earnings paid after 1 January 2019 shall be reported to the Incomes Register. Any changes to the notifications shall also be made through the Incomes Register.
• Earnings payment data can be sent directly from the payroll system or via the Incomes Register’s user interface as a file or using an online form.
• Earnings data shall be reported to the Incomes Register primarily within five days from the payment. There are no euro-limits for reporting – all earnings are reported.
• The payer shall, if necessary, submit an employer’s separate report no later than on the fifth day of the calendar month following the payment month concerning information that does not pertain to individual earners. Read more about the employer’s separate report
• Notifications for earnings paid before 1 January 2019 and any changes to these will still be submitted to Ilmarinen.
• Annual notifiers will submit their last annual notification for 2018 to Ilmarinen by 31 January 2019. Monthly notifiers will submit a notification of salaries and wages paid in December 2018 to Ilmarinen by 20 January 2019.
The Incomes Register will simplify companies’ payroll management, as payroll will be reported to only one place. Reporting will be more straightforward in this respect.
Separate annual notifications to different parties and authorities will no longer be necessary, which will reduce the volume of work for financial administration at the beginning of the year. This will benefit employers in particular.
Earnings will be reported shortly after they are paid. As a result, companies’ TyEL contributions will always be based on the actual payroll instead of an estimate, like earlier.