PREPARE FOR THE INCOMES REGISTER
This is how earnings reporting will change as of 1 January 2019.
WHAT IS THE INCOMES REGISTER?
- 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 the 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.
Report wages and salaries to THE INCOMES REGISTER
Submit the last monthly notification for 2018 or the annual notification for the full year to Ilmarinen.
- Read more about reporting earnings paid in 2018 ›
All wages and salaries paid in 2019 shall be reported to the Incomes Register. Submit the report within five days of payment after each payment.
HOW TO TRANSFER TO THE INCOMES REGISTER
- Make sure that your payroll system is compatible with the Incomes Register. Find out what kind of connection you need to build to the Incomes Register.
- The easiest way to report your payroll data is through the Incomes Register’s interface. Obtain the required certificate from incomesregister.fi.
- You can also report your payroll data to the Incomes Register through the e-service at incomesregister.fi. Take care of the authorisations required for the service well before the payment of wages or salaries.
- Obtain the required certificate from incomesregister.fi ›
- Obtain the authorisations required for the service ›
- You can submit your payroll data to the Incomes Register through the e-service at incomesregister.fi. Take care of the authorisations required for the service well before the first payment of wages or salaries.
- The introduction of the Incomes Register offers a good opportunity to take a look at the available payroll management and reporting options.
- In the Palkka.fi service (in Finnish) you can pay salaries and wages and their employer costs. The free service submits the payroll data to the Incomes Register.
- The SuoraTyo.fi service (in Finnish) submits the payroll data to the Incomes Register and takes care of all employer obligations. The service charges a small handling fee.
- Discuss with your accounting firm what approaches you should take with the adoption of the Incomes Register.
- Grant the necessary authorisations to the accounting firm well before the payment of wages or salaries.
- Companies grant authorisations through the Suomi.fi service, while those who are not entered in the Register of Employers take care of them through the Katso service.
Paying earnings-related pension contributions
You will receive an invoice for the earnings-related pension contributions on salaries and wages that you pay in a calendar month. We will send the invoice after you have reported all the information concerning the calendar month in question to the Incomes Register. The invoice falls due on the last day of the month following the payment month. If you wish, you can move the due date forward by one month on Ilmarinen’s online service. In that case, insurance contribution interest will be charged on the contribution.
In the example, the company pays wages and salaries on 15 and 30 April. The company must report the paid wages and salaries to the Incomes Register within five days of payment. You have two invoicing options:
Option 1
The company pays the earnings-related pension contributions by the end of the month following the payment month, i.e. by the end of May in our example. Ilmarinen sends the company a normal TyEL invoice for wages and salaries paid in April.
Option 2
The company changes the invoice’s due date on the online service. The due date can be moved forward by a maximum of one month and the change must be made during the month in which the wages or salaries are paid. When the due date has been moved forward by one month, in this case to the end of June, insurance contribution interest will be charged on the contribution.
What does an entrepreneur need to know about the Incomes Register?
- Earnings-related pension contributions will still be paid to Ilmarinen.
- Changes to YEL income will be made through Ilmarinen’s online service also in future; they are not reported to the Incomes Register.
Report to the Incomes Register
- The wages and salaries, fringe benefits, daily allowances and other reimbursements paid by your company to you. This applies to, for example, entrepreneurs that are owners in a limited liability company.
- Compensation subject to withholding tax paid to you or your company as non-wage compensation for work. This applies to compensation for your work when you are not included in the Prepayment Register taxation-wise.
- All wages, salaries and benefits that you have paid to your employees. There is no minimum or maximum threshold for the amounts paid or the duration of the employment relationship.
HOW WILL COMPANIES BENEFIT FROM THE INCOMES REGISTER?
The Incomes Register simplifies payroll management
The Incomes Register will simplify companies’ payroll management, as payroll will be reported to only one place.
The Incomes Register replaces separate annual notifications
Separate annual notifications to different parties and authorities will no longer be made.
TyEL contributions based on actual payroll
Payroll data is reported within five days of payment. As a result, companies’ TyEL contributions will always be based on the actual payroll.