Prepayment of taxes, health insurance and unemployment insurance contributions
Deduct a prepayment of taxes from all the salaries paid by your company. Also pay the employer’s health insurance and unemployment insurance contributions with these.
A prepayment of taxes refers to the estimated amount of taxes that the employee will have to pay from their salary.
The sum of the prepayment will be calculated according to the prepayment percentage on the employee’s tax card. Deduct the sum for the prepayment from the employee’s gross salary and pay it to the Finnish Tax Administration.
If your employee does not present a tax card a 60& prepayment will automatically be deducted from their salary.
You can use the Palkka.fi service to calculate the salaries and salary-related costs and to submit the statutory notifications to the Incomes Register.
The employer’s health insurance contribution is a social insurance contribution that covers health insurance costs, such as sickness allowances, rehabilitation allowances, maternity, paternity and parental allowances as well as compensations paid as part of the occupational health system.
The amount for the employer's health insurance contribution is is determined by the total amount for salaries paid by your company. The size of the contribution varies slightly from year to year. The percentage paid is the same for all companies.
Report the total amount of the employer's health insurance contribution and the deductions made from it to the Incomes Register.
Your business must pay unemployment insurance contributions, if you pay your employees wages and salaries amounting to more than EUR 1,300 in total in a calendar year. The amount of your unemployment insurance contributions is determined based on the wages and salaries you pay. The payment percentages are adopted by Parliament each year.
The Employment Fund will receive information on any wages and salaries paid from the Incomes Register. You must report this information to the Incomes Register every time you pay wages and salaries.
The employee and the employer both have a liability to pay their share of the unemployment insurance contribution. Deduct your employees’ unemployment insurance contributions from their wages and salaries and remit the full payment to the Employment Fund as stated in the invoices you receive from the Fund. You can check your details and send messages to the Employment Fund at their service for unemployment insurance contributions.
The unemployment insurance contributions you pay are used to fund unemployment benefits, adult education allowances, pensions and pay security.