To get the best help for your situation, first answer the questions on the Preliminary questions page.
Recruiting an employee
- Preliminary questions
- Plan the recruitment
- Find a suitable employee
- Prepare for the arrival of an employee
- Plan the induction
- Take care of practical matters
- Take care of the following during the employment relationship
- Notifications to the Incomes Register
- Should unpaid trainees' benefits and compensation be reported to the Incomes Register?
- When must a foreign company submit an earnings payment notification?
- Payments in MyTax
- Payment of social insurance contributions
- Retention of foreign employee data
- Occupational safety and health
- Shared responsibility on occupational safety and health in temporary agency work
- Remember good management practices
- Recruitment checklist
Take care of the following during the employment relationship
Notifications to the Incomes Register
The employer must notify the Incomes Register after each payment transaction:
- information on wages and salaries paid in the pay information report
- the employer's health insurance contributions by means of a separate employer notification
The information you report is transferred from the Incomes Register to different parties, such as the Tax Administration, pension companies and the Employment Fund.
Should unpaid trainees' benefits and compensation be reported to the Incomes Register?
The traineeship post must report the fair value of the taxable benefits to the Incomes Register.
Reimbursement of travel expenses should normally be reported even if they are tax-exempt.
When must a foreign company submit an earnings payment notification?
Even if the company does not have a permanent establishment in Finland, it must submit an earnings payment notification to the Incomes Register if the company pays a salary or wages to an the employee, who:
- works in Finland and is either insured in Finland or resides in Finland for more than 6 months
- works abroad but is insured in Finland.
Payments in MyTax
The employer must pay withholding tax and tax at source on employees' salaries and the employer's health insurance contributions in MyTax.
For detailed instructions, see the Tax Administration's page How to pay taxes in MyTax and check the details you need for making paymentsOpens in a new window..
Payment of social insurance contributions
Social insurance contributions are statutory, so they must be paid on time.
Your company will receive an invoice for the following insurance premiums:
- Employment pension company: The employee's earnings-related pension contribution is based on the earnings data you have reported to the Incomes Register.
- Employment Fund: The unemployment insurance contribution is based on earnings data you have reported to the Incomes Register.
- Insurance company: Remember to take out accident insurance. The basis for the insurance premiums is specific to the insurance company, and the premium is based on the pay and occupational category data reported to the Incomes Register. Any group life insurance premiums are charged on the same invoice.
If the employee has other employers abroad and has an A1 certificate issued abroad, arrange the statutory social insurance policies in the country that issued the A1 certificate.
When paying, follow the instructions of the sender of the invoice, as neglecting the payment obligation might result in a large penalty fee.
Retention of foreign employee data
The employer must keep records of past and current foreign employees at the workplace and the grounds for their right to work for two years after the termination of the employment relationship. The information must also be easy to verify. You can record the data on the “Luettelo ulkomaalaisista työntekijöistä ja heidän työnteko-oikeutensa perusteista” (List of foreign workers and the grounds for their right to work)Opens in a new window. form available in Finnish on the Occupational Safety and Health Administration's website.
The elected officials at the workplace must be informed of the name of the foreigner and the applicable collective agreement.
Compliance with the obligations is supervised by the occupational safety and health authorities and the police. Neglecting the obligations might result in sanctions.
Occupational safety and health
The employer has an extensive duty of care. This means that the employer must take the necessary measures to ensure the safety and health of employees at work.
Occupational safety and health is an activity between the employer and employees that maintains:
- workplace safety and health
- the employees' ability to work.
Ensuring occupational safety must be systematic and based on proven good practices. Failure to do so may also result in criminal liability.
More information: