In certain cases, authorities, labour unions, etc. require a pay slip from the persons. The employer has the obligation to supply a pay slip upon the request of the employee.
In pay slips, the salary earning date is used, as instructed by the Social Insurance Institution of Finland (Kela) and the unemployment funds. This is different to other salary reports and notifications, where the payment date determines the time period that the salary belongs to. If a salary has been earned for example in December, but it is paid in January, it causes a difference between the figures of the pay slip and those of the annual notification.
The Social Insurance Institution of Finland (Kela) wants different certificates in different situations, such as the Y17 “notification of salary paid by the employer”, where information is to be presented by the payment date.
Creating a pay slip
To print out the person’s pay slip, first select the format (HTML or PDF). Then select whether to use scoping by date or include the last period as well as the current and previous year. Then select the Person Group and Person. If the person does not belong to any group, select option (No group). The selection Person group means the groups that the person belongs to, not his/her Reporting group. By default, inactive persons can also be selected. If you do not want to include inactive persons in the Person view, remove the tick from the Inactive box.
If you used scoping by date, select the start and end dates. If you used period selection, no dates are needed. You can enter 255 characters text in the Additional information field, if needed. Enter the author’s signature and phone number.
Click the Show salary certificate button when you have entered the information.
The Back button returns you to the Salary reports view.
The pay slip includes salaries with the status Paid or Paid elsewhere and the salary period’s start date of which (i.e. the earning date) is within the selected time period.
The pay slip is to be signed by the employer of a person authorised by the employer. This has been interpreted so that the person who creates the pay slip is a person authorised by the employer. Therefore, the name and phone number are automatically retrieved from the user’s Personal info and settings as defaults to Salaries/salary reports/pay slip.
When you are showing the pay slip in the display, you can print it on paper and sign it.
Pay slip, selection “Last period, as well as the current and previous year”
Pay slip, selection “Scoping by date”
Calculation of the amounts
Salary subject to withholding contains all salaries, fees, partial fees, compensations and fringe benefits.
Holiday pay and holiday compensation are also included in the Salary subject to withholding.
The pay slip’s row Shift or seasonal differential contains the following salary types:
- Work on a day before a holiday 50%
- Evening work compensation, day before a holiday
- Evening work compensation
- Evening work compensation 15%
- Holiday and religious holiday compensation 50%
- Saturday work compensation
- Saturday work compensation 10%
- Saturday work compensation 20%
- Saturday work compensation 25%
- Saturday work compensation 60%
- Working condition compensation
- Sick leave allowance
- Sunday night work allowance
- Sunday evening work allowance
- Sunday work allowance 30%
- Sunday work compensation
- Sunday work compensation (no automatic calculation)
- Sunday night shift allowance
- Annual leave bonus
- Night work allowance
- Night work allowance 30%
- Night work allowance 40%
- Night work allowance 45%
Overtime compensation is not included in Shift or seasonal differential. Shift or seasonal differential is also included in Salary subject to withholding.
The pay slip’s row Holiday pay contains the following salary types from the salary slips:
- Holiday pay
- Holiday pay, hourly wages
- Holiday bonus, standard divider 25
The pay slip’s row Holiday compensation contains the following salary types:
- Holiday compensation at the end of employment (No Employees’ Pension Act)
- Holiday compensation at the end of employment, monthly salary (No Employees’ Pension Act)
- Holiday compensation at the end of employment, hourly wage (No Employees’ Pension Act)
- Holiday compensation at the end of employment
- Holiday compensation at the end of employment, monthly salary
- Holiday compensation at the end of employment, hourly wage
- Holiday compensation for short-term employment (excl. fringe benefits)
- Holiday compensation for a short-term employment (incl. fringe benefits)
In accordance with the financing renewal of the Social Insurance Institution of Finland (Kela) as of 1 January 2006, the employee’s tax percentage includes an earned-income contribution, which is withheld from employees and self-employed persons (2012: 0.82% / 0.97%, 2011: 0.82 % / 0.92 %, 2010: 0.93 % / 1.05 %, 2009: 0.70 % / 0.79 %, 2008: 0.67% / 0.81%, 2007: 0.75% / 0.91%, 2006: 0.77% / 1.02%).
According to the law and the Tax Administration’s instructions, the earned-income contribution’s share of the tax withholding must be shown as a separate item in the salary slip and salary certificate. Thus no additional payment is withheld, but the payment is included in the tax withholding. (Health Insurance Act - PART VI - FINANCING OF HEALTH INSURANCE - Chapter 18 - section 30 - Employer’s obligation to inform - The employer has to notify the employee of the amount of healthcare contribution in the tax withheld upon the payment of salary.)
This change to salary slips and certificates was updated to the system on 2 January 2006. Thus, the earned-income contribution has been shown in the salaries calculated since 2006. It is shown in the printable version of the salary slip and certificate, i.e. the salary slips and certificates sent to employees. In the system it can be seen by using the Preview button.