In Procountor, the tax card type is selected in the Salary info view's Tax information window.
The person’s tax card type is selected in the person’s Salary info. Regarding Tax card A, you can select one of the following two methods for calculation of withholding: per salary period (Tax withholding decree section 4) or cumulative calculation (Tax withholding decree section 5). Note! In case of a revised tax card with a cumulative limit without any more salary-period limits, select Tax card B and tick the Revised tax card box and enter the tax card date (e.g. the current date) for starting the calculation.
If you have used an erroneous tax card type and paid excessive withholding tax, please read the instructions here for correcting the withholding tax.
Tax card A
In Tax card A calculation, the system calculates the monthly, weekly and daily income limits according to the salary period on the basis of the annual income limit. For Tax card A, you must enter the Base percent, Additional percent, and the annual Income limit. If alternative A (tax withholding on the basis of the salary-period’s income limit) has been selected in the employee’s tax card, select Tax card A as the Tax card type, if tax withholding is carried out according to the Tax Administration’s instruction “Calculation per salary period (Tax withholding decree section 4)”.
In Tax card A calculation, tax is always withheld from salary types “Holiday pay”, “Holiday pay, hourly wages”, and “Holiday pay, standard divider 25” according to the Base percent, as specified in the Tax Administration’s instruction “3.4.5. Tax withholding from holiday pay, In salary period-based calculation, tax is always withheld from holiday pay according to the base percentage”.
Tax card A - Cumulative
In Tax card A - Cumulative calculation, the calculation of tax withholding is based on the tax days used during the calendar year. Cumulative calculation also considers previously paid salaries and withholdings from them. In the Tax card information you must enter the Basic percent, additional percent and Annual income limit. If alternative A (tax withholding on the basis of the salary-period’s income limit) has been selected in the employee’s tax card, select Tax card A - Cumulative as the Tax card type, if tax withholding is carried out according to the Tax Administration’s instruction “Cumulative calculation (Tax withholding decree section 5)”. If several pay slips are paid to the person during the same salary period, this must be observed in the amount of tax days when creating the salary list. Read more in New salary list.
When using cumulative calculation, the employer cannot consider salaries paid by other employers, i.e. the information in field “Income from other salaries” cannot be used in calculation of withholding. During the calendar year, you can change from cumulative calculation (Tax card A - Cumulative) to another tax card type, such as calculation per salary period (Tax card A), and from another tax card type to cumulative calculation (for example, from salary period based tax card A or from tax card B). If you change from another tax card type to Tax card A - Cumulative in the middle of the year, the tax days of previous months must be marked on the next salary slip. For example, if a person has received salary based on Tax card B in January and February and they start to use a cumulative Tax card A in March, the tax days from the early part of the year will be marked on the salary slip in March in order to balance the calculation, that is the number of tax days is 90.
Tax card B
In Tax card B the system compares the accumulated income and the Income limit 1.2. - 31.12. When the accumulated income exceeds the income limit, the system starts calculating tax withholding according to the Additional percentage. For Tax card B, you have to enter the Base percent, Additional percent and Income limit 1.2. - 31.12. If alternative B (tax withholding according to one income limit) has been selected in the employee’s tax card, select Tax card B as the Tax card type.
If the employee has received salary to the same tax card B earlier from another employer, the person carrying out the salary calculation has to enter the sum from the employee’s tax card’s line “Employer’s markings on paid salaries” in the Edit person’s salary info view, in field Income from other salaries. Salary for the validity of the tax card has been specified on Tax card B, that is if the tax card has entered into force on 1 February 2014, "Income from other salaries" must be reported as of 1 February 2014. This field must be reset at the end of the year. Tax withholding in January is carried out according to the base percentage in the previous year’s tax card.
Tax deduction card for additional income
The employee can hand over a tax deduction card for additional income to several employers at the same time. Therefore, income from other employers does not affect calculation, and the field for income from other salaries is left blank. When using the tax deduction card for additional income you need to enter the Base percent only. It is also possible to enter Additional percent and Annual income limit.
When using the tax deduction card for additional income, the system automatically updates “1 - Salary from secondary occupation” as the payment type in the Specification by employee.
Graded income tax card
In the graded income tax card, enter annual income limits. All three grades must be entered. When the accumulated income in the tax card exceeds the limit, the system starts using the percentage of the next grade. If the person’s tax card contains only two grades, enter the same percentage for the second and third grade and the same amount for all grades.
If the employee has received salary to the same graded income tax card earlier from e.g. another employer, the person carrying out the salary calculation has to enter the sum in the Income from other salaries field. This means salaries earned earlier using that specific valid tax card.
Tax-at-source card
In the tax-at-source card, the tax percentage is always constant and always has to be entered in the system. If the tax-at-source card is selected, the person’s salaries are updated in line 605 Wages and other payments subject to tax at source in the period tax return.
Freelance-tax card
In the Freelance tax card, the tax percentage is always constant and always has to be entered in the system.
Revised tax card
In the Tax card A and Tax-at-source card, the tick in the Revised tax card box means only that the term “Revised tax card” is printed out for persons who have that card. So, the Revised tax card box affects the tax card name only, it has no impact on calculation. When the tax card is changed, the system starts using the information in the new card. For the time being, the information on the old card is not saved anywhere.
When you tick the Revised tax card box, the current date is automatically displayed by default in the Tax card date field next to that. This is to specify from which payment date salaries have to be considered in the tax card. When you change to a new tax card B, tax deduction card for additional income or graded income tax card in the middle of the year, the Tax Administration has already been informed of the salaries earned during the year, so the system must no longer consider them from the salary slips in the early part of the year. The person carrying out salary calculation ensures that the Income from other salaries field is empty when he or she enters a revised tax card for an employee.