In the new Salaries section, the employee’s Salary info view (Payroll (new) > Employee register > Edit salary info) includes new data fields used for providing key information for calculating salaries and reporting salary information.
You can save several employment relationships in the employee’s salary information.
The validity periods of these relationships are not limited, so an employee may have several current employment relationships at the same time. The Incomes Register instructions provide further information on how to report employment relationship information.
The Type field includes the same options as the current salary section. Copying the information transfers the information directly from the old section to the new one.
In the Incomes Register, the employment type shows whether the income earner is employed full time or part time. In the Incomes Register, the duration of employment shows whether the income earner’s employment relationship is in effect until further notice or for a fixed period. Both of these types of employment relationship information are supplementary; the payer is not obliged to report them.
In Procountor, information is not transferred from the employment type to the earnings payment report. Neither does selecting the employment type implement any kind of calculation on the person’s salary statement any longer.
In the Reason for termination menu, you can find the termination of employment options corresponding with the code sets of the Incomes Register. In the Incomes Register instructions, you can find a description of the situations in which the different options are used. Procountor transfers information from the Reason for termination data field to the salary report.
In the Registration grounds ID (Keva) field, you can enter a pension insurance-specific code maintained by Keva, if the pension policy is provided by Keva. The Registration grounds ID information can be used to specify, for example, the type of a specific employment relationship or an occupational group. The information is meant for the use of Keva’s customers. If the employment relationship is insured under the Public Sector Pensions Act, the basis for registration is mandatory information.
You can find Keva’s different pension cover codes on the Keva website.
Please note that the data field should be left empty, if this information is not required. If a code has been entered in the field, it is transferred to the salary report.
The amount of base salary and the specified salary type are provided as the Base salary. The copying of the salary information has already transferred this information to the view.
The base salary types used in the previous salary section, Commission, Commission without pension information and Commission to an outsider, are specified as Compensation for work in the new Salaries section. In the new Salaries section, Payment by job can also be selected as a base salary type.
According to the Incomes Register instructions, the salary type describes the basis for the income earner’s salary. The salary may be based on a monthly salary, an hourly salary or payment by job. Reporting the salary type to the Incomes Register is not mandatory, so for the time being, the information is not transferred to the salary report.
In Procountor, a salary base is generated for a person on the basis of the basic salary specifications. The salary base is used as a salary statement template.
The amount of hours belonging to the base salary comes from basic salary info management in the new Salaries section. If the divider of the hourly salary depends by person, the hourly salary divider can be specified separately for each employee.
The Salary channel setting specifies how the salary statement is delivered to the employee. Currently, the options are mail or e-mail. An e-mail message generated in Procountor is not protected, so you should ask for the employee’s written consent to send salary statements via e-mail.
Applied income earner types should be selected, if the additional information pertains to an income earner. The Partial owner option affects the employee’s unemployment insurance contribution withholding rate in the salary base. After the November update of Procountor, you can check the effect in the employee’s salary base.
Other additional income earner information options have no impact on how the salary base is created for the employee in Procountor. The additional income earner information option is transferred to the salary report.
Applied special handling of travel expenses
As a rule, tax free travel expense reimbursements are reported to the Incomes Register using specific income types. With the Not applicable setting, kilometer allowances, daily allowances and meal allowances are reported in the salary report subject to their specific income types. This setting should only be changed in one of the exceptional situations described below.
In some situations, the kilometer allowance, daily allowance or meal allowance information should be reported to the Incomes Register as earned income using the ‘Non-wage compensation for work’ income type. In this case, the salary report should include information on whether the income earner is a recipient of compensation for work or a member of a non-profit organisation. This personal setting changes the tax free kilometer allowance income type to the Compensation for work income type.
In Procountor, tax free reimbursements can be processed both in salary statements and travel invoices. This setting in the employee’s salary information changes the income type specification in both receipts. It only needs to be specified once in the person’s salary information that their travelling expenses should, as an exception, be processed as earner income. After this, tax free reimbursements processed for travel invoices as well as salary statements are transferred to the earnings payment report under the Compensation for work income type.
We would recommend using travel invoices for the processing of tax free reimbursements also in the future. In a travel invoice, the travel calculator can also be used to process kilometer allowances and daily allowances.
If necessary, you can enter the tax number in the employee’s tax card in the Employee tax number (FI) field.
With an eye on January’s salary calculation, tax deduction cards A, one income limit, a tax card for additional income, a graded income tax card, a tax-at-source card and a freelance tax card have been built in the new Salaries section.
Procountor’s new Salaries section no longer includes A tax card’s cumulative calculation method. Instead, in January’s salary calculation you can use tax card A, which is implemented using period-specific tax calculation.
The 2019 tax card only has one income limit for the whole year’s salaries. The 2019 tax deduction cards will enter into force on 1 February 2019.
Tax deduction card information
You can add several tax cards in the Tax card view. The Valid from field is mandatory information, because it helps to find the latest tax card of the tax year. The monitoring of tax cards at the tax year level has also been implemented such that if a tax card has not been stored for the new tax year at all, tax withholding in the employee’s salary statement will be implemented at 60% taxation.
Select the Type of the tax card and add information regarding a potential revised tax card. You can save basic and additional percentages as well as an annual limit for a tax card. You can enter free-text comments in the Comments field.
Tax card type
One income limit
2019 tax deduction cards are one-income-limit tax cards. If a B tax card was used in 2018, the tax card is stored in the new Salaries section as a one-income-limit tax card. The previous year’s B tax card can still be used in January 2019.
Also used in international situations in 2019.
Tax card A, tax deduction card for additional income and freelancer tax deduction card
You can find these tax cards in the new Salaries section, so as to be able to implement the January 2019 salary calculation using the 2018 tax cards. These tax cards will no longer be used from February 2019 onwards. Please note that for now, the software also enables you to add these tax card types for the 2019 tax year.
Graded income tax card
Click the separate Graded tax card button to add the graded income tax card information. First, add the tax card row information, that is, the entry into force date, then select as the tax card type Graded income tax card. After this, the Graded tax card button becomes active and you can enter the tax percentages shown in the view that opens. The graded income tax card can be used for the January 2019 salary calculation.
Direct transfer of 2019 tax cards
You can implement the direct transfer of 2019 tax cards in Procountor from 28 November 2018 onwards. Our manual will be updated regarding the functionality closer to the date.
The information in the Labour union and Collective agreement fields is transferred to the Salaries section when the information is copied. The membership start date and end date are also transferred during the copying, if they were provided in the earlier salary section.
Insurance policy information is not automatically transferred to the new Salary info view when the salary information is copied. Insurance policy information must be separately added to Management > Salary info (new) > Salaries Basic info.
After the November version update launch, you can fill in the insurance company data fields for several employees at a time.
The Pension insurance may be TyEL, YEL or MyEL.
The numbers of active TyEL policies are visible as options in case the policy information has been added in environment management.
If the selected pension insurance type is YEL or MyEL, the insurance policy number is not processed in the Salary info view.
The Accident insurance policy numbers are visible as options in case the policy information has been added in environment management.
The Accident insurance category of risk is determined by the accident insurance payment percentage specified in the Salaries basic info view. The employer’s payment percentages applicable to 2019 will be updated in the Salaries basic info view directly after the percentages have been made public. At the moment, the percentage is according to the 2018 information.
Occupational title ID – in Procountor, add to this field the identifier in accordance with the occupational classification (TK10) of Statistics Finland (format: NNNNN).
By default, the Occupational title ID cannot be set as complete in the Salaries basic info view, because this information is personal. However, remember that following the November version update, you will be able to save the information for several employees at a time. The option to edit the salary information of several employees at a time in the employee register will be enabled in the November version update.
Applied insurance exception types
If the income earner is not covered by Finnish social security or the payer is not obliged to insure the income earner, it is a case of an insurance exception.
If you set an insurance exception for an employee in the Salary info view, this will prevent insurances to be processed in the salary statement and transfers the insurance exception information to the earnings payment report. Insurance exception types apply to the whole earnings payment report. In other words, it is a powerful setting linked to the employee.
Please note that after the November version update, you can view Procountor’s new salary types, which are in line with the income types used in the Incomes Register. Procountor’s new salary types in themselves include insurance specifications. You can use different salary types in the salary base and salary statement with different insurance specifications.
Voluntary insurance in Finland
The employment insurance policy selection is made in a situation where a voluntary insurance has been taken out for the employee in Finland. The selection field activates TyEL calculation in the salary statement regardless of, for example, the insurance exception selection.
The information in the Social security certificate field are selected if necessary and the selected additional employee information is transferred to the earnings payment report as the income earner’s information.
The Not subject to withholding in Finland selection prevents tax withheld in advance or withholding tax at source from being withheld from the person. In a situation like this, the tax card information is not added to the person at all.
If a tax card to be used in the tax year has not been saved for the employee, Procountor will seek to implement a tax withholding of 60%. Selecting this option prevents automatic withholding tax from being generated for the salary base and the salary statement.
If the person is a non-resident taxpayer, this information must be included in the earnings payment report to the Incomes Register.
The following options can be selected in the Six-month rule is applicable field: Empty, No, Yes. There are certain situations in which the report must include a notification, if the six-month rule does not apply. Because of this, Procountor provides the option to leave this information out by leaving the relevant data field empty. If necessary, the report can include the information Yes or No.
The manual will be updated with regard to how different international situations should be processed during the rest of 2018. Procountor’s Salary info view now provides the option to use settings for information, which in certain situations must be reported to the Incomes Register. All voluntary data fields have not been implemented.