This article covers information of processing compensation for work in Procountor. Processing the compensation for work can vary depending on the case, so the purpose of the example described in this article is to illustrate the functions behind the processes.
Processing of compensation for work salary type
Income register has defined that the salary type compensation for work does not belong to the area of social insurance payments.
The salary info of an employee receiving a compensation for work
Salary type compensation for work is processed to match to the income register’s income type compensation for work. Because of the income type compensation for work’s default processing, no TyEL payment or subject to unemployment insurance contribution are withheld from the salary type compensation for work.
If a salary type belonging to the range of insurances, is added to the salary base, TyEL payment and subject to unemployment insurance contribution are withheld from the added salary type and the calculated amounts of withholdings are marked to the row information of the salary type.
If the Recipient of compensation for work option is selected in the field Applied special handling of travel expenses, all compensation for work salary types, kilometer, daily and meal allowances are allocated to the income register’s income type compensation for work on the salary slip.
When the salary type compensation for work is selected in Procountor, income taxes must be paid, but insurance payments are not automatically collected. This salary type is processed to match to the income register’s income type compensation for work. If the Recipient of compensation for work option is selected in the field Applied special handling of travel expenses, also the items on the travel invoice (kilometer, daily and meal allowances) are allocated as a compensation for work in the income register and the income tax will not be withheld from the allowances.
Exceptions in insuring
When it comes to the salary type compensation for work, defining the exceptions in insuring is not necessary, since the processes of the insurances have already been defined for the salary type in question. As a default, salary type compensation for work is not in the range of social insurances. In case where the employer does not insure the employee, the exceptions should be selected in the field Applied insurance exception types. The selections in question should be carefully considered.
If the situation with the employee’s insurances varies, the exceptions in the field Applied insurance exception types should be left without selections and let the default processing of the salary type compensation for work make the changes automatically.
When the exceptions in the field Applied insurance exception types are be left without selections, different salary types with the obligation to insure can be added to the salary base and salary slip. The insurance contracts can be defined for the salary types on the Salary info view, and the salary type specific definitions can be made in salary base.
The definitions made in the field Applied insurance exception types are stronger than the salary type’s own insurance processes. So, if an exception is selected, for example to prevent processing of TyEL insurance, the exception covers all salary types on employee’s salary slip and salary base. The exception prevents adding the TyEL row to the salary base, and thus no TyEL insurance is withheld from any salary type on the salary base.