You can create salary lists in 2021 for the year 2022. Calculating salaries for 2022 requires that the salary base of each employee is updated.
Salary bases can be updated from December 17, 2021 onwards and the instructions for this update can be found in this article. The employer contribution percentages for 2022 are available starting on December 17, 2021.
Last banking day of the year
- Salaries paid as SEPA salaries with a payment date of December 31, 2021 must be sent to the bank by the afternoon of December 30, 2021. Your own bank can give you more information on bank-specific cut-off times and payment deadlines.
- Please note that Friday, December 31, 2021 is a shorter banking day than usual. Check your bank for possible changes in the payment deadlines. We recommend making any payments for this year well before the cut-off times.
Paying salaries at the end of the year
Updates to paying salaries
- We have prevented the change of payday in salary slips if the year changes as well. I.e you can change the payday if it's still within the same year. The payday change, even if the year changes as well, is possible in the salary list creation stage.
- This change is due to making sure that the insurance percentages are correct on the salary slips.
- If the payday needs to be changed to a different year, a new salary list needs to be created
- On the salary slip PDF the tax card information has been moved to the bottom of the PDF and it now also gives information of remaining limit left on the tax card. This should make it easier for the employee to see if a new tax card needs to be applied.
- We have added a new payer type Pool of household employers to the Salaries basic info view (Management > Salary info > Salaries basic info).
From the year 2022 onward, the Incomes Register requires two payer types to be reported on the Employer’s Separate Report: Household and Pool of household employers.
Changes in salary types
Salary type changes for 2022 will be implemented in v58 version update on December 18, 2021. The new salary types cannot be used before this date.
Salary types changing names:
-
Change the existing salary type name: 7030. New name: 7030: Employer-subsidised commuter ticket, tax-exempt share, without insurances
- Change the existing salary type name: 7035, New name: 7035: Bicycle benefit, tax-exempt share, without insurances
New salary types for 2022:
The following salary types may be used on salary slips that have their due date in the year 2022.
If there is a need for new insurance deduction types, please contact our customer service, who will relay the feedback to our product development. Product development can then add the salary type to the next possible update.
- 7031 Employer-subsidised commuter ticket, tax-exempt share. The salary type includes all insurances, without health insurance (2022-).
- Mapped to income type 341
- 7036 Bicycle benefit, tax-exempt share. The salary type includes all insurances, without health insurance (2022-))
- Mapped to income type 363
Changes to salary percentages
|
Name of field in Procountor |
2021 |
2022 |
|
Employee's unemployment insurance contribution payment percentage |
1,40% |
1,50% |
|
part-owners |
0,65% |
0,74% |
|
Employee's pension insurance contribution payment percentage those under the age of 53 and over 62 |
7,15% |
7,15% |
|
those aged 53–62 |
8,65% |
8,65% |
|
Employer’s unemployment insurance contribution payment percentage |
0,50% (salary up to 2 169 000,00€) |
0,50%( salary up to 2.197.500,00€) |
|
for the value of the salary |
1,90% (exceeding 2 169 000,00€) |
2,05% (exceeding 2.197.500,00€) |
|
Employer's health insurance contribution percentage |
1,53% |
1,34% |
|
Group life insurance |
0,06% |
0,06% |
|
Occupational accident |
0,70% |
0,70% |
|
Employers’ average pension insurance contribution percentage |
16,95% |
17,40% |
Changes to fringe benefits
Car benefit
- In case the car's introduction year is the upcoming year, the car benefit can be calculated already in the previous year, if the values for the new year have been entered.
- New car benefit discount for low emission cars. Low emission cars with emission value 1-100g per kilometer, have 85€ discount for the years 2022-2025.
- Procountor's car benefit calculator have been added a new field called Emission value. If the emission value is between 1-100, the discount would be 85€. No other value than 0-100 is allowed.
-
A discount of 120€ for unlimited company car benefit, as well as a temporary discount of 170€ for both benefit types (during 2021-2025) is applied to all-electric vehicle and hydrogen car with introduction year 2020 or later.
- A discount of 60€ for unlimited company car benefit, as well as a temporary discount of 85€ for both benefit types (during 2022-2025) is applied to low emission vehicles (Hybrid car) with introduction year 2021 or later. When having a low emission car, also Emission value -field should be filled.
Fields in Procountor's car benefit calculator:
More information in the changes to fringe benefits can be found from Tax Administration's website.
Updating salary bases and employer contribution percentages
To calculate salaries for 2022. the employees’ salary bases must be updated. Before updating the salary bases it is recommended that all salaries for the year 2021 are paid to avoid having to change, for example, the travel expense salary type values for 2021. Calculating salaries for 2022 can be done as follows:
1. The update can be done by creating a new salary list (Payroll > New salary list) with a payday in 2022. When the payday is set to 2022, Procountor requests to update the salary bases.
2. If you want to update the salary bases, click the Update salary bases button.
- Travel expense salary type values have been updated to the new 2022 values.
- Up until the end of the year version update (v59) on 1.1.2022, the travel expense salary type values will be the old 2021 values, and if travel expense salary types are added from the product register to salary slips before this update, the product prices must be manually updated to the new 2022 prices when calculating salaries for next year.
3. Procountor provides a list of employees that have a custom accident insurance percentage or the car and accommodation benefit.
- It is possible to update employee's custom accident insurance percentages directly to a row. New percentages will be updated to the employees' information.
- If an employee no longer needs a custom accident insurance percentage, you can update the percentage to be the same as in the company settings. After that the employee doesn't show up on this list anymore for having a custom percentage
- If you have employees with Car or Accommodation benefit, make sure to update their values to the salary base manually.
The lists of employees that might require actions are not available after continuing. Export the lists if you wish to access them later.
4. Press Continue button.
5. Check the employer payment percentages.
- Make sure that the Salaries basic info view (in Management > Salary info > Salaries basic info) has the correct percentages for employer’s payment for 2022. To see the percentages for 2022, select the year from the drop-down menu.
- By default, the employer’s payment percentages are updated to the default percentages.
- When creating a salary list with the payday in the year 2022, Procountor will use the employer’s payment percentages selected in the Salaries basic info.
6. After the salary bases have been updated, you may continue working on the salary lists and salary slips.
What withholding tax percentage should be used on January’s salaries?
- Withholding tax for January is withheld according to the percentage of the tax card of 2021, unless the employee has submitted a revised tax card valid from January 2022 onwards.
I updated the salary bases but need to calculate salaries for 2021. What should I do?
- Salary slips can still be created for the year 2021.
- When the payday of the salary list is in 2021, Procountor automatically used the employer contribution percentages of 2021.
- When creating a salary slip, make sure the employee accident insurance contribution percentage matches the percentage of 2021.
- Make sure that the travel expense salary type values match the 2021 travel expense salary type values.
- Make sure that the car and accommodation benefit values match the 2021 values of these benefits.
Direct transfer of withholding tax details
- Direct transfer of withholding tax details opened in Procountor on September 29, 2021 and will be open until February 15, 2022.
- More information on direct transfers of withholding tax details can be found here.
Holiday pay reservation
- To check the holiday pay reservation for December, the Holiday reports (Reports > Salary reports > Holiday reports) must be run before calculating salaries for January, since the dates for the report cannot be selected.
- If salaries have already been calculated for January, they will be shown on the report.
Start of the year version update (v59) January 1, 2022
- Version update for the end of 2021/beginning of 2022 will update the new 2022 travel invoice and expense claim product prices.
- The values for travel expense salary types selected from the salary type register for salary slips will be updated to the 2022 values.
Travel invoices
- Kilometer allowance and per diem values will change at the beginning of 2022.
- Products with the product code “v2021” should be used on invoices dated to the year 2021 and products with the code “v2022” on invoices dated to 2022. The new products will be released at the start of the year.
- 2021 products will be available in the product register for January and February 2022.
- Travel invoice payment date must be in 2021 to include these travel invoices on the 2021 earnings payment report.
Updates to the EU VAT percentages in 2022
- The VAT percentages of different EU countries will be updated to Procountor during January and February 2022, after the European commission has confirmed the changes to these percentages. These foreign VAT percentages for different EU countries are available to users who have specifically requested the free special right Foreign VAT for their Procountor environment.
- If you need additional VAT percentages sooner, please contact our customer service, and we will attempt to update these percentages sooner.
- The foreign VAT special right enables the handling of sales and purchase invoices of a VAT liable company in another EU country. The VAT percentage of this particular country is selected on the invoice and the VAT is reported to the local tax authority.