Employers have a variety of obligations related to the payment of salaries and wages (vero.fi): the employer must provide the tax withheld at source from salaries and wages, and pay the employer's health insurance payments (former social security contributions) as based on the wages. Both payments are remitted to the Tax Administration. In addition, employers must take out pension insurance and other mandatory insurance policies for their employees.
Register as an employer in the Finnish Business Information System (BIS) (ytj.fi) and take care of accident and pension insurance policies:
Make agreements with an insurance company.
Insure yourself (entrepreneur’s YEL insurance) and your employees (employee’s TyEL insurance).
Calculate and pay
Calculate salaries and other remunerations in the Palkka.fi service (palkka.fi):
Calculate your employees’ taxes, i.e. the taxes withheld at source, based on their tax rates (ask them to provide their tax cards).
Calculate the pension and insurance payments.
Calculate the trade union contribution, if your employee has requested you to pay it.
Pay and declare
The Palkka.fi service formulates the payments into invoices that you can pay through your bank. Via the service, you can also submit:
Reports of employer contributions to the Tax Administration
Annual returns to the Tax Administration, Unemployment Insurance Fund (TVR) and insurance companies.