The implementation of a national incomes register on 1 January 2019 to change payroll administration processes in Finland
A national incomes register (KATRE) will be implemented on 1 January 2019, after which notifications to the authorities will be made primarily through the incomes register. The implementation of the national incomes register will result in changes to payroll administration processes.
With this notice, we will communicate the core changes related to the incomes register as well as the issues that will impact the activities and processes of our clients in advance. At this time, the implementation of the incomes register will not require immediate action by our clients, and we will provide our clients with further instructions in the autumn.
Information to be provided for the incomes register
The implementation of the incomes register will have an impact on what information must be reported to the national incomes register. All information has been categorised as either compulsory or complementary. At Azets, we aim to report as complete a record of client information for the incomes register as possible, including both compulsory and complementary details, thereby reducing the need for multiple notifications and retroactive corrections.
At the moment, the records for some of our clients are missing information that, in the future, must be provided for the incomes register. We will go through this data for each client and send out further instructions in the autumn.
The implementation of the incomes register will also change the e-Authorization practices for making notifications. The current Katso-Authorization will be replaced by Suomi.fi e-Authorization. In the future, this change will make notifying the authorities easier. We will send out further instructions for our clients in the autumn.
The processing of outside of standard payroll periods
Many of our clients pay their employees’ salaries outside of standard payroll periods, e.g. as net advance payments Previously, such payments have been recorded for the next standard payroll period. In the future, this will not be possible, as notification of the gross sum of these payments must be made for the incomes register within five days of the payment being made.
Due to these changes, we recommend that our clients discontinue the practice of making net advance payments, and that all are paid within standard or additional payroll periods.
Reimbursement of travel expenses
In the future, notification of all taxed and tax-free reimbursements for travel expenses (daily allowances, mileage etc.) must be made for the incomes register within five days of the reimbursements being paid. This is a considerable change to the current practice, according to which the details of reimbursements made are provided for the tax administration only once a year with an annual notification. In case you as a customer are responsible for processing your own travel reimbursements, Azets will not be able to provide the details of the payments for the incomes register in the future.
Azets is able to offer a travel expenses calculation and reimbursement system and service, through which we can also take care of making the required incomes register notifications on our clients’ behalf. For more information on this service, please get in touch with your contact person.
More information on the incomes register can be found on the tax administration website: