Non-wage compensations for work

A non-wage compensation is a compensation for work, an assignment, or a service in other form than wages or salary. The work is performed based on a commission relationship, i.e., the employee is not in an employment relationship with the payer.

Non-wage compensations for work are reported to the Incomes Register if the performer of the work receiving the compensation is not registered in the prepayment register. The information can be checked from www.ytj.fi. The performer of the work can be a natural person or a limited liability company, association, a general partnership, or a limited partnership, for example.

Non-wage compensation for work must also be reported when

• a payer, who is insured in accordance with the Public Sector Pensions act, pays non-wage compensation for work to an income earner who is registered in the prepayment register and who is not insured under the self-employed persons' pensions act
• the income earner is a natural person who is a non-resident taxpayer
• the income earner is a company considered a non-resident taxpayer and tax at source has been collected from non-wage compensation for work

The share of Value Added Tax included in the non-wage compensation for work is not reported to the Incomes Register.

If pay periods are not used, the days when the work was performed can be reported as the pay period. The date reported as the start date is the first day of performing the work and the date reported as the end date is the last day of performing the work.

Report the non-wage compensation for work under the income type Non-wage compensation for work (336). 

Report Organisation as the income earner if the income earner is a general partnership, limited partnership, limited liability company, cooperative, association, foundation, or some other legal person governed by civil law.

Reimbursement of expenses related to non-wage compensation for work

Tax-exempt reimbursements of expenses cannot be paid to the recipient of a non-wage compensation for work at the same time. Add reimbursement of expenses related to the non-wage compensation for work to the amount of the compensation and report the total sum under income type Non-wage compensation for work (336).

Exception: Reimbursement of expenses paid as a non-wage compensation subject to the Public Sector Pensions Act (JuEL, julkisten alojen eläkelaki 81/2016) is not considered pensionable income from work. If a payer subject to the Public Sector Pensions Act pays reimbursements of expenses together with a non-wage compensation to a natural person who is not insured in accordance with the Self-Employed Persons' Pensions Act and who is not registered in the prepayment register, the reimbursement of expenses must be reported to the Incomes Register. In such a case, the reimbursements of expenses must be submitted in a different earnings payment report and in a separate record than the non-wage compensation paid. The pension policy number or Keva's other mandatory data are not submitted.

Non-wage compensations for work paid to a company or natural person with limited tax liability

Non-wage compensation for work paid to a company with a limited tax liability must be reported, if the payer has collected tax at source from the payment. Non-wage compensation for work paid to a natural person with a limited tax liability must always be reported regardless of whether or not tax at source has been collected.

Report the non-wage compensation for work and the tax collected from it under the income types Non-wage compensation for work (336) and Tax at source (404). Also report that the income earner has limited tax liability.

A payer subject to the Public Sector Pensions Act

A payer subject to the public sector pensions act (JuEL, julkisten alojen eläkelaki 81/2016) must always report to the Incomes Register the non-wage compensation for work and the withholding tax if the income earner is a private person not insured under the pension insurance for the self-employed (YEL). The data on the income earner must be reported with a personal identity code. Therefore, the report must be submitted even if the income earner is registered in the prepayment register. There is no age limit or euro limit for reporting data to the Incomes Register. However, the same age limits for insurance that are applied in JuEL employment relationships also apply to the non-wage compensation paid by a payer subject to the Public Sector Pensions Act. For more information, see the instructions on Keva's Incomes Register page (in Finnish). An employee’s pension insurance contribution collected for a non-wage compensation is not reported to the Incomes Register. For more information on reporting non-wage compensations, see the Incomes Register instructions. Non-wage compensations paid by a payer subject to the Public Sector Pensions Act are discussed in Section 3.1.2.