change in the reporting of wages in 2019? Webinar, 8 February 2018, - PowerPoint PPT Presentation

The Incomes Register: What will change in the reporting of wages in 2019? Webinar, 8 February 2018, 1 – 2.30 p.m.

Contents of the presentation • Introduction to the Incomes Register – Schedules • Key principles of the procedure – What will it mean for citizens? – What will change in the work of a payroll officer? • Reporting information – Reporting channels and authentication – What information will be reported and how? • Correction of information • Sanctions • What current data flows will the Register replace? • Summary 15.6.2018

One register – one standardised way to act • The Incomes Register is a national online database. It contains comprehensive wage, pension and benefit data at individual level. • Payers have an obligation to report the details of payments to the Incomes Register – In real time (payment date + 5 days) – Individually for each payment – According to commonly accepted standards • The purpose of the Incomes Register is simple – The Incomes Register collates data and distributes it to the parties that need it. The Incomes Register does not modify or refine the data entered in it, but acts as a distributor of raw data. 15.6.2018

Two-phase implementation • During the first phase, beginning in 2019 , earnings payment data will be reported to the Incomes Register • As of 2020 , pension and benefit data will also be reported to the Incomes Register • The reporting of data to the Incomes Register will immediately apply to all earned income payers as of 1 January 2019, and to all benefit payers as of 1 January 2020. 15.6.2018

Incomes Register Data users 2019 Kela (Social Insurance Institution of Finland) Wage earner or recipient of benefits income 2019 Earnings-related pension providers and the Finnish Centre for Pensions Bank account 2019 Unemployment Insurance Fund 2019 Finnish Tax Administration € 2020 Payslip The Education Fund or benefit 2020 Incomes Labour protection authorities decision Register Administrative sector of the Ministry of Economic 2020 Employer 1 2019 Affairs and Employment 2020 Employer n 2019 Statistics Finland Benefit payer 1 2020 2020 Unemployment funds Benefit payer n Non-life insurance providers 2020 2020 Local authorities 2020 15.6.2018

Key principles of the Incomes Register

Key points of the procedure • Online transactions are a basic requirement – Only in commonly accepted, standardised formats – The formal correctness of the data should be checked at source whenever possible • Payers report the information of individual income earners to the Incomes Register whenever they make payments to them – The data is stored in the Incomes Register in real time – Payment triggers reporting • Payers can view their own data in the Incomes Register – Payers can request matching reports on the information they have submitted 15.6.2018 7

Key points of the procedure • Payments made on 1 January 2019 and later are reported to the Incomes Register, along with any corrections to be made to such earnings. – Wages and earned income paid in 2018 and before will be reported separately to each authority as before. • Data submitted to the Incomes Register is retained in the income information system for a period of ten years, which matches the time for which employers are obliged to retain their payroll and other bookkeeping information. • The Incomes Register does not create new data access rights – not all data in the Incomes Register is freely available to all – the legislation specifies which data each user may view or use 15.6.2018

What will it mean for citizens? • All income information registered in the Incomes Register and concerning the income earner will be available through an e-service – Earnings payment data, pension income information and information on benefits paid will be easily accessible in one place and in real time via an e-service. – In the future, income earners will not have to deliver the income information, reported to the Incomes Register, to data users such as Kela or unemployment funds. – Income earners can order an Incomes Register extract stating their earned income. – For the first time, the Incomes Register will provide income earners with a real-time, overall view of their pay and benefit information. • The Incomes Register will not impose new obligations on income earners • Wages paid by households will also have to be reported to the Incomes Register 15.6.2018

What will change in the work of a payroll officer? • The rhythm of reporting earnings payment data will change – Reporting will occur in real time and payment-specifically. In practice, there will be a transition from annual reporting to payment-specific reporting – The last annual information returns for earnings will be filed for the year 2018. – Reporting-related work will be more evenly distributed over the year. • The obligation to report the same earnings payment data multiple times will be eliminated. • The number of retroactive investigations will be reduced – if the data has been submitted once, it will not be requested again. 15.6.2018

What will not change in the work of a payroll officer? • The Incomes Register will have no effect on payment obligations or cash flows – the change only applies to reporting • The Incomes Register will not change payroll accounting or obligations concerning the storage of accounting information • The Incomes Register will not eliminate salary slips • Certain statistics-related obligations will remain • The Incomes Register will not eliminate income tax returns 15.6.2018

Channels for reporting to the Incomes Register

Information reporting channels • Information can be reported to the Incomes Register via different channels: 1. Technical interface: Data will be transferred to the Incomes Register directly from the payroll management system • No separate login will be required when submitting a report • The Incomes Register will be integrated with the payroll management system • Use of the interface will require the retrieval of a certificate 2. Electronic upload service: Data can be uploaded as files • Will require login • The login page for the e-service will be incomesregister.fi • Suomi.fi authentication will be used to log into the e-service • Certificates will not be used in the e-service • Will require authorisation for Incomes Register roles from a person with the authority to sign on behalf of the company 15.6.2018

Information reporting channels • Information can be reported to the Incomes Register via different channels: 3. Online form in the e-service : manual data entry • Requires logging into the Incomes Register's electronic customer service • Suomi.fi authentication is used for the login • No connection to the payroll management system • No certificates used 4. Paper: The information is submitted on a paper form • Special reasons 15.6.2018

Authentication • The Suomi.fi authentication shared by the public administration is used to log into the Incomes Register's e-service. – Available roles: • Earnings payment data reporting • Viewing earnings payment data – Authorisations are generated in the suomi.fi authorisation service according to specific guidelines • Companies can authorise the necessary persons for reporting data from August 2018 onwards • Companies must check that signing authorisations entered in the Trade Register are up to date – Katso authentication will no longer be available to private employers • Foreign companies and public administration actors can authorise persons via the Katso service • More detailed schedules and instructions will be published later on the incomesregister.fi website 15.6.2018

Reporting information

Data contents of earnings payment data • The data contents are divided into two reports: 1. Earnings payment report • Mandatory information (M) • Complementary information (V) – Complementary income types – Other complementary additional data 2. Employer's separate report • Information not reported on an earnings payment report • Earnings payment data contents have been constructed in cooperation with data users and providers. Because every piece of data in the Incomes Register is needed by a user, there is no unnecessary data. 15.6.2018

Reporting information with the earnings payment report • The employer or other payer reports paid wages and other earned income with a separate earnings payment report for each income earner. • Each report contains information on a single payment made to a single income earner. • Several income items of different types, such as monetary wages, fringe benefits and kilometre allowances, can be reported for the same income earner on the same report. • Even if several income types are reported, deductions made from the pay can be reported as a total sum for all income types. • Households will also use the earnings payment report to report wages paid by them. 15.6.2018