The insurance-related controls of salary types
Salary types in Procountor obey the income type specific controls of insurances.
The Incomes Register has determined in advance the insurance contributions that belong to different income types. Therefore, every income type has a default value that is used to calculate the insurance contributions. If incomes are paid with the default values, the employer does not have to determine the social insurance contributions with salary reporting. More information about this topic can be found from the Incomes Register’s website.
The Incomer Register states that, for example, evening shift allowance is under the obligation of all social insurance contributions (earnings-related pension insurance contribution [TyEL], unemployment insurance contribution, accident insurance contribution and health insurance contribution) by default. Therefore, all evening shift allowance salary types in Procountor have the same controls of insurance. Salary type’s insurance control is then in line with the default insurance specification of the corresponding salary type in the Incomes Register.
Different kinds of salary types on a salary slip
A single salary slip and employee’s salary base can include various salary types that have different insurance controls between them.
The example below presents a basic salary row in the salary base that is allocated to the Time-rate pay income type. In addition, the salary base includes also Evening shift allowance and Initiative fee salary types.
Time-rate pay and Evening shift allowance are subject to all social insurance contributions by default. Values set for these salary types are included in the earnings-related pension insurance contribution (TyEL) and unemployment insurance contribution calculation in the employee’s salary base. In addition, the values given for the salary types are noted also with the calculation of the employer’s statutory insurances.
A salary type that is subject only to health insurance contribution is chosen to the salary base from the Initiative fee salary type. Therefore, the value set for the Initiative fee salary type is not included in the calculation of employee’s portion of earnings-related pension insurance contribution (TyEL) and unemployment insurance contribution. This salary type is also not included in the calculation of employer’s portion of earnings-related pension insurance contribution (TyEL), unemployment insurance contribution, accident insurance contribution and group life insurance. Initiative fee salary type is included in the calculation of health insurance contribution.
Income types with situation-specific insurance controls
The Incomes Register has determined in advance all the social insurance contributions that a specific income type is subject to. Some income types are eligible for changes in their insurance controls due to situational variables. With most income types, situation-specific insurance is not possible.
The table below presents all income types that are eligible for situation-specific changes with social insurance contributions. For example, the payment of social insurance contributions may vary depending on if the earner is or is not employed by the payer.
The salary type register of Procountor includes various salary types for a single income type. Procountor has a separate salary type for every situation that is possible with insurance payments. Therefore, please pay attention to the insurance controls of the salary types listed below.
|
Income type code |
Income type name |
Procountor's salary type
|
|
202 |
Initiative fee |
Several salary types |
|
308 |
Compensation for membership of a governing body |
Several salary types |
|
310 |
Monetary gift for employees |
Several salary types |
|
209 |
Kilometre allowance (taxable) |
Several salary types |
|
210 |
Meeting fee |
Several salary types |
|
214 |
Lecture fee |
Several salary types |
|
215 |
Compensation for acting in a position of trust |
Several salary types |
|
315 |
Other taxable benefit for employees |
Several salary types |
|
317 |
Other fringe benefit |
Several salary types |
|
407 |
Reimbursement collected for other fringe benefits |
Several salary types |
|
326 |
Compensation for employee invention |
Several salary types |
|
320 |
Stock options and grants |
Several salary types |
|
219 |
Partial pay during sick leave |
Several salary types |
|
222 |
Benefit arising from synthetic option |
Several salary types |
|
343 |
Employee stock option |
Several salary types |
|
226 |
Share issue for employees |
Several salary types |
|
352 |
Wages for insurance purposes |
Several salary types |
|
233 |
Profit-sharing bonus |
Several salary types |
Salary types with situation-specific insurance controls
All salary types in Procountor include predetermined insurance information that is transferred to the earnings payment report in a standardized way.
It is not possible to create insurance controls to a salary type in Procountor. Instead, a correct salary type (with controls matching the situation in question) has to be chosen from the salary type register to the salary slip. All income type specific insurance situations that can be reported to the Incomes Register have been created to Procountor.
For example, Initiative fee is an income type that is eligible for situational variation of social insurance contributions.
There are 16 different variations of the Initiative fee income type in Procountor’s salary type register. Each of the 16 types have a different kind of insurance control. The salary types are listed in the table below as an example.
| Income type code | Income type | Salary type in Procountor | Code |
| 202 | Initiative fee | Initiative fee, all insurance | 2620 |
| 202 | Initiative fee | Initiative fee, only pension ins | 2800 |
| 202 | Initiative fee | Initiative fee, only health care ins | 2801 |
| 202 | Initiative fee | Initiative fee, only unemployment | 2802 |
| 202 | Initiative fee | Initiative fee, only accident | 2803 |
| 202 | Initiative fee | Initiative fee, only pensions and hci | 2804 |
| 202 | Initiative fee | Initiative fee, only pension and unempl. | 2805 |
| 202 | Initiative fee | Initiative fee, only pension and accident | 2806 |
| 202 | Initiative fee | Initiative fee, only hci and unempl | 2807 |
| 202 | Initiative fee | Initiative fee, only hci and accident | 2808 |
| 202 | Initiative fee | Initiative fee, only unempl. and accident | 2809 |
| 202 | Initiative fee | Initiative fee, all but pension | 2810 |
| 202 | Initiative fee | Initiative fee, all but hci | 2811 |
| 202 | Initiative fee | Initiative fee, all but unempl. | 2812 |
| 202 | Initiative fee | Initiative fee, all but accident | 2813 |
| 202 | Initiative fee | Initiative fee, no insurance | 2814 |
Reporting the insurance information of a salary type
All salary types in Procountor include predetermined insurance information that is transferred to the earnings payment report in a standardized way.
It is not possible to edit the salary types of Procountor. Instead the correct salary type (with controls matching the situation in question) is chosen from the salary type register to the salary slip.
According to the Incomes Register, an exception to insurance information must be reported in the earnings payment report if the payer changes the default social insurance contribution value of an income type. Procountor’s standardized salary types include the exception to insurance information by default if the exception has to be reported due to the insurance controls of the salary type in question. Therefore, the payroll accountant has to be sure only about choosing the right salary type (that matches the insurance needs) to the salary slip. The salary type already includes the reporting-related controls in a standardized form.