If the payroll administration uses the Tax Administration interface, the current withholding taxes for all employees are automatically obtained from the Tax Administration and then integrated into the payroll system.
This eliminates the need to issue a tax card to the employer annually.
-The tax card information interface provides a more economical and time-saving process for payroll administration. Paper tax cards no longer need to be processed. Automatic data transfer also makes employees’ lives easier: it is enough for an individual employee to log in to MyTax to update their withholding rate if necessary – they don’t have to do anything else, says Sauli Kukkonen, tax administration IT development expert.
The interface was released last December. Currently, employers who use it receive a total retention rate of about 500,000 employees.
– The user interface has gained popularity and the number of users grew rapidly, especially during the summer months. On the other hand, there are still many organizations that do not use the user interface, even if it would be useful for them, Sauli Kukkonen adds.
If you want to know if your personal tax card information is transferred automatically, you can contact your employerโs payroll administration and ask if it uses the Tax Administration interface.
The new features provide an interface for payers of pensions and benefits
At present, the primary users of the withholding tax card interface are Finnish employer companies. According to Sauli Kukkonen, the most active user groups are companies that provide accounting and payroll services to the self-employed as a โlightโ entrepreneur. Another important group of employers is the employee leasing industry.
– Workers’ incomes in these sectors are constantly changing, and during a typical year, many changes need to be made to their tax cards. This has created a lot of extra work for accounting and payroll.
In the fall of 2021, a number of new features will be introduced: the interface will provide additional features that will be easier to use for organizations that pay unemployment benefits, insurance benefits, pensions, and various benefits.
Changes to the employer accounting software are necessary
Integration into the employer companyโs software and Tax Administration interfaces requires some changes to the programโs settings. If your organization uses software purchased from a commercial service provider, we recommend that you ask your service provider if integration with our interfaces is possible.
Similarly, if your organization takes care of its own software development independently, you can contact the tax administration and ask for support and guidance.
Integration is likely to incur change costs. The cost varies depending on what has been agreed between your organization and the service provider. However, organizations can use the Tax Administration interface free of charge.
The tax administration offers more than 30 user interface solutions for transferring tax information between taxpayers, companies and organizations. The plans for 2022 include several new user interfaces.
Source: Tax Administration
Source: The Nordic Page