Both the employer company payroll office and individual worker can save time through the program interface which gives employers current worker withholding rates i.e. their tax card information. Later in 2021, the interface will contain new features designed for payers of pensions and social benefits.

If the payroll office uses the interface of the tax administration, the current withholding rates for all workers are automatically received from the tax administration and then integrated into the payroll system.

This removes the need to give the tax card to his employer every year.

– The tax form information interface offers a more economical and faster process for payroll offices. It is no longer necessary to deal with paper tax cards. The automatic transfer of information also makes workers’ lives easier: the individual worker just needs to log into MyTax to update their withholding rate if necessary – they have nothing else to do, says Sauli Kukkonen, IT development specialist at the Tax Administration.

The interface was launched last December. Currently, employers using it collect withholding tax rates for some 500,000 workers in total.

– The interface has gained popularity and the number of users has grown rapidly, especially during the summer months. On the other hand, there are still many organizations that do not take advantage of the interface when it would be useful for them, adds Sauli Kukkonen.

If you want to know if your personal tax card information is transferred automatically, you can contact your employer’s payroll department to ask if they are using the tax administration interface.

New features provide interface access for pension and benefit payers

At present, the main users of the interface for withholding tax card rates are Finnish employers. According to Sauli Kukkonen, among the most active user groups are companies that offer accounting and payroll services to the self-employed under agreements known as “light” entrepreneurship. Another important category of employers is in the leasing industry.

– The incomes of workers in these sectors are constantly changing, and in a typical year many changes must be made to their tax records. This created a lot of extra work for the accounting and payroll offices.

In the fall of 2021, a set of new features will be introduced: the interface will offer additional and easier-to-use functionalities for organizations that pay unemployment benefits, insurance benefits, pensions and various benefits.

Changes to the employer’s accounting software are required

Integration with employing company software and tax administration interfaces requires some modifications to program settings. If your organization uses software purchased from a commercial service provider, we recommend that you ask the provider company if integration with our interfaces is possible.

Accordingly, if your organization manages its own software development independently, you can contact the tax authorities for assistance and instructions.

Integration is likely to incur expenses due to the changes. The costs vary depending on what has been agreed between your organization and the service provider. However, organizations can use the interface of the tax administration free of charge.

The tax administration offers more than 30 interface solutions for tax data transfers between taxpayers, companies and organizations. Plans for 2022 include several new interface launches.

Source: Tax administration