An employer is obligated to withhold tax from any wages paid and pay the employer’s health insurance payments (former social security contributions).
The amount of withholding tax is calculated based on the withholding percentage stated on the employee’s tax card and deducted from the employee’s gross wage.
The employer's health insurance payments, on the other hand, is calculated based on the total amount of wages paid. The amount of the contribution varies somewhat year by year.
Withheld taxes and the employer’s health insurance payments are paid to the the Tax Administration. The due date is the twelfth day of the month following the wage payment month.
TIP: The Palkka.fi service can be used in remitting withheld taxes and health insurance payments free of charge. The service calculates wages including indirect costs and generates payment data, notifications and accounting records.
Employer’s duties of notification