Your net daily allowance may be smaller – remember to check your taxation!
When the year is coming to an end, you should check you tax rate. The tax rate affects the amount of earnings-related daily allowance that is paid to you after tax.
If you have an income ceiling in your tax card, you should check it at the latest when the year is coming to an end. If your income is more than the ceiling, we will have to apply a higher withholding tax rate. This means that you will be paid less earnings-related daily allowance. This may not be a nice surprise just before the Christmas holidays. You should remember to check your income and tax rate with the Tax Administration.
Taxation of unemployment allowance
You must pay tax for the earnings-related daily allowance. When you receive earning-related daily allowance, we will pay the withholding tax to the Tax Administration. The amount of the withholding tax depends on your tax card.
The Tax Administration has made a separate decision regarding withholding tax for earnings-related daily allowance and withholding tax rate for salary. It says that the minimum withholding tax for a daily allowance is 25% if you have not submitted a revised tax card for the daily allowance to us.
Revised tax card for an unemployment benefit
When you receive earnings-related daily allowance, you should request a new tax card for the benefit from the Tax Administration and send it to us.
You can order a tax card using the electronic service of the Tax Administration. Please note that a revised tax card for a benefit is not listed separately. You will get one when you order a regular tax card and state how much earnings-related daily allowance you expect to receive.
You will find the amount of your daily allowance in the decision we send to you. You can find that decision in the OmaYTK service. You can also estimate the amount of the daily allowance using our daily allowance calculator. When you multiply the daily allowance for one day by 258, the result is an estimate of the daily allowance paid for the whole year. You can use that estimate when you order a revised tax card. The daily allowance calculator also includes a tax card section: it allows you to estimate the benefit amount for the entire unemployment period.
In the same section where you enter the estimate on the amount of the benefit, you can enter Yleinen työttömyyskassa YTK as the recipient of tax information. Then the Tax Administration will forward the new tax information directly to us. If you are sending an application for daily allowance at the same time, please wait for one day before sending the application. Otherwise, we may pay the daily allowance using the old tax information.
You can also send the tax card to us using the electronic OmaYTK service. There you will find a tax card button with which you can add a new tax card.
Income ceiling in the tax card
If you have an income ceiling in your tax card, you should check it at the latest when the year is coming to an end. If your income is more than the ceiling, we will have to apply a higher withholding tax rate. This means that you will be paid less earnings-related daily allowance. This may not be a nice surprise just before the Christmas holidays. You should remember to check your income and tax situation with the Tax Administration.
The Tax Administration is responsible for the WITHHOLDING TAX RATE
The Tax Administration will calculate the withholding tax rate based on the information you give. If you have any questions about the amount of withholding tax and the factors affecting it, you should contact the Tax Administration.