New tax card from MyTax
Earnings-related daily allowance is a taxable benefit. For the payment we need information on your withholding percentage. The easiest way to do it is in the MyTax service of the Tax Administration.
When will I need a new tax card?
When you apply for earnings-related daily allowance, there are three situations in which you should request a new tax card. It is not necessary, but with an up-to-date tax card the taxation will be at the right level at once, and you will usually receive a greater net sum from the earnings-related daily allowance.
- You become unemployed or are laid off and apply for earnings-related daily allowance for the first time
- The income limit of your tax card is approaching
- When you apply for daily allowance and the (tax) year changes
I am applying for earnings-related daily allowance for the first time
We will get the necessary information directly from the Tax Administration. The tax withholding percentage is however calculated for salary. If we pay a benefit using the percentage calculated for salary, we will always increase the withholding percentage to at least 25 per cent, as instructed by the Tax Administration. That is because the withholding for a benefit is calculated in a different way from the withholding percentage for salary. The increase will ensure that the tax withholding is not too low in any case.
In this case it is advisable for you to request a new tax card using the MyTax service. When you give an estimate of your coming benefits and name YTK as the recipient of the tax information, we will get the tax withholding percentage to be used in the payment of the benefit and the income limit directly from the Tax Administration.
You can use our earnings-related daily allowance calculator for estimating the amount of your coming benefits.
The income limit of your tax card is approaching
The income limit stated in the tax card may be exceeded towards the end of the year. Then the withholding percentage paid for earnings-related daily allowance will increase and the net sum of the daily allowance will decrease. That may come as an unpleasant surprise when the holiday season at the turn of the year is approaching.
If you are applying for daily allowance during the rest of the year, you should check the income limit of the tax card and the accrued daily allowance. If the income limit is about to be exceeded, you can request a revised tax card from the Tax Administration for the rest of the year.
You can see your current income limit in OmaYTK by clicking the Tax card button in the top bar. If the income limit is about to be exceeded, you should request from the Tax Administration a revised tax card with a raised income limit for the benefits payable during the rest of the year. In OmaYTK you can also check the accrual of benefits i.e. how much we have paid you earnings-related daily allowance during the current year.
- Check your income limit and accrual in OmaYTK.
- Estimate the accrual of benefits for the whole year using our calculator.
- If necessary, request a new revised tax card for a benefit from the Tax Administration.
When you name us, General Unemployment Fund YTK, as the recipient of the tax card to the Tax Administration, we will receive the electronic revised tax card on the following day. So you need not send the revised tax card to us separately.
That way you ensure that there will be no surprises when we can use the right withholding percentage for the payments during the rest of the year. If you have already done that, everything is fine.
OmaYTK will notify you, if you are close to reaching your income limit. When you request a new tax card, OmaYTK may nevertheless notify that the income limit is approaching. That is because OmaYTK will always notify you if the income limit is less than 3,000 euros away.
When you apply for daily allowance and the year changes
When the year changes and you continue to apply for earnings-related daily allowance, we will pay the daily allowance in January 2021 using the tax information of 2020 in such a way that the accrual in the tax card is reset.
During January 2021 we will automatically receive new tax information from the Tax Administration, but it will be for salary. When the tax card is for salary, we often must increase the withholding percentage, as instructed by the Tax Administration. Thus, we recommend you to request a revised tax card for a benefit from the Tax Administration.
You should request a revised tax card for a benefit in MyTax by the end of January at the latest. Give an estimate on the next year’s earnings-related daily allowance in Mytax. You can estimate the amount of the daily allowance by using our calculator.
Name General Unemployment Fund YTK as the recipient of the tax card in MyTax. Then the Tax Administration will send the new electronic tax card directly to us.