Taxation in early 2020
At the start of the year many people are wondering about taxation. Here are some tips for you!
- We can use last year’s tax card for daily allowance paid in January. You do not have to worry about your income limit, because we reset it at the start of the year.
- The withholding tax for daily allowance will be based on the tax card that is valid on the allowance payment date, regardless of the allowance period. For example, if we pay daily allowance for December today, we will use the tax card that is currently valid, even if it is for 2020.
- We automatically receive tax cards for 2020 from the Finnish Tax Administration. However, they are intended for the taxation of salary. If we use a salary tax card for earnings-related daily allowance payments the withholding tax is always at least 25%, according to instructions by the Tax Administration.
- When applying for daily allowance, it is recommended that you get a new tax card from the Finnish Tax Administration and provide them with an estimate of the benefits you will receive this year. This way you can get a revised tax card which we can use directly to pay your earnings-related daily allowance.
- You can estimate the annual amount of daily allowance by multiplying the daily allowance for one day by 258. The amount of daily allowance paid for one day can be found in your earnings-related daily allowance decision. If you have not yet received your decision, you can use our calculator to estimate the amount.
- When applying for a new tax card from the Tax Administration enter us, YTK Unemployment Fund, as a recipient. This allows the Tax Administration to deliver us the information directly, without you having to deliver us your tax card separately as an application attachment.
- We will update your tax information as soon as we receive it. We may not receive your new tax information on the same day that you order it from the Tax Administration. For example, if your daily allowance is due to be paid on 24 January and you order a new tax card on the same day, we will most likely not be able to use the new information for that payment.