What you need to know about taxation and earnings-related unemployment security
You should soon take a look at your accrued income and make sure your tax rate is determined correctly. It’s easy and can be done in the blink of an eye.
Check your taxes at the latest before Christmas
Earnings-related daily allowance is subject to tax. The Tax Administration has calculated a withholding tax rate for you with a certain income limit. The income limit should be checked well in advance of Christmas. The most regrettable thing is, if the income limit indicated on the tax card is inadvertently exceeded. This means that the withholding tax rate on the unemployment benefit will increase and the share of the daily allowance paid to you will decrease. This can be an unpleasant surprise just before Christmas.
So, if you will be applying for daily allowance towards the end of the year, check the income limit on your tax card and your accumulated daily allowance. If the income limit is about to be exceeded, you can request a new, revised tax card from the Tax Administration for the benefit to be paid during the rest of the year.
In the OmaYTK, you can see your current income limit by clicking on the Tax Card button in the toolbar at the top. If the income limit is about to be exceeded, contact the Tax Administration to request a revised tax card for the benefit. The income limit for the new tax card should have a higher income limit to cover the benefits payable during the rest of the year.
- Check your income limit and accumulated benefits in OmaYTK.
- If necessary, request a revised change tax card from the Tax Administration’s OmaVero service to cover the benefit.
When you notify the Tax Administration that the tax card will be provided for YTK, i.e. you select General Unemployment Insurance Fund YTK from the list, we will receive the revised tax card electronically for use in a few days. It’s easy for you, and you do not need to deliver the tax card to us separately.
This will ensure that there are no surprises. If you have already done this, everything is in order.
Apply for daily allowance only after requesting a revised tax card
If your tax information changes and you want your daily allowance application to be processed according to the new tax information, please submit a follow-up application to us no earlier than the day following the calculation of the revised tax information. You can check your tax information at OmaYTK. Submit a new application after the new tax information is displayed.
Weekends and the system runs of tax administration affect when the new tax information is available to us. A tax card made on Tuesday is typically available to us the next day, Wednesday. On the other hand, the tax card made on Saturday is typically not available to us until the following Tuesday.
If you submit your application on the same day as your new tax information is calculated, your application may end up being paid using your old tax information. In such a case, please contact us immediately and we will get the payment corrected.
Outstanding taxes and tax refunds
You may have received or are due to receive a tax refund for the preceding year, or you may need to pay back taxes. These have no effect on the payment of the daily allowance.
Taxes for 2022
The new year is also approaching. In January 2022, we will still pay daily allowance on the basis of 2021 tax information but, however, the tax card’s accumulated income will be reset to zero.
During January, we will automatically receive the following year’s tax information from the Tax Administration, but it is primarily for the payment of salary. When a tax card is for salary, we often need to increase the tax rate as instructed by the tax authorities.
When you apply for daily allowance, you may want to request a revised tax card for the benefit from the Tax Administration. Provide the Tax Administration an estimate of your earnings-related daily allowance for the entire year. You can calculate an estimate of the daily allowance for the whole year with our calculator.
In the Tax Administration’s online service, remember to indicate General Unemployment Insurance Fund YTK as the recipient of the tax card. The Tax Administration will then electronically deliver the revised tax card directly to us.