Summary
This guide explains the management and settings of settlement points. It describes how settlement points are used to define the percentages for side cost allocations, account numbers and reference numbers for payments, and how to generate settlement reports. The guide also provides step-by-step instructions for creating a new settlement point and linking employees to settlement points.
Manage social insurance payments, union membership fees, and foreclosures with settlement points. Use settlement points to define the percentages for side cost allocations, the account number and reference numbers for payments, and to generate settlement reports. Use the program's six default settlement points or create more as needed. Create a separate settlement point for each union. Also create a separate "Distraint" settlement point for each employee. Use default settlement points for social insurances.
Settlement point settings
Manage the settlement point settings by opening the following view:
Payroll > Payroll > Settlements > Go to settlement point settings
Settlement point basic data
The settings of different settlement points can be edited from the "pencil/notepad" icon at the end of each settlement point row.
The fields displayed in the settlement point data depend on the settlement point "type". The image below is from the pension insurance settlement point settings.
Type
Select one of the following types:
pension insurance,
unemployment insurance,
union membership fee,
accident insurance,
distraint,
group life insurance
or other insurance.
Name
You can name the settlement point as you wish.
Pension insurance company ID
The pension insurance company ID to be reported to the income register can be selected from the dropdown menu.
Pension insurance arrangement number
Enter the arrangement number with 11 characters. If the number is shorter than 11 characters, add zeros after the hyphen to reach 11 characters, e.g., 46-00123456. Make sure that the beginning of the arrangement number matches the selected pension insurance company ID.
Please note that Etera's 90-prefixed insurance numbers are no longer used in earning payment reports. Use a 46-prefixed insurance number for reporting data to the income register; this is used for all Ilmarinen customers.
Reported by separate notification
Keep the "Reported by separate notification" option in the settlement point settings active. With this setting you can report the TyEL insurance company data by separate notification for months for which an earning payment report is not created. If earning payment reports are created for a month, the program automatically omits the pension insurance data from the separate notification because the data is already reported in earning payment reports.
Calculation
Reducing salary type on payslip
Define the salary type by which the settlement is reduced on the payslip. Define this for the "Pension insurance", "Unemployment insurance", "Distraint" and "Trade union dues" settlement points.
Insurance percentage
Define in the field the allocation percentage used for settlement points whose calculation is based on the percentage given to the settlement point (Pension insurance, Unemployment insurance, Accident insurance, or Other insurance). According to the program automation, set the insurance percentage as the total percentage.
Use the side cost allocation percentages in monthly obligations for calculating settlement points by opening the following view:
Payroll > Payroll > Obligations > Monthly obligations
The employee's share is handled on the payslip, and the employee's TyEL and TVM payment postings are defined in company-specific salary types.
Payroll > Payroll > Salary model management > Company-specific salary types > Deductions
Tyel income lower limit
Define the lower limit of pay income at which the employee falls under the settlement point when exceeded. Use this only for the "Pension insurance" settlement point.
Payment
Default period
Define the default period for the date range of newly created settlements. If you select the period as a month, the proposed date range in the settlement will be the date range of the month.
Is settlement paid
Leave this setting unselected if you do not want to create bank transfers from the settlement point to the "Settlements" page.
Bank account number
Enter the bank account number in IBAN format.
Reference number
When using company-specific reference numbers, save the monthly changing reference in this field before creating the settlement. Save employee-specific references in the "Settlement point employee-specific reference numbers" section. As the "Reference number" field is mandatory, save, for example, the january reference in the field when using employee-specific references. The settlement always retrieves the reference number primarily from employee-specific references.
Default postings
Define the accounting debit and credit accounts used when recording the side cost allocation voucher. Use this only for social insurance settlement points.
Discontinued data
Salary types used for calculation
Check the salary types directed to the insurance in the "Salary types used for calculation" section. In the future, the basis for the company's payable share is determined according to the insurance handling of the income type assigned to the salary type.
Before the income register, settlement points whose calculation was based on the percentage given to the settlement point (Pension insurance, Unemployment insurance, Accident insurance, or Other insurance) defined the calculation basis in this field, usually "Gross pay". Settlement points that forward payments deducted from the employee (Union membership fee or Foreclosure) defined the salary type in the field by which the deduction is made on the payslip (e.g., Trade union dues or Distraint).
Define in company-specific salary types the income type and the handling of TyEL, TVM, Accident, and sickness insurance payments by opening the following view:
Payroll > Payroll > Salary model management > Company-specific salary types
Employees linked to settlement point
Link employees to all settlement points that concern them. Proceed as follows:
Open the employee's basic data to see the settlement point data. Open the view:
Payroll > Personnel > Employee listing
Select "Link employee to settlement point" either from the employee's basic data or from the settlement point settings.
Select "Employee" from the dropdown menu and then select "Save".
Example of creating a new settlement point
Create a new settlement point for the union membership fee. Create a new settlement point by opening the "Go to settlement point settings" view and selecting the link "New settlement point".
Define the settings of the new settlement point as follows:
Define Type: union membership fee.
Define Name: union name.
Define Reducing salary type on payslip: select the salary type by which the deduction is made on the payslip, because trade union dues are deducted from the employee and forwarded to the union.
Define Default period: settlements are made monthly.
Select Is settlement paid: select this so that bank transfers to the union are created from the settlement point.
Define Bank account number: account number in IBAN format.
Define Reference number: january settlement reference number.
Link employee Kaisa Monthly salary, who belongs to Union X, to the settlement point as follows:
Select "Link employee to settlement point".
Select "Employee" and then "Save".
Add employee-specific monthly changing reference numbers.
Select Settlement point employee-specific reference numbers.
Select Edit.
Select Employees and year. Save reference numbers for months and select "Save".
Enter the references for all months manually if the reference does not contain information about the month and year in the form 012023 or 202301, in which case we cannot automatically generate reference numbers for other months.
Frequently asked questions
What are settlement points used for?
Settlement points manage social insurance payments, union membership fees, and foreclosures. They define the percentages for side cost allocations, account numbers and reference numbers for payments, and are used to generate settlement reports.How long must the pension insurance arrangement number be?
The arrangement number must be 11 characters long. If it is shorter, the missing number of characters is added as zeros after the hyphen.What does the "Reported by separate notification" setting do?
This setting allows the TyEL insurance company data to be reported by separate notification for months for which an earning payment report is not created. If an earning payment report has been created, the data is not reported separately with a separate notification.From where does the system primarily retrieve the reference number for the settlement?
The settlement retrieves the reference number primarily from employee-specific references.
Keywords
settlement point, payroll, social insurance payment, union membership fee, foreclosure, settlement report, income register, reference number, salary type
This article has been translated using an AI-based translation tool. The contents or wording of these instructions may differ from those in other instructions or in the software.