This guide provides an example situation of handling an accommodation benefit, where the employer deducts from the employee's net pay an amount equivalent to the taxable value of the benefit.
NOTE! The amounts in the guide are only examples. If the value of the benefit deducted from the net pay is less than the value of the benefit from which employer's contributions should not be withheld, the difference must be handled with its own salary type, from which employer's contributions and withholding tax are collected, with the appropriate income type allocation.
See detailed instructions and examples from the income register for income types in the 400 series of salaries.
An example in this guide is the accommodation benefit. The value of the fringe benefit is reported in full with its own income type and the amount of the employee's self-payment portion is reported with the Reimbursement collected for other fringe benefits income type.
For this purpose, two new salary types are created:
1) Accommodation benefit, no tyel, tvm
2) Accommodation benefit cash value deduction
New salary types are created from company-specific salary types:
Pay > Payroll > Salary model management > Company-specific salary types > Add new salary type
1) Accommodation benefit, no tyel, tvm
The value of the fringe benefit is reported in full with its own income type, which is selected from the salary type settings. Also add account allocations to the salary type (these are not addressed in the guide).
2) Accommodation benefit cash value deduction
Add account allocations to the salary type if necessary. This salary type reports the portion of the fringe benefit value that the employee pays themselves.
Once both salary types have been added from company-specific salary types, the Accommodation benefit cash value deduction salary type is linked to the "To be paid" salary type formula, as insurance premiums or withholding tax are not handled from it. The Accommodation benefit, no tyel, tvm salary type is not linked to the "Gross pay" salary type formula.
Pay > Payroll > Salary model management > Select from salary model > Formulas > Salary type formulas tab > Calculatory > To be paid > Edit (pencil/notepad) > Green plus > Calculation and minus sign > Green plus > Salary type: Accommodation benefit cash value deduction > Save
Add a formula to the Accommodation benefit cash value deduction salary type:
Pay > Payroll > Salary model management > Select from salary model > Formulas > Salary type formulas tab > Deductions > Accommodation benefit cash value deduction > Edit (pencil/notepad) > Green plus > Salary type: Accommodation benefit no tyel, tvm > Save
Edit the salary model formatting to place the new salary types in the desired location on the payslip, so that the salary type is clearly readable for the employee.
Pay > Payroll > Salary model management > Select salary model > Formatting tab
If desired, the salary type "Accommodation benefit no tyel, tvm" can be hidden from the payslip view, as it is only used for reporting to the income register. Even if the salary type is hidden, it is visible to the payroll accountant on the "Payroll accountant view" tab.
Example of using salary types on a payslip
On the employee's payslip, the Accommodation benefit of 1000e must be handled, from which they pay a self-payment of 1000e. The Accommodation benefit must be reported with income type 301, but insurance premiums should not be deducted from it. For this purpose, a separate salary type "Accommodation benefit no tyel, tvm" is used, which differs from the normal Accommodation benefit salary type.
The payroll accountant adds the salary type "Accommodation benefit no tyel, tvm" from the "Add new salary type row" menu to the generated payslip and enters the amount as 1000e.
This automatically creates a row for the "Accommodation benefit cash value deduction" salary type, which is the same amount as the Accommodation benefit no tyel, tvm salary type.
In the salary model formatting, the salary types are arranged in the positions shown in the example image below Cash pay and Net pay for improved readability.
The preview of the pay information notification can be used to check the details of the income types. When the value of the fringe benefit is reported in full with its own income type (301) and the amount of the employee's self-payment portion is reported with the Reimbursement collected for other fringe benefits income type (407) on the same pay information notification, it is understood in the income register and taxation that the fringe benefit does not affect the employee's taxable earnings, even though normally insurance deductions and withholding tax are handled from fringe benefits.
From the paid payslip, a separate notification is correctly formed, meaning that the amount of the fringe benefit is not considered in the salaries subject to social security contributions, as it is not linked to the Gross pay formula.
NOTE! The reconciliation view of Netvisor's pay information notification will show the accommodation benefit incorrectly, as insurance handling cannot be optionally selected for income type 301.
The report raises the fringe benefit of 1000e from the payslip to salaries subject to insurance premiums due to the income type allocation, even though insurance premiums or withholding tax have not been handled from the Accommodation benefit no tyel, tvm salary type.
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