Settlement Points

CONTENT

• Settlement point settings
• Settlement point basic data
  • Type 
  • Name 
  • Pension insurance company ID
  • Pension insurance arrangement number
  • Reported by separate notification
• Calculation
  • Reducing salary type on payslip
  • Insurance percentage
  • Tyel income lower limit
• Payment
  • Default period
  • Is settlement paid
  • Bank account number 
  • Reference number
• Discontinued data
  • Salary types used for calculation
• Employees linked to settlement point 
• Example of creating a new settlement point

Settlement points manage social insurance payments, union membership fees, and distraints. Settlement points define the percentages for side cost allocations, specify the account number and reference numbers for payments, and generate settlement reports. Netvisor has six default settlement points, but more can be created as needed. Each union membership fee requires its own settlement point. Similarly, each employee must have their own "Distraint" settlement point. Default settlement points are sufficient for social insurances.

Settlement point settings

Settlement point settings can be managed:

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 

Pension insurance, unemployment insurance, union membership fee, accident insurance, distraint, group life insurance, and 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

The arrangement number must be 11 characters long. If the number is shorter than 11 characters, add the missing number of zeros after the hyphen, e.g., 46-00123456. The beginning of the arrangement number must match the selected pension insurance company ID.

Please note that Etera's 90-prefixed insurance numbers are no longer used in earning payment reports. All Ilmarinen customers use a 46-prefixed insurance number for reporting data to the income register.

Reported by separate notification

The settlement point settings include the option "Reported by separate notification," which is selected by default. This setting allows the reporting of TyEL insurance company data by separate notification for months without earning payment reports. If earning payment reports are generated for a month, the selection automatically omits reporting pension insurance data by separate notification, even if the option is enabled, as the data is already reported in earning payment reports.

Calculation

Reducing salary type on payslip

The salary type by which the settlement is reduced on the payslip. Defined for "Pension insurance", "Unemployment insurance", "Distraint" and "Trade union dues" settlement points.

Insurance percentage

The field defines 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). The program's automation is built so that the insurance percentage is set as the total percentage.

Side cost allocation percentages are used in monthly obligations in the calculation of settlement points.

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.

Tyel income lower limit

The field defines the lower limit of pay income, which, when exceeded, the employee falls under the settlement point. This is used only for the "Pension insurance" settlement point.

Payment

Default period

The defined default period affects the date range of the newly created settlement. If the period is selected as a month, the proposed date range for the settlement will be a month.

Is settlement paid

If you do not want to create bank transfers from the settlement point to the "Settlements" page, you can choose not to set it.

Bank account number 

Enter the bank account number in IBAN format

Reference number

When using company-specific reference numbers, the monthly changing reference is saved in this field before creating the settlement. If employee-specific references are used, they are saved in the "Settlement point employee-specific reference numbers" section. The "Reference number" field is mandatory, so when using employee-specific references, you can save, for example, the January reference in the field. The settlement always retrieves the reference number primarily from employee-specific references.

Default postings

Define the accounting debit and credit accounts used in the recording of the side cost allocation voucher. This is used only for social insurance settlement points.

Discontinued data

Salary types used for calculation

The basis for the company's payable share is determined by the insurance handling of the income type assigned to the salary type. You can see the salary types directed to this insurance in the "Salary types used for calculation" section.

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 Distraint) defined the salary type in the field by which the deduction is made on the payslip (e.g., Trade union dues or Distraint)

Company-specific salary types define the income type and the handling of TyEL, TVM, Accident, and sickness insurance payments.

Payroll > Payroll > Salary model management > Company-specific salary types

Employees linked to settlement point 

Employees must be linked to all settlement points that concern them. Employees can be linked to a settlement point from the employee's basic data or from the settlement point settings by selecting "Link employee to settlement point".

The settlement point data can be found in the employee's basic data. 

Payroll > Personnel > Employee listing

1. "Link employee to settlement point"
2. Select "Employee" from the dropdown menu > "Save"

Example of creating a new settlement point

In the example, a new settlement point is created for the union membership fee. You can create a new settlement point from the "Go to settlement point settings" view link "New settlement point".

Basic data

• Type: Union membership fee
• Name: union name

Calculation

• Reducing salary type on payslip: trade union dues are deducted from the employee and forwarded to the union, so the salary type by which the deduction is made on the payslip is selected as the basis for the payable share

Payment

• Default period: settlements are made monthly
• Is settlement paid: bank transfers to the union are desired from the settlement point, so this is selected
• Bank account number: account number in IBAN format
• Reference number: January settlement reference number
  

Link employee Kaisa Monthly Salary, who belongs to Union X, to the settlement point.

1. "Link employee to settlement point"
2. Select "Employee" > "Save"

Add employee-specific monthly changing reference numbers. Community update notice 11.1.2023: Company-specific references for settling union membership fees

1. Select Settlement point employee-specific reference numbers
2. Edit
   
3. Select Employees and year. Save reference numbers for months and "Save".

If the reference does not contain information about the month and year either in the form 012023 or 202301, we cannot automatically generate reference numbers for other months. In this case, all monthly references must be entered manually.

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