This help applies to cases where non-wage compensation for work is paid to a company that is not part of the prepayment register. The income register provides guidelines for reporting non-wage compensation for work.

CONTENT

Establishing a company as an employee

The first step is to establish the company in the program as an employee. This is done from: 

Salaries > Personnel > New employee

Select "Company" from the dropdown menu as the employee type.

Only companies with a Finnish business id can be established in Netvisor. Fill in the other details. The basis for the employment relationship can be set as "Other basis". 

If the payments received by the employee are not subject to social security contributions, select "Not subject to employer's health insurance contribution".

Remember to also select "Chargeable services" for the Salaries service, otherwise a payslip cannot be created for the company in the payroll process. Activating the Salaries service creates a billing basis. Detailed instructions for pricing can be found here: Billing basis for the Salaries and travel service.

Tax card details are added to the employment information on the "Tax cards" tab:

Salaries > Personnel > Employee listing > click on the employee's name > Tax cards > New tax card. 

New salary type for the VAT-inclusive amount of non-wage compensation for work

To display the necessary rows on the payslip, new salary types must be created in the salary model formulas.

First, define the new salary types and check the income register's instructions for reporting non-wage compensation for work, i.e., which salary type should have income type allocation and with what information the earning payment report is sent to the income register. The income type allocation can be added from the salary type settings. Also, add bookkeeping accounts to the salary types as needed according to your company's bookkeeping practices. 

The necessary salary types are:

  • VAT-inclusive amount of non-wage compensation for work
  • VAT-exclusive amount of non-wage compensation for work
  • VAT portion included in non-wage compensation for work

Create new salary types at:

Salaries > Payroll > Salary model management > Company-specific salary types > Add new salary type

Add "Salaries and allowances" as the group for the salary type, "Not considered" as the payroll list group, and the source is "User's formula". 

After saving, the created salary type is added to the formula of the "Salary in money" salary type in the used salary model. This is done from: Salaries > Payroll > Salary model management > click "Formulas" next to the desired salary model > from the pencil/notepad icon next to the "Salary in money" salary type > make the addition to the formula from the green plus as shown in the image below by selecting the first row operation: plus sign and the second row salary type: VAT-inclusive amount of non-wage compensation for work and save.

After this, the created salary type appears in the list of formulas for the salary model to which it was just linked.

New salary type for the VAT portion

Create a new salary type named "VAT portion included in non-wage compensation for work".

Fill in at least the following details for the salary type:

The salary type should be added to the "To be paid" salary type formula: 

Salaries > Payroll > Salary model management > from the correct salary model "Formulas" > "To be paid" salary type row pencil/notepad icon > add the newly created salary type to the formula as shown in the image below. Select the first row operation: plus sign and the second row salary type: VAT portion included in non-wage compensation for work and save.

The salary type should also be subtracted from the "Salary in money" salary type formula. Add the first row operation: minus sign and the second row salary type: VAT portion included in non-wage compensation for work.

 

New salary type for the VAT-exclusive amount of non-wage compensation for work

For the VAT-exclusive amount, create a new salary type from company-specific salary types and set the necessary settings for this salary type. Select "user's formula" as the source.

Link the salary type to the salary model:

Salaries > Payroll > Salary model management > Select the used salary model > Formulas > Salary type formulas tab > Link salary type to salary model: VAT-exclusive amount of non-wage compensation for work > Link 

The salary type should be manually given a formula. Add rows from the green plus. The first row should be salary type: VAT-inclusive amount of non-wage compensation for work, the second row should be operation: minus sign, and the third row should be salary type: VAT portion included in non-wage compensation for work.

Creating a payslip

You can create a payslip at 

Salaries > Payroll > Payslips and periods > click on the desired pay period dates from the salary model to which the company receiving non-wage compensation for work is linked.

Create the payslip normally up to the "unprocessed payslips" stage. Then select "edit" and "add new salary type row". Choose "VAT-inclusive amount of non-wage compensation for work" from the dropdown menu and "add".

Enter the amount for the salary type and save.

 Add another new salary type row to add the VAT portion to the calculation:

Example calculation:

The example deals with an invoice related to a case, with a total amount of 500 euros. This amount includes VAT of 96.78 euros.

Withholding tax is deducted from the VAT-exclusive amount of the case, i.e., 500 e - 96.78 e = 403.22 euros, according to the tax card information. In the example, the withholding tax is 4%, so the withholding tax amount is 403.22 e * 0.04 = 16.13 e.

The company is paid the remaining portion of the VAT-exclusive amount after withholding tax, i.e., 403.22 e - 16.13 e = 387.09 e. In addition, the VAT portion of 96.78 e is to be paid. The total amount to be paid is thus 387.09 e + 96.78 e = 483.87 e.

In the payroll process, you can preview the information of the earning payment report to be sent to the income register. Check the income type allocations and other necessary information according to the income register's instructions.

Proceed with the payslip in the payroll process and select the "unpaid payslips" stage function "mark as paid". In the function, you can send or skip sending the earning payment report to the income register. After this, a bookkeeping voucher is created. Please check that the voucher details are correct. You can edit them manually if necessary.

After this, you still need to make a separate bank transfer to the invoicing company for their share, and remember to remit the VAT to the tax authorities. The payslip serves as a voucher for the compensation recipient.

Handling accounts payable

In accounts payable, the invoice can be rejected and a comment added to the invoice explaining its handling in payroll.

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.


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