Salary Accounting

According to the Act on the taxation procedure of self-assessed taxes, the accountable party paying the payment, such as employers, must keep payroll accounting for payments subject to withholding tax, tax at source, withholding tax on wages and salaries, final payroll tax and employer's health insurance contributions. The payroll cards, the pay slips, combinations of payments and the account for tax withholdings are payroll accounting materials.

A payslip is a document given to the employee that states the paid payment and the tax withholdings thereof. A payslip is not part of the mandatory accounting materials. The pay card is a single list for wage earners all payments from a calendar year as well as for all payments under tax withholdings and tax withholdings thereof. A pay list is a single list for all pays and payments under tax withholdings paid at the same time to different wage earners. The combination of payments is a combination of pay lists and other payments that state the information to be included in the tax declaration referred to in the Act on the taxation procedure of self-assessed taxes. The employer under the obligation to withhold taxes must use the tax withholding account in order to credit the tax withholdings to his/her accounts.

Pay and other entries must be credited to payment accounting and notes. The connection between payslip and pay card as well as the amount payable to the tax administration and the notifications to be given must clearly be noticeable.