Payment (SEPA) and Tax Reporting (KATRE)

Payment of tax-free allowances to employees in Finland can be managed through three different methods. Each employee can only use one payment method per settlement.

The choice of payment method determines when and how the mandatory reporting to the Finnish tax authorities (KATRE) must be made.

1. Payment Methods and Processes

Method A: Direct SEPA Payment (Finnish Payment Services)

The payment is made directly to the employee’s bank account via a SEPA file generated in Acubiz.

• Process and Data Flow:
  1. Acubiz generates both a SEPA payment file and a KATRE reporting file.
  2. The SEPA file is uploaded to the bank, and the payment is executed.
  3. The KATRE file is reported to the Finnish authorities after the payment.
• Reporting Deadline: No later than 5 days after the payment date.
• Scope of KATRE Data: Includes only tax-free travel allowances and tax-free mileage reimbursement. Regular expenses and night allowance are not included in the KATRE reporting.

Method B: Payment via Payroll System

The payment is transferred to the employee’s payslip.

• Process and Data Flow:
  1. Acubiz generates a payroll file containing all payment information.
  2. The payroll file is imported into the company’s payroll system.
  3. The payroll system handles both the actual payment and the subsequent authority reporting.
• Reporting Deadline: Handled automatically by the payroll system according to the applicable payroll cycle and deadlines.
• Scope of KATRE Data: The payroll system filters and reports relevant entries directly to KATRE.

Method C: Payment via Employee Creditor (ERP/Accounting System)

The payment is handled as a creditor payment directly through the company’s accounting system (ERP).

• Process and Data Flow:
  1. Acubiz exports the postings to the ERP system.
  2. The ERP system makes the payment to the employee.
  3. A KATRE file is created and reported to the authorities after the payment.
• Reporting Deadline: No later than 5 days after the payment date.
• Scope of KATRE Data: Includes only tax-free travel allowances and tax-free mileage reimbursement. Regular expenses and night allowance are not included in the KATRE reporting.

2. Comparison Overview