Earnings-related daily allowance, mobility allowance and restructuring protection allowance are taxable income. A-kassa withholds tax from benefits based on the information on your tax card.
It is a good idea to check your tax rate and income limit, especially towards the end of the year. If the income limit on your tax card is exceeded, tax may be withheld from the benefit at the higher additional rate.
If you have been a member of A-kassa since the beginning of the year, we receive the details of your tax card for wages, which came into effect at the beginning of the year, directly from the Finnish Tax Administration. You do not need to send us your tax card separately unless you want to change your tax rate.
If your membership started during the year, attach your tax card to your application. If you order a new tax card for benefits from the Finnish Tax Administration, select Open Unemployment Fund as the payer of the benefit. This way, we will receive the new tax card directly from the Finnish Tax Administration.
How benefits are taxed using a tax card for wages
The amount of tax withheld from the benefit depends on your tax card and on the benefit in question.
- When a tax card for wages is used, the withholding tax on earnings-related daily allowance and mobility allowance is always at least 25%.
- Withholding tax on restructuring protection allowance is calculated according to the additional tax rate on your tax card for wages.
- Expense allowance paid in connection with earnings-related daily allowance is tax-free income.
You can order a revised tax card for benefits
If you do not want withholding tax to be based on the information on your tax card for wages, you can order a revised tax card for benefits from the Finnish Tax Administration.
Order the revised tax card in the Finnish Tax Administration’s MyTax service. In the section reserved for benefits, enter an estimate of the earnings-related daily allowance you expect to receive. If you have not yet received a decision on your earnings-related daily allowance, you can estimate the amount using our daily allowance calculator.
Select Open Unemployment Fund as the payer of the benefit. This way, we will receive the details of your new tax card electronically directly from the Finnish Tax Administration within approximately 1–2 working days, and you do not need to send the tax card to us separately.
The revised tax card is valid from the date it is received by the fund. The tax rate cannot be changed retrospectively.
For more information and detailed instructions, visit the Finnish Tax Administration’s website: vero.fi
Check your income limit as well
It is a good idea to check the income limit on your tax card, especially towards the end of the year. If the income limit is exceeded, tax will also be withheld from benefits paid by A-kassa at the higher additional rate.
Check your income limit in the Finnish Tax Administration’s MyTax service and, if necessary, order a revised tax card for benefits with an income limit that corresponds to your estimated annual income. The accumulation of income for the tax card starts again at the beginning of a new year.
In A-kassa’s eService, you can check which tax rate we are using. You can also monitor how much of your income limit has been used.
A-kassa’s membership fee is tax-deductible
A-kassa’s membership fee is tax-deductible. The membership fee does not appear on your tax card, but according to the Finnish Tax Administration, you do not need to order a new tax card because of this.
A-kassa automatically reports the membership fees you have paid to the Finnish Tax Administration. The information will be included in your pre-completed tax return, so you do not need to report it yourself.