Tax withholding on benefits will be made automatically from the beginning of the year, based on the tax cards that take effect at that time. The income limits on the tax cards are determined based on annual income and apply from the start of the year.
The unemployment fund generally receives the new tax withholding information directly from the Tax Administration. You do not have to send your tax card to the fund separately. However, please note the following:
- The withholding rate for benefits is always at least 25% with a tax card provided for salary payment purposes. For example, if your tax rate for salary is 15.5%, the rate is automatically raised to 25% for benefits unless you provide a revised tax card to the fund.
- Your accrued taxes reset at the turn of the year. Check your income limit at the beginning of the year in the Tax Administration’s MyTax service and order a revised tax card with the correct income limit if necessary.
- If the income limit is exceeded, the benefit paid by the unemployment fund will also be taxed at a higher additional percentage.
- The withholding tax is deducted from the restructuring protection allowance according to the additional percentage on the tax card for wage income or according to the tax rate on the amended tax card intended for the benefit.
How is it possible that the tax rate for benefits can be higher than the tax rate for salary?
Benefit income is not subject to the same deductions as salary income, which may result in a higher tax percentage. To ensure correct taxation, check your tax card and order a revised tax card for the benefit if necessary.
How to request a revised tax card for benefits:
- Sign in to the MyTax service on the Tax Administration’s website.
- Request a revised tax card and provide it to the Open Unemployment Fund.
- The fund receives the new tax card information automatically within two business days.
For more information and detailed instructions, please see the Tax Administration’s website: vero.fi/en
Let’s keep your taxation up to date!
Your unemployment fund provides support and advice to ensure you are taxed correctly. You can also check your tax information in the eService.