Contracts and taxes

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Lula
Posts: 16
Joined: Mon Aug 28, 2017 1:22 pm

Contracts and taxes

Post by Lula » Mon May 10, 2021 8:44 am

Hello,

My work contract changes all the time and I'm not sure what to do about the taxes. At April my work time was reduced (and the salary with it) for 2 weeks so I changed my tax card. The salary I will get for May will be the way it was befor the reduced time, some extra for April and paid holidays that I want to cash out. After that my work contract will change to houre- based. My current tax card has a very low tax and the salary of May will not fit it, will I be charged lisäprosentti directly from that salary, or at the end of the year if it's needed?

Thank you



Contracts and taxes

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FinnGuyHelsinki
Posts: 1191
Joined: Sun Nov 08, 2009 8:52 pm

Re: Contracts and taxes

Post by FinnGuyHelsinki » Mon May 10, 2021 8:57 am

Lula wrote:
Mon May 10, 2021 8:44 am
Hello,

My work contract changes all the time and I'm not sure what to do about the taxes. At April my work time was reduced (and the salary with it) for 2 weeks so I changed my tax card. The salary I will get for May will be the way it was befor the reduced time, some extra for April and paid holidays that I want to cash out. After that my work contract will change to houre- based. My current tax card has a very low tax and the salary of May will not fit it, will I be charged lisäprosentti directly from that salary, or at the end of the year if it's needed?

Thank you
The annual income limit is stated in your tax card, up to which the basic percentage applies, and exceeding which the additional percentage applies. Run the numbers and see whether you want to change the tax percentage for the rest of the year.

betelgeuse
Posts: 3955
Joined: Thu Aug 29, 2013 1:24 am

Re: Contracts and taxes

Post by betelgeuse » Mon May 10, 2021 9:55 am

Lula wrote:
Mon May 10, 2021 8:44 am
Hello,

My work contract changes all the time and I'm not sure what to do about the taxes. At April my work time was reduced (and the salary with it) for 2 weeks so I changed my tax card. The salary I will get for May will be the way it was befor the reduced time, some extra for April and paid holidays that I want to cash out. After that my work contract will change to houre- based. My current tax card has a very low tax and the salary of May will not fit it, will I be charged lisäprosentti directly from that salary, or at the end of the year if it's needed?

Thank you
It’s good to know that in your tax decision later on you will be asked to pay more or given a refund based on total salaries paid during the year. Updating your tax card during the year will bring withholding closer to the final numbers.

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agroot
Posts: 361
Joined: Sat Dec 22, 2018 5:04 pm

Re: Contracts and taxes

Post by agroot » Thu May 13, 2021 10:42 pm

Tax is reserved at the normal rate until the total annual income exceeds stated number.

They don't care how much your current salary is. Accumulated income in this year is all that matters and you don't need to keep the tax card up-to-date until the limit is about to be reached. So basically you have much more flexibility at the beginning of year but less and less near the end.

FinlandGirl
Posts: 751
Joined: Sat Nov 09, 2019 10:43 am

Re: Contracts and taxes

Post by FinlandGirl » Fri May 14, 2021 12:12 am

agroot wrote:
Thu May 13, 2021 10:42 pm
Accumulated income in this year is all that matters
All that matters is that the tax rates on your tax card are irrelevant when the actual tax is being calculated.

The tax card only sets the prepayment deducted from your salary.

If you paid more prepayment during the year than the actual tax, you will get a refund in the following year.
If you paid less prepayment during the year than the actual tax, you will get a bill for the remaining tax you owe in the following year.


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