If your company is ready to expand into Finland, you’ll need to be prepared to handle everything from payroll to legal matters. With a population of 5.5 million, finding the right candidate for your open roles can be difficult. So, once you find them, you must make sure you meet all the country’s laws and regulations related to Finland payroll.
Taxation rules in Finland
When you set up your Finland payroll, you must make sure to follow individual tax laws for employees. Finland operates under a progressive tax scheme between 12.64% and 44%. The country also has a robust social insurance system that includes residence- and work-based benefits such as family benefits, financial aid for students, and health insurance.
Details of social security percentages are as follows:
The employee’s share of the contribution is 7.15% of the wage (for employees under 53 or over 62) or 8.65% (for employees between 53 and 62). The employer withholds the employee’s share of the contribution in connection with paying out the wage.
Finland payroll options for companies
Trying to grow your company in Finland and learn all the country’s employment laws can feel daunting. However, you have a variety of Finland payroll options at your disposal to help you make the most informed decision. Companies can choose between:
- Internal payroll: Gather the necessary resources and assemble an internal team to run payroll from your Finland subsidiary.
- Local Finland payroll processing company: Work with a company in Finland to handle payroll for you. While they’ll manage your Finland payroll, your company will remain liable for any compliance mistakes.
- Partner with a Global Growth Platform™: Choose G-P to support your expansion into Finland. We handle payroll compliantly, so you can focus on the crucial aspects of your business.
How to establish a payroll in Finland
Once you decide on a payroll option in Finland, you’ll need to establish your system. All new employees must provide personal information such as their tax code number, bank account details, and pension details to establish Finland payroll. You’ll also need to register yourself as an employer if you pay wages or salaries to at least 2 employees regularly or at least 6 employees at the same time temporarily. You must withhold taxes on these wages based on your employees’ tax card.
Streamline global payroll management with G-P.
G-P streamlines each step of the payroll management process with our market-leading Global Growth Platform™. Pay your team with confidence anywhere in the world in 150 currencies with our 99% on-time automated payroll system — all with just a few clicks. Our products also integrate with leading HCM solutions, syncing employee payroll data across platforms automatically to create one reliable, convenient source of truth for HR teams.
Contact us to learn more about how we can support you.