Unemployment funds receive the tax information stated on the salary tax cards that enter into force in February directly from the Tax Administration. If we use a salary tax card for withholding tax on your earnings-related unemployment allowance, the tax rate is always at least 25%, even if the tax rate stated on your tax card was lower.
We recommend that you give us a revised tax card that is meant specifically for the payment of benefits. This way, we will apply the tax rate indicated on the tax card. This will also ensure that the tax rate is appropriate for your earnings-related allowance. If you do not mind being taxed at a higher rate, you can always use your salary tax card.
When ordering a revised tax card, enter “KOKO-kassa” as the payer of your benefit. The Tax Administration will then send your tax card directly to us in two business days. For more detailed instructions on how to get a revised tax card, please visit the Tax Administration’s website.
For allowances paid in January, we apply your tax rate from the previous year, unless you send us a separate tax card for January. The accumulated income on the tax card is reset at the turn of the year.
The unemployment fund’s payment system will withhold the tax according to the tax rate known at the time of processing your application. If you submit your application for the payment of December’s daily allowance in January and the allowance is paid in January, we will apply the tax rate that is in force in January.
More information about the taxation of earnings-related daily allowance can be found here.
Instructions on the Tax Administration’s website: How to request a tax card for wage or benefit income in MyTax