🧮 You can begin calculating salaries once:

1. Initial settings have been reviewed
2. Employee details have been saved
3. The employee’s tax card and applicable deductions have been added to their profile

⚙️ General salary settings

In Settings → Salary settings you can manage the key configurations for salaries. Based on these settings, the system automatically calculates salaries, deductions, and employer contributions. Default settings are provided, but you can also add new types if needed.

From the menu on the left, you can manage different areas of salaries:

• Withholding Taxes and Employer Contributions – Define statutory payments and their percentages
• Leave and Compensation Types – Configure settings for holiday pay, holiday compensation, and absences
• Salary Types – Define the salary types in use, such as salaries, bonuses, and compensations. You can add new pay types or edit existing ones. Only active pay types are available for salary calculation
• Fringe Benefits – Configure how fringe benefits are handled and their related insurance contributions

🔁 Automatic transactions

Go to: Settings → Automatic transactions → Salaries

Make sure the following accounts are configured:

• One-off deductions: 2961
• Fringe benefits contra account: 5990

📊 Withholdings and employer’s contributions

Go to: Settings → Salary settings → Withholdings and employer’s contributions

Check, via the pencil icon at the end of each row, that the correct liability and expense accounts are assigned:

• Health insurance contribution
  • Liabilities account: 2923 Social security liabilities
  • Cost account: 6300 Health insrance contribution
• Earnings-related pension insurance (employer contribution)
  • Liabilities account: 2963 Pension insurance debt
  • Cost account: 6130 Pension insurance payments
• Earnings-related pension insurance (withheld from employee)
  • Liabilities account: 2963 Pension insurance debt
  • Cost account: undefined
• Unemployment insurance (employer contribution)
  • Liabilities account: 2966 Unemployment insurance debts
  • Cost account: 6410 Unemployment insurance payments
• Unemployment insurance (withheld from employee)
  • Liabilities account: 2966 Unemployment insurance debts
  • Cost account: undefined
• Occupational accident and disease insurance
  • Liabilities account: 2967 Accident insurance debts
  • Cost account: 6400 Accident insurance payments

🌴 Holiday and compensation types

Go to: Settings → Salary settings → Holiday and compensation types

Check, via the pencil icon at the end of each row, that the correct expense accounts are assigned:

• Holiday compensation at the end of employment contract (fixed sum) – 5100 Additions and compensations
• Holiday pay (fixed sum) – 5000 Regular salaries
• Pregnancy leave pay (fixed sum) – 5300 Social salaries
• Sick leave pay (fixed sum) – 5300 Social salaries
• Parental leave pay (fixed sum) – 5300 Social salaries
• Holiday compensation (9 % ja 11,5 %) – 5000 Regular salaries
• Saturday leave – No expense account is required. This is used only in connection with monthly salaries when Saturday is to be counted as a vacation day, but the holiday pay is calculated from Monday to Friday.
• Holiday bonus and holiday bonus leave – 5000 Regular salaries
• Unpaid leave – Regular salaries

🚗 Fringe benefits

Go to: Settings → Salary settings → Fringe benefits

Check, via the pencil icon at the end of each row, that the employer contributions are configured correctly according to the handling of fringe benefits:

• Taxable benefits – If the benefit is taxable, all selections under “Applicable withholdings and employer’s contributions” must be enabled.
• Tax-exempt benefits – If the benefit is tax-exempt, none of the selections under “Applicable withholdings and employer’s contributions” should be enabled.

⚠️Special Case: If a benefit (e.g. a commuter benefit) is included in the gross salary, make sure that the necessary contributions are selected under “Applicable withholdings and employer’s contributions.” This ensures the benefit is correctly included in the basis for insurance contributions.

✅ Finally

Once all settings have been reviewed, make sure that:

• The chart of accounts matches the company’s accounting
• Percentages and insurance settings are up to date

This ensures that payroll runs correctly from the very beginning.

⚠️ Important notes

• Always review the settings during implementation
• Update contribution percentages regularly
• Ensure that only the necessary and active pay types are in use

Incorrect settings will affect all salary calculations and statutory reports.

📊Withholdings and employer’s contributions

Under Settings → Salary settings → Withholdings and employer’s contributions you can manage existing information and add new ones by selecting Add new.

When adding a new withholding tax or employer contribution, first enter a name for the payment. Then select the liabilities account, and if necessary, a cost account and the payee. Define the calculation formula (e.g. fixed %) and enter the default rate. If needed, you can restrict the payment to a specific age group and choose whether it applies to the employer. The new payment becomes active once marked as active.

Check the following contributions and their percentages:

• Health insurance contribution
• Earnings-related pension insurance (employer contribution)
• Earnings-related pension insurance (withheld from employee)
• Unemployment insurance (employer contribution)
• Unemployment insurance (withheld from employee)
• Occupational accident and disease insurance

Percentages must be entered according to valid statutory values or those agreed with the insurance company. Accident insurance contributions vary by company and must always be verified from your insurance agreement.

Withholding tax and additional withholding tax are determined based on the employee’s tax card and do not need to be entered here.

⚠️ Important

• Check percentages annually, as they may change
• Ensure all contributions are active before starting salary calculation
• Missing or incorrect percentages directly affect payslips and reports

👤 Adding a new employee

Go to Salaries→ Employees → New employee.

Main details, address and bank details

Enter the employee’s basic details first: name, job title, occupation code and personal identity number. Address and bank details are essential for salary payments. In additional details you can also add date of birth and email address.

Employment data

This section defines the key details related to employee’s employment, working hours, and annual leave.

Start of contract is the start date of the employment relationship. This information is mandatory and affects, among other things, salary calculation and the accrual of annual leave.

End of contract can be entered if applicable. This field should be left empty if the employment is valid until further notice (permanent).

YEL entrepreneur is selected if the employee is covered by the Self-Employed Persons’ Pension Insurance (YEL). This is not selected for regular employees.

Working time (%) indicates the employee’s working hours in relation to full-time work. For example, 100 means full-time and 50 means part-time.

Workday length refers to the duration of a normal working day in hours. This information is used, for example, in calculating leave days and absences.

Earns holidays determines whether the employee earns annual leave. When this option is active, fields related to leave entitlement become available. When enabled, the system accrues either 2 or 2.5 days of leave per month, depending on the length of the employment. The system does not apply the 35-hour or 14-day rule.

Holiday entitlement (first year) defines how many leave days the employee accrues per month during the first year of employment.

Holiday entitlement (after the first year) defines the accrual of leave days once the employment has continued for over one year.

Initial holiday balances

If the employee is added to the system during an ongoing employment, the Initial holiday balances section is used to define the employee’s previously accrued and used leave days. If the employee is new and has not accrued any leave yet, this section does not need to be filled in.

The As of field specifies the date up to which the leave balances have been calculated. This information is important so that the system can continue accruing leave correctly from that point onward.

In the Add holiday balance for another year section, you can enter holiday data for each holiday year separately. A holiday year refers to the year in which the leave is taken. For example, if leave has accrued during the period 1 April 2025 – 31 March 2026 and the holiday is taken in 2026, the holiday year is marked as 2026. The details for each holiday year must be entered separately.

• Holiday year – The year to which the data applies
• Holidays earned – The number of earned holiday days
• Holidays used – The number of holiday days taken
• Unused – The system automatically calculates the difference between earned and used holiday days

The data should be entered as accurately as possible based on the previous system or accounting records to ensure that holiday tracking continues correctly in SimplBooks.

✅ Final step

Finally, make sure that all required information has been entered, such as the personal identity number and occupation code, which are needed for income register reporting.

Also ensure that all information corresponds to the employee’s employment contract and applicable collective agreement.

📄Tax card

You can add a new tax card for an employee by selecting the desired employee under Salaries → Employees and clicking Add New Tax Card. Choose the type of tax card and enter the validity period in the fields Valid from and Valid until.

Then enter the details according to the tax card:

• Basic tax percentage
• Additional tax percentage
• Income ceiling

If necessary, also enter salaries previously paid with tax card if it has been in use before SimplBooks.

💰Salary details

You can add a salary for an employee by selecting the desired employee under Salaries → Employees and clicking Add New Salary.

Select the salary type and salary period (e.g. monthly pay). Enter the gross sum, which serves as the basis for salary calculation.

Define the validity period for the salary:

• Valid since (mandatory)
• Valid until (if applicable)

The salary information is used automatically in salary calculations.

💶 Salary types

Under Settings → Salary Settings → Salary Types, you can manage the salary types used in payroll. Salary types define what components an employee’s salary consists of (e.g. base salary, bonuses, and allowances).

You can add a new salary type by selecting Add New Salary Type. When adding new salary types, make sure to also assign the correct income type code for income register reporting.

➕ Adding a new salary type

Select Add New Salary Type. Enter a name for the salary type and choose the cost account to which the salary will be recorded. If necessary, define the salary income type and ensure that the Active option is enabled so the salary type can be used in payroll. You can optionally include the pay type in average salary calculations. Also select which withholdings and employer’s contributions apply to the salary type. The selected contributions determine which deductions and employer costs are calculated from the salary.

📅 Calendar

Using the calendar is an essential part of payroll. The calendar is used to manage events related to employees’ absences. It provides an overview of each employee’s situation at a glance, such as vacations, sick leave, and other events.

You can add events such as sick leave, annual leave, parental leave, and other salary-affecting entries to the calendar. Events are added directly to the selected date for each employee.

You can add a new event by going to Salaries → Calendar and selecting + Add Event. Choose the employee and define the event period by setting the Start and End dates.

Select the event type, which determines how the event affects salaries (e.g. holiday pay, sick leave pay, or other compensation). You can also add a notation, which does not affect salary calculations.

Events recorded in the calendar are automatically transferred to salary calculations according to the selected event type. This ensures, for example, that sick leave pay or holiday pay is correctly included without separate manual entry in the payslip.

⚠️ Important before starting salary calculation

Always check before calculating salaries that:

• Sick leave is recorded only on working days. If sick leave is entered for example on a weekend, the system will also calculate sick leave pay for weekend days.
• All calendar entries (e.g. vacations and absences) are correct
• The employee’s tax card details are up to date
• Employee-specific employer contributions and insurance details are correctly defined

Missing or incorrect information directly affects payslips and reports.

🧾 New salary

Salary calculation is done under Salaries → Salaries → New salary. A payslip is created for one or more employees for the selected salary period. If a monthly salary, for example, has been added to the employee card, the system will automatically bring the salary into the salary calculation.

Select the employee and review basic information such as the salary period, payment date, and calculation date.

Add new lines by selecting a name of salary type (e.g. salary, hourly wage, or allowances). If necessary, enter the quantity and unit value – the system will calculate the total automatically. You can add multiple rows for different salary types.

In the Withholdings and Employer’s Contributions section, you can see the deductions and employer costs generated from the salary. These are calculated automatically based on system settings and employee data.

⚠️ Important

• Salary types determine how salary and compensations are processed
• Deductions and employer contributions are generated automatically – do not modify them without a valid reason
• Ensure that the salary period and dates are correct
• Finally, carefully review all information

🌴 Leave and balance adjustments

In salaries, holidays are managed through the calendar and holiday settings. The system automatically calculates leave accrual based on employee data.

😎 Different types of leave

The system supports several types of leave:

• Annual leave – Accrues automatically based on employment and decreases according to taken leave.
• Holiday compensation – Paid when employment ends or when leave is not taken.
• Holiday bonus – Paid according to separately defined rules.
• Unpaid leave – Does not accrue leave and reduces salary costs.
• Parental leave and sick leave – Affect holiday accrual according to system settings.

Leave is primarily added via the calendar, from which it is automatically transferred to salary calculations.

🔄 Holiday day balance adjustments

Holiday day balances can be corrected if necessary, for example during system setup or in case of errors.

Corrections are made by entering the correct values under: Employee → Initial holiday Balances

Enter the following information for each holiday year:

• Earned leave days
• Used leave days

The system automatically calculates the remaining balance.

⚠️ Important

• Enter initial holiday balances only once during system setup
• Make corrections carefully to ensure accurate holiday tracking
• Leave entries recorded in the calendar directly affect payslips
• Ensure that the employee’s holiday accrual settings are correct

💳 Paying salaries from the system

If you want to pay a salary from the system, go to Salaries → Salaries and select the desired payslip. Then choose Pay salary using Aiia from the Actions menu on the right.

If you want to pay salaries for multiple employees at once, go to Salaries → Salaries, select the desired payslips, and then choose Bulk actions → Pay Salaries using Aiia. Multiple employee salaries can be paid at once if the bank supports sending multiple payments in the same way as purchase invoices.

🪙 Paying employer contributions from the system

If you want to pay employer contributions for a single employee, go to Salaries → Salaries and select the employee whose withholding tax and health insurance contributions you want to pay. Then choose Pay Taxes using Aiia from the Actions menu on the right.

If you want to pay employer contributions for multiple employees at once, go to Salaries → Salaries and select all employees whose withholding taxes and health insurance contributions should be included in the payment. Then choose Bulk actions → Pay Taxes using Aiia. Employer contributions can be sent to the bank in one batch, as they are always combined into a single payment, even if they include contributions from multiple payslips.

✏️ Marking salaries or employer contributions as paid manually

If a salary or employer contributions have been paid outside the system, they must be manually marked as paid in payroll. This can be done in two ways:

1. Under Salaries → Payouts → New Payout → Salary / Taxes
2. Under Salaries → Salaries, by selecting the desired payslip. Then choose Mark Salary as Paid / Mark Taxes as Paid from the Actions menu on the right

🔎 Viewing payments

Under Salaries → Payouts, you can view payments related to payroll and their status, for example whether a payment has been allocated.

In the list, you can see all payment transactions, their date, sum, status, and additional details such as which payslip or tax payment they relate to. The Bound status indicates that the payment has been matched to the correct salary or liability.

Payments can also be searched and filtered using the search field. In the additional details, you can see more specifically what the payment relates to, such as salaries or taxes.

⚠️ Important

• Ensure that all salaries and taxes have been paid and allocated correctly
• Unallocated payments may cause errors in accounting
• Always check payment details before reporting

📊 Salary reports and reporting to the Income register

After salaries have been processed, salary data can be reviewed in different reports and submitted to the Income Register.

📋 Salary reports

All salary reports, except Income Register reports, can be found under Reports → Worktime report or Holiday days report. Income Register reports are available separately under Salaries → Reports.

From the reports, you can review for example:

• Salaries paid by employee
• Withholding taxes and other deductions
• Employer contributions
• Leave and absences

Reports can be used for payroll verification, accounting support, and preparing official submissions.

📤 Reporting to the Income register

If you want to send Income Register reports directly from the system, first activate the Income Register integration under Settings → Integrations → Vero API.

Once the integration is activated, you can submit reports after payroll processing via Salaries → Reports → New Report. Then select whether you want to send a earnings payment report or an employer’s separate report.

Before submitting reports, make sure that

• Payslips have been reviewed
• All salaries and deductions are correct
• Employee details, such as tax card and insurance information, are up to date

⚠️ Important

• The earnings payment report and the employer’s separate report must be submitted within the deadline after the salary payment.
• Incorrect information must be corrected and resubmitted to the Income Register.
• Checking reports before submission helps reduce errors.