Construction firms – typical customers of the Supervisory Department

According to the customer classification made by the Grey Economy Information Unit of the Tax Administration, every fourth case of supervision relates to insurance unclarities in construction firms that operate in Uusimaa. The following most common employer groups operate in trade and the hotel and restaurant business.

 

According to the customer classification of the Grey Economy Information Unit, the targets of earnings-related pension insurance supervision have not changed much in recent years. As noticed also by the Supervisory Department of the Finnish Centre for Pensions, shortcomings in taking out pension insurance can be found in all lines of business. In some cases, it is a conscious neglect of the insurance obligation while in others, it’s a question of unintentional mistakes.

The largest employer group (25%) caught through supervision are construction firms that operate in Uusimaa, have an annual wage bill of 100-500 thousand euros and have been in business for more than five years. The following most common employer groups operate in trade and the hotel and restaurant business. The top three groups have remained the same for the last two years.

Often also tax debts

Employers who have shortcomings in pension insurance matters very often also have tax debts. In the last two years, nearly half of them had tax debts, although the percentual share had decreased to 32 per cent in 2016.

The data stems from the customer classification that the Grey Economy Information Unit does to support the planning and targeting of authority operations. The Unit made an equivalent classification for the Finnish Centre for Pensions in 2014 and 2015.

Key figures for customer classification

 

 

Supervised in 2014 Supervised in 2015 Supervised in 2016
Number of companies 1,615 1,379 2,061
Registered 74.9% 77.7% 83.8%
Field
Construction 30.7% 26.5% 25%
Trade 12.8% 12.3% 14%
Hotel and restaurant 7.9% 9.9% 6.9%
Company form
Limited companies 81.2% 79.8% 80.2%
Employees
Less than 10 employees 38.6% 37.6%
10 – 49 employees 28.9% 44.2%
Annual gross wages
€15 – 100 thousand 26,5 % 24,6 % 19,3 %
€100 – 500 thousand 33.5% 36.3% 45.9%
Turnover
€100 – 400 thousand 22.6% 25.7% 22.9%
€400 thousand – 2 million 28% 33% 24.6% (€ 400 thousand – 1 million)
Tax debt 47.6% 47.7% 32.3%
Bankruptcy and reorganisation 18.6% 11.7% 9%