Employment calculation
The purchase planner enters the purchase price and the product which needs to be purchased. The tool categorizes the products based on the industry they are produced. The provider wants to buy, for example, potatoes and estimates the purchase price at 3,000 euros.
As you can see in the screenshot, potato cultivation is classified under category 01133 in the industry classification Tol 2008.
(pic)
Statistics Finland publishes information on the ratio of turnover to the number of employees in industries. On the attached link you can see the main industries according to Tol 2008 classification / by book level national staff / turnover ratios.
As you can see in the table, the fields of agriculture, forestry and fisheries, which also includes the cultivation of potatoes, requires a turnover of 56,000 euros per person per year. Person-year means the labour inputs of one full-time employee per year.
As you can see in the table, the fields of agriculture, forestry and fisheries, which also includes the cultivation of potatoes, requires a turnover of 56,000 euros per person per year. Person-year means the labour inputs of one full-time employee per year.
The tool calculates: 5,000 euros (the purchase price) / 56,000 euros (turnover required to achieve one person-year) = 0,09. In the acquisition will involve 0.09 person-months, i.e., one person for about a month.
Calculating the effect of payroll tax on income
Employment as a result of the acquisition is 0.09 person-years.
According to Statistics Finland’s salary structure statistics, the monthly salary in agriculture, forestry and fisheries is 3,145 euros.
In order to calculate the payroll income received from an acquisition, the employment received from the acquisition in person-years should be converted to employment in months.
0,09 person-years x 12 months = 1,1 personal work months
Calculation of payroll income from the acquisition:
1,7 personal work months x 3 145 euros = 3 460 euros.
Calculating the impact of payroll tax on income
Let’s assume that the purchase of potatoes is made in Kemijärvi. The impact of the acquisition payroll tax is calculated using the acquisition payroll income and the municipality’s effective income tax rate. The effective income tax rates of the municipalities of Lapland are presented in the pdf file, which can be open at the attached link. (Information about Kemijärvi is old, from 2017, it is found on the website of the Association of Lapland. The Federation of Municipalities publishes information about the effective income tax rates of municipalities, but for some reason Kemijärvi was not included in the list. However, more recent information can probably be found.)
The payroll income from the acquisition is 3460 euros x the effective income tax rate in Kemijärvi is 14,29.
3 460 x 0,1429 = 494 euros