We will start with the reform of the long-term care insurance and the contributions’ adjustment.
Since May 2023, the “Deutschland-Ticket” (one ticket for public transport in Germany) has been available; we will present the requirements for a tax-subsidized reimbursement of these costs by the employer.
The introduction of the electronic certificate of incapacity for work is another step towards digitalization.
Since October 2022, the inflation compensation bonus and the conditions required for its tax and social security exemption has been a topic of practical relevance.
The earnings limit for so-called mini jobs was adjusted from EUR 450 to EUR 520, which has far-reaching consequences.
The employer’s or the payroll office’s support in the electronic social security audit, which has become mandatory from 2023, requires from all parties involved to know the related obligations.
The amendment of the German Social Code regulates the cancellation of income limits for certain old-age pensioners, the elimination of mandatory contributions to the artists’ social welfare fund (Künstlersozialkasse) in case of only one-time orders, and the presentation of certain lump-sum taxed earnings in the remuneration statement.
Furthermore, the payroll tax calculation scheme for employees with individual working days not subject to taxation in Germany has been amended. Such amendment may result in a significant additional wage tax burden for these employees.
We hope the following pages provide you with some useful information. In case of any questions, please do not hesitate to contact us.
Your Baker Tilly Payroll Team