Delayed bonus payment from old job after starting new job.
July 11, 2013 | 100,00 EUR | answered by Michael Herrmann
Hello,
I am currently transitioning from one job to another - I will be at my old job until the end of July, and will start my new job at the beginning of August.
My base salary at my old job is approximately 95,000 EUR gross + bonus per year, and at my new job it will be around 170,000 EUR (no bonus). I am in tax class I.
The issue now is that the bonus (approximately 25-30,000 EUR) that has accumulated over the fiscal year (July 2012 - June 2013) will only be paid out in October. This means that either the old or the new employer will need another income tax card or certificate from the tax office.
The question now is whether this delayed payment will result in any tax disadvantages for me, or if with appropriate declaration (since the entitlement to the bonus has accumulated over the period June 2012-July 2013) any overpaid amounts can possibly be refunded by the tax office?
What would be the procedure in this case? If a tax disadvantage cannot be avoided, would it be better to present the second income tax card with the less favorable tax class to the old employer (who is still paying the bonus) or the new employer (who only pays the base salary) in October / by the end of October?
Dear questioner,
First of all, thank you for your inquiry, which I would like to answer based on the information provided and in the context of your situation as part of an initial consultation. The response is based on the facts presented. Missing or incorrect information about the actual circumstances may affect the legal outcome.
The bonus payment is to be taxed as regular employment income in the end result. There is no reduction because the reference period does not exceed 12 months and the bonus does not exceed the regular salary payments of the previous year. The change of workplace does not affect the taxation of the bonus payment.
The situation is different for the income tax deduction. Since you are already employed by another employer at the time of the bonus payment, only taxation under income tax class VI remains. Theoretically, you could also change your tax class for one month. However, this would not result in any benefit in the end and would only be additional effort.
Since you have income under tax class VI during the year, you are required to submit an income tax return anyway. The income is added up in the tax assessment and the relevant income tax is calculated. The income tax already deducted during the year is then credited. Any differences in the income tax deduction are therefore balanced in the tax assessment. The choice of tax class during the year has no effect on the amount of income tax.
The monthly income tax deduction is based on extrapolating the monthly salary to an annual income. Therefore, the income tax, excluding the bonus payment, is generally too low until July and tendentially too high from August onwards.
Therefore, in your specific case, it is not possible for the income tax deduction to match the assessment result. I also do not see any significant advantage in taxing the bonus payment under tax class I, as any potential disadvantage under tax class VI will be offset through the tax return.
I hope that these explanations have given you a sufficient overview of the situation in the context of your situation and this initial consultation, and remain
Yours sincerely,
Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax consultant
