Gross-Net problem with increasing working hours and others
February 8, 2014 | 50,00 EUR | answered by Dipl.-Kfm. Frank-Olaf Illiges
I am an entrepreneur and employ a secretary for 22 hours per week. Due to successful business performance, we both want to increase her weekly working hours to 29.5. However, she is currently in the most unfavorable gross/net situation possible, being in tax class V without any tax-free allowances. Proportionally, she would earn less net income after the increase in working hours.
Regarding the above, I have the following questions:
- Are there any other components of salary, special allowances, or benefits that could be provided to her instead, and if so, in what amount?
- In addition to the above point, I am considering implementing a bonus scheme, such as a certain amount for each successful assignment. How would this be treated for tax purposes? Would it be a normal addition to the gross salary or taxed differently?
- Is it possible to create a second employment relationship on a €400 basis with me, meaning within the same company, where she would continue her current duties as a secretary on weekdays and perform other unrelated tasks on weekends?
Thank you for your assistance.
Dear inquirer,
Thank you for your inquiry, which I will gladly answer taking into account your contribution and the rules of this platform.
Please note that my explanation is based on the facts presented, and that adding, omitting, changing information or the ambiguity of information can change the tax result. Please note that this individual comprehensive advice cannot replace.
The bonus increases the gross salary of your secretary like a regular salary increase and is therefore subject to income tax and social security contributions (§ 19 Abs. 1 Income Tax Act (EStG)).
However, you can additionally employ your secretary in your company as a 450-EURO employee ("mini-job") (§ 40 Abs. 4 Nr. 2 EStG). For the mini-job, there must be a second employment contract that is economically viable and also implemented. Furthermore, the mini-job must involve a different type of activity as much as possible (e.g. secretary in main job, saleswoman in mini-job). (FG Münster, 21.02.03, 11 K 1158/01 L, EFG 03, 864; see also BFH, 07.11.06, VI R 81/02, BFH/NV 07, 426).
Finally, you can provide your secretary with the following subsidies tax-free:
1. Travel cost subsidy
You can take over the income tax on subsidies for travel costs between your secretary's residence and workplace within the commuter allowance of 0.30 EUR per kilometer at a flat rate of 15%. The travel cost subsidy for your secretary is then tax-free and exempt from social security contributions.
2. Child subsidy
Subsidies to the normal salary for the accommodation and care of non-school-age children in daycare centers or with childminders are tax-free and exempt from social security contributions (§ 3 No. 33 EStG).
3. Vouchers
Donations in the form of vouchers from other companies remain tax-free up to a value of 44 EUR per month (exemption limit), provided that cash payment is excluded (§ 8 Abs. 2 Sentence 11 EStG). For more expensive non-cash benefits, you can take over the income tax at a flat rate of 30% (§ 37b EstG).
4. Operational health promotion
Employer contributions for measures for operational health promotion (e.g. health-conscious nutrition, stress management) are tax-free and exempt from social security contributions up to 500.00 EUR per employee and year (§ 3 No. 34 EStG).
5. Employee discounts
If your employees receive discounted goods or services from you that you produce for the general market, this employee discount remains tax-free and exempt from social security contributions up to 1,080 EUR per employee and year (exemption limit) (§ 8 Abs. 3 Sentence 2 EStG).
Best regards,
Dipl.-Kfm. Frank-Olaf Illiges
Tax consultant
Am Wieksbach 55
33378 Rheda-Wiedenbrück
Phone: 05242/4055666
Fax: 05242/4055677
e-mail: office@illiges-steuerberatung.de
Website: www.illiges-steuerberatung.de
