How does the billing of short-time work function?
March 29, 2024 | 30,00 EUR | answered by Günther Tiefental
Dear tax consultant,
My name is Ammelie Ehrenbreit and I work as a HR specialist in a medium-sized company. Due to the current economic situation, we unfortunately have to introduce short-time work to avoid layoffs. I am now faced with the challenge of correctly processing the short-time work payroll, as this is a new situation for all parties involved.
So far, our company has not had any experience with short-time work and I am unsure of how exactly the payroll works. What steps do I need to take to correctly process the short-time work? Are there any specific forms that I need to fill out? How does short-time work affect the employees' payroll and what impact does this have on social security contributions?
I am concerned that I might make mistakes in the payroll and that this could lead to legal consequences for our company. Therefore, it would be very helpful if you could explain to me in detail how the short-time work payroll works and what specific details need to be considered. Are there any potential pitfalls that I should pay particular attention to?
Thank you in advance for your support and expertise in this area. I look forward to hearing back from you and gaining more clarity on this matter.
Sincerely,
Ammelie Ehrenbreit
Dear Mrs. Ehrenbreit,
Thank you for your inquiry regarding the calculation of short-time work in your company. You are absolutely right that the introduction of short-time work poses a new and challenging situation for all parties involved. It is important that the calculation is done correctly and legally secure to avoid possible legal consequences.
First and foremost, it is important to understand that short-time work is a measure to preserve jobs in economically difficult times. During short-time work, the employer reduces the working hours of employees and the Federal Employment Agency compensates for a part of the resulting loss of earnings. The calculation of short-time work is usually done through the short-time work allowance, which is paid by the Federal Employment Agency to the employer.
To correctly calculate short-time work, the following steps must be taken:
1. Notification of short-time work to the relevant Employment Agency: The employer must notify and get approval for short-time work from the Employment Agency in advance. There are specific forms that need to be filled out. After approval of the short-time work by the Employment Agency, the calculation can begin.
2. Recording of working hours: The employer must record the actual working hours and the reduced working hours of the employees. This data is needed for the calculation of the short-time work allowance.
3. Calculation of the short-time work allowance: The short-time work allowance is calculated by the Federal Employment Agency based on the loss of earnings. It usually amounts to 60% (for employees without children) or 67% (for employees with children) of the lost net wages.
4. Calculation and payment: The short-time work allowance is paid to the employees along with the remaining salary. It is important to document the calculation correctly and ensure that all legal requirements are met.
In terms of social security contributions, short-time work affects as follows: Social security contributions continue to be calculated based on the employee's normal gross salary. The short-time work allowance itself is exempt from social security contributions.
There are some pitfalls to watch out for when calculating short-time work. These include the correct recording of working hours, timely notification of short-time work to the Employment Agency, and proper documentation of the calculation.
I hope this information helps you and provides you with more clarity regarding the calculation of short-time work. If you have any further questions or need assistance, I am happy to help.
Best regards,
Günther Tiefental
