How is sick pay processed in the payroll accounting in case of illness?
October 23, 2023 | 35,00 EUR | answered by Claudia Köhler
Dear tax advisor,
My name is Thomas Stamm and I work in a medium-sized company. In the last few months, I have unfortunately had to deal with several cases of illness and have therefore relied on sick pay.
So far, my salary has been continued to be paid to me when I have been absent due to illness. However, I am now wondering how this sick pay is actually calculated in the payroll. How does this affect my payroll and how is it treated for tax purposes?
I am worried that I may have tax disadvantages or that I may not be receiving all the benefits I am entitled to. I want to ensure that everything is correctly calculated and that I do not lose any money that I am entitled to.
Could you please explain to me exactly how sick pay is calculated in the payroll? Are there any specific regulations I need to be aware of to take advantage of tax benefits? Are there any additional benefits that I may be entitled to but have not yet claimed?
I thank you in advance for your help and look forward to your detailed explanation.
Kind regards,
Thomas Stamm
Dear Mr. Stamm,
Thank you for your inquiry regarding sick pay and its calculation in the payroll. As a tax consultant with extensive experience in payroll, I can help you and provide you with all the necessary information.
Sick pay is legally regulated and states that employees who are unable to work due to illness are entitled to continue receiving their salary. This means that your employer is obligated to continue paying your salary for a certain period of time if you are unable to work due to illness. The exact duration of sick pay depends on the terms of the employment contract and legal regulations.
In the payroll, sick pay is usually treated as regular salary. This means that the payment of salary during the period of illness is processed as usual, and the relevant deductions for taxes and social security contributions are taken into account. There is no tax disadvantage or loss of entitlements, as sick pay is treated tax-wise as regular salary.
It is important that your employer correctly reflects sick pay in the payroll and complies with the relevant legal regulations. If you are unsure whether everything has been calculated correctly, I recommend reviewing your payroll carefully and, if necessary, consulting your employer or the HR department.
In addition to sick pay, there may be other benefits that you may be entitled to. These could include contributions to health insurance, company benefits, or tax advantages for certain medical expenses. Therefore, it is worth exploring possible additional benefits and taking advantage of them if applicable.
Lastly, I want to assure you that sick pay in the payroll is calculated correctly and should not result in any tax disadvantages for you. If you have any further questions or need assistance, please do not hesitate to contact me.
Best regards,
Claudia Köhler
