What does a legally secure payroll look like?
November 21, 2022 | 40,00 EUR | answered by Elvira Klinger
Dear tax consultant,
my name is Franceska Widmann and I work as the managing director of a medium-sized company. Lately, I have been experiencing increasing difficulties with the payroll of my employees and I am unsure if it is legally compliant.
So far, I have been handling the payroll internally, but I have concerns that mistakes may have been made that could lead to legal consequences. It is very important to me as an employer to comply with all legal regulations and provide my employees with accurate payroll.
My concerns mainly revolve around the correct calculation of social security contributions, the consideration of special payments such as holiday and Christmas bonuses, as well as the payment of income taxes. I fear that errors may have occurred that could harm me and my company.
Therefore, my question to you is: What does a legally compliant payroll look like and what should I, as an employer, pay special attention to in order to avoid mistakes? Are there specific legal requirements or guidelines that I need to follow? What tools or software can help me ensure accurate payroll?
I would greatly appreciate it if you could provide me with specific advice and tips on how to make my payroll legally compliant in order to minimize potential legal risks.
Thank you in advance for your support.
Best regards,
Franceska Widmann
Dear Mrs. Widmann,
Thank you for your inquiry regarding legally compliant payroll for your company. It is understandable that as a managing director, you want to ensure the correct payment of your employees to avoid any legal consequences.
A legally compliant payroll includes various aspects that need to be considered. Firstly, it is important that as an employer, you comply with all legal provisions and requirements. This includes the correct calculation of social security contributions, consideration of special payments such as holiday and Christmas bonuses, and the deduction of income taxes.
To avoid errors, you should stay informed about current legal regulations and regularly check if your payroll complies with them. It may be helpful to seek advice from an experienced tax advisor who can assist you in creating and reviewing your payroll. A tax advisor can also help you correct any past errors and minimize potential legal risks.
Furthermore, there are special tools and software solutions that can help you create accurate payroll. These programs can perform automated calculations and ensure compliance with all legal requirements. It is advisable to research different software solutions and choose one that fits the requirements of your company.
Overall, it is important that as an employer, you stay up to date with the latest legal regulations in the field of payroll and ensure that your calculations are correct and legally compliant. By working with an experienced tax advisor and using suitable tools, you can help minimize potential legal risks and ensure the correct payment of your employees.
I hope that these suggestions and tips are helpful to you and I am available for any further questions.
Best regards,
Elvira Klinger
