What information do I need from my employees for payroll processing?
February 18, 2022 | 35,00 EUR | answered by Elvira Klinger
Dear tax consultant,
I am Wanda Lahn and I run a small business with several employees. I have been handling payroll myself so far, but I am feeling overwhelmed with the amount of information I need from my employees. I am wondering what exact information I need from my employees in order to generate a correct payroll.
So far, I have only recorded the basic data of my employees such as name, address, date of birth, and tax class. However, I am unsure if this is sufficient to ensure a correct payroll. I also lack information on potential additional income, tax-free benefits, or special payments such as holiday or Christmas bonuses.
I am concerned that I may be overlooking or misinterpreting important information, which could lead to errors in the payroll. Therefore, I want to make sure that I accurately record and process all relevant information from my employees.
Could you please detail exactly what information I need from my employees for payroll? Are there specific details I should additionally ask for to ensure error-free processing? I want to ensure that I comply with all legal requirements and properly compensate my employees.
Thank you in advance for your assistance.
Sincerely,
Wanda Lahn
Dear Mrs. Lahn,
Thank you for your inquiry regarding the necessary information for the payroll of your employees. It is understandable that you are concerned about the accurate recording and processing of your employees' data, as this is an important task to comply with legal requirements and to properly compensate your employees.
To ensure error-free payroll processing, in addition to basic data such as name, address, date of birth, and tax class, you do indeed need further important information from your employees. Here are some additional details that you should request from your employees:
1. Social security number: This is an important identifier for each employee, needed for processing social security contributions.
2. Tax identification number: This number is assigned by the tax office and is important for correct tax assessment.
3. Bank details: To make salary payments, you need your employees' bank details.
4. Working hours: Record your employees' working hours to accurately calculate overtime, vacation days, and sick leave.
5. Additional income: If your employees have other sources of income, it is important to record them to determine the correct tax class.
6. Tax-free benefits in kind: If you provide your employees with non-cash benefits such as meal vouchers or fuel cards, these also need to be included in the payroll.
7. Special payments: Also record any special payments such as vacation or Christmas bonuses to tax them correctly.
It is important to accurately and completely record all relevant information to avoid errors in the payroll. If you are unsure, I recommend contacting a tax advisor who can assist you with the correct recording and processing of your employees' data.
I hope this information is helpful to you and I am available for any further questions.
Best regards,
Elvira Klinger
