Which deductions should be considered in the payroll statement?
July 6, 2023 | 40,00 EUR | answered by Claudia Köhler
Dear payroll tax advisor,
My name is Emma Köhler and I work as an employee in a medium-sized company. Lately, I have been closely examining my payroll and I have noticed that there are a variety of deductions that are taken into account when calculating my net salary.
Some of the monthly deductions include income tax, solidarity surcharge, church tax, pension insurance, unemployment insurance, health insurance, long-term care insurance, and possibly other deductions such as company pension contributions or asset-building payments.
I am concerned whether all relevant deductions are being correctly accounted for in my payroll and if I might be losing money that is rightfully mine. That's why I would like to ask you as an expert for advice: What deductions should be considered in payroll and how can I ensure that all deductions are calculated correctly, so that my net salary is not diminished by errors in the payroll?
I look forward to your professional advice and thank you in advance for your help.
Best regards,
Emma Köhler
Dear Mrs. Köhler,
Thank you for your inquiry and your interest in a detailed examination of your payroll. It is understandable that you are concerned about the deductions taken into account when calculating your net salary. The correct calculation of these deductions is of great importance for your monthly income. Therefore, I would be happy to explain to you which deductions should be considered in the payroll and how you can ensure that all deductions are calculated correctly.
The deductions usually considered in the payroll include income tax, solidarity surcharge, and potentially church tax. These deductions are calculated based on your gross salary and are directly withheld by your employer and paid to the tax office. In addition, contributions to pension insurance, unemployment insurance, health insurance, and long-term care insurance are deducted from your salary. These contributions are meant to ensure your social security in case of illness, unemployment, or old age.
Depending on your individual situation, there may be additional deductions considered in the payroll, such as employer contributions or company pensions. These additional deductions depend on the agreements with your employer and must also be correctly reported in the payroll.
To ensure that all deductions are calculated correctly, it is advisable to regularly review your payroll. Compare the deductions withheld with the agreed contract terms and check if all relevant deductions have been taken into account. If you notice any discrepancies, I recommend contacting your employer or tax advisor promptly to clarify and correct any errors.
Furthermore, you may also consider having an experienced tax advisor review your payroll to make sure that all deductions have been correctly calculated and that you are not missing out on any money that is rightfully yours.
I hope this information is helpful to you and I am available for any further questions you may have. Thank you for your trust and attention.
Best regards,
Claudia Köhler
