Which payroll taxes do I have to consider as an employer?
June 30, 2022 | 40,00 EUR | answered by Elvira Klinger
Dear tax consultant,
My name is Mia Wunderlich and I am the managing director of a medium-sized company. Lately, I have been increasingly dealing with the topic of payroll accounting and have realized that I do not fully understand all aspects yet.
Currently, we calculate the wages of our employees correctly, but I am unsure about which employer side costs I need to consider. I am worried that I might overlook certain costs or miscalculate them, which could have negative long-term effects on my company.
Therefore, I would like to know from you which employer side costs I absolutely need to consider. What social security contributions, taxes, or other levies are in addition to the gross salary? Are there any specific regulations or requirements that I should be aware of?
I would be very grateful if you could provide me with a detailed overview of the relevant employer side costs and show me possible solutions on how to optimally integrate these costs into my payroll accounting.
Thank you in advance for your support.
Best regards,
Mia Wunderlich
Dear Mrs. Wunderlich,
Thank you for your inquiry regarding payroll ancillary costs in the payroll statement. It is commendable that you are delving into this topic extensively and want to ensure that you consider all relevant cost factors. An accurate calculation of ancillary payroll costs is essential to avoid long-term negative impacts on your company.
As an employer, you are required to bear various ancillary costs in addition to the gross salary of your employees. The key cost factors in the payroll statement are social security contributions, taxes, and other levies. These include:
1. Social security contributions: As an employer, you are required to pay contributions to statutory health, pension, unemployment, and long-term care insurance. These contributions are shared by both the employee and the employer and are based on the employee's gross salary.
2. Taxes: In addition to social security contributions, you must also withhold and remit income tax and solidarity surcharge to the tax office as an employer. The amount of income tax depends on the employee's tax class and salary.
3. Other levies: Depending on the industry and collective agreement, additional levies such as contributions to the professional association, company pension scheme, or insolvency levy may also apply.
To optimally integrate ancillary payroll costs into your payroll statement, I recommend using a professional payroll software that automatically considers all relevant cost factors and simplifies the calculation. Additionally, you should regularly review the current legal regulations and rules in the field of payroll to ensure that you are always calculating correctly.
I hope this information is helpful to you and I am available for further questions. Thank you for your interest in this important topic and for trusting my expertise.
Best regards,
Elvira Klinger, Tax Advisor
