Which special payments must be included in the payroll?
September 6, 2022 | 30,00 EUR | answered by Claudia Köhler
Dear tax consultant,
I am Sven Richter and I work in a medium-sized company that regularly makes special payments to its employees. In the past, there have been uncertainties about which special payments exactly must be included in the payroll and which should not. This uncertainty not only causes confusion for me, but also for my colleagues, leading to dissatisfaction.
Currently, as employees, we receive holiday pay, Christmas bonuses, and bonus payments in addition to our monthly salary. However, we are not sure if these special payments are correctly accounted for in the payroll. It would be very helpful if you could clarify for us which special payments actually need to be included in the payroll and which do not.
My concern is that there may be errors in the payroll that could lead to discrepancies and problems. Therefore, it would be important for us as employees and also for the company to have clarity on which special payments need to be considered.
Could you please explain to us in detail which special payments need to be included in the payroll and how they should be accurately recorded? Are there any legal requirements or guidelines that we need to follow? We would greatly appreciate concrete examples and tips for correct accounting in order to avoid future uncertainties and problems.
Thank you in advance for your support and advice!
Best regards,
Sven Richter
Dear Mr. Richter,
Thank you for your inquiry regarding special payments in the payroll. It is understandable that uncertainties and doubts in the calculation of special payments can lead to confusion and dissatisfaction among employees. I would be happy to explain to you in detail which special payments must be included in the payroll and how they should be correctly recorded.
In general, special payments include not only the monthly salary but also vacation pay, Christmas bonus, and bonus payments. These payments are in addition to the regular salary and have a special status in the payroll. However, not all special payments need to be fully taxed. There are legal regulations and guidelines that determine which special payments are subject to tax and social security contributions and which are not.
Vacation pay and Christmas bonus usually fall under the category of special payments that are subject to tax and social security contributions. They are treated like regular salary and are subject to the same tax and social security regulations. This means that these payments must be included in the payroll and taxed accordingly.
Bonus payments, on the other hand, can be treated differently depending on the type and purpose. If it is a one-time bonus, for example, tied to specific performance goals, it is usually treated as subject to tax and social security contributions. However, if it is a voluntary bonus that is not tied to specific conditions, it may be tax-free under certain circumstances. It is important to examine the exact circumstances and conditions of the bonus payment to ensure correct calculation.
It is advisable to consult with an experienced tax advisor to ensure that special payments are correctly included in the payroll. A tax advisor can help you avoid potential errors and ensure compliance with all legal requirements and guidelines.
I hope this information helps you and provides clarity on the calculation of special payments in your company. If you have any further questions or need assistance, I am happy to help.
Best regards,
Claudia Köhler
