Fifth rule
March 22, 2013 | 50,00 EUR | answered by StB Steffen Becker
Hello and good day,
After my timely termination on 28.02.13, I received the agreed severance payment of 35,000 euros from my employer, along with the February salary, as ordered by the labor court.
Unfortunately, I cannot determine if the amount was calculated and paid out using the fifth rule.
My January + February salary was 2750 euros gross each + 330 euros holiday pay (tax class 1 + church tax, no children in NRW, no tax-free allowance)
+ Severance payment 35,000 euros gross
Unemployed from March.
Question: What is the correct tax calculation according to the fifth rule?
Since I believe that my employer has made the calculation incorrectly, I would like to ask what I can do to ensure that the difference is paid to me still this year and not just in the next income tax return in 2014.
Thank you very much.
Dear inquirer,
Thank you for your inquiry. I will answer this as part of an initial consultation based on the information you provided. Missing or incorrect information can affect the legal outcome.
The salary statement for February 2013 looks as follows with the data you provided:
Salary 2750 €
Holiday pay 330 €
Severance pay 35000 €
= Total gross 38080 € (taxable gross 38080 €, social security gross 3080 €)
minus income tax 11693.58 €, of which for other income (severance pay + holiday pay) 11296 €
minus solidarity surcharge 643.14 €, of which for other income (severance pay + holiday pay) 621.28 €
minus church tax 1052.42 €, of which for other income (severance pay + holiday pay) 1016.64 €
minus health insurance contribution EE 252.56 €, of which for holiday pay 27.06 €
minus pension insurance contribution EE 291.06 €, of which for holiday pay 31.18 €
minus unemployment insurance contribution EE 46.20 €, of which for holiday pay 4.95 €
minus long-term care insurance contribution EE 39.27 €, of which for holiday pay 4.20 €
(severance pay is exempt from social security contributions)
leaves a net amount of 24061.77 €
The following tax amounts result from the severance pay alone (fifth rule):
Income tax 11210 €
Solidarity surcharge 616.55 €
Church tax 1008.90 €
If the severance pay is a genuine compensation according to § 34 (2) No. 2 EStG and not e.g. a back payment of wages that were already due, then it must be settled according to the fifth method (mandatory). The employer should be informed of this.
I hope this information helps.
Best regards,
Steffen Becker
Tax consultant
stb-becker@arcor.de
