Tax-free surcharges
This is about tax-free surcharges according to §3b EStG (German law). You can use Hypersoft Time Recording to automatically calculate tax-free surcharges.
introductory remarks
In Germany, the law provides for tax-free bonuses for all employees who have to work at special times. As a rule, tax-free surcharges are also free of social security contributions, although there have been some adjustments in recent years - this can easily be taken into account by the payroll office.
If you pay wages in excess of the statutory basic wage and your employees work in periods that are eligible for a supplement, you can give your employees "more net of gross". If the wishes regarding the gross salary can be reduced by this, you as an employer will also save very significantly. It is not unusual to be able to avoid important parts of the wage costs in comparison with/without surcharges between 20% and 30% of the ancillary wage costs.
On the other hand, you can pay higher wages without incurring disproportionately high additional costs and thus gain access to more highly qualified employees. (...) Either way, it is a win-win situation for all parties involved as provided by law. In practice, a mixture of both tactics is usually implemented. The implementation in all variants cannot be described in this document. Please contact a certified specialist trade partner, Hypersoft or your tax and payroll office.
Examples from practice...
A 450,-€ minijob gets 15,-€/h. The employee can work 30 hours and usually you pay the still lump-sum ancillary wage costs to 450,-. Your competitor pays his employee 10,-€/hour. and 50% tax-free surcharges. His employee can work 45 hours a month and receives 675,-€ wage. However, your competitor only pays as much ancillary wage costs as you do. For the same job where you have three minijobs, he only needs two. The employee and your competitors only have advantages, not disadvantages.
Similar examples can be used for all types of employment.
There are a number of legal regulations and limits to the working hours of employees. With Hypersoft, the tax-free surcharges can be automatically applied to the different working times, since the appropriate calculation bases are stored. In the wage type configurator, select Take employee settings into account.
Basically applies:
Working hours between 20:00 and 04:00 are eligible, as are working hours on Sundays and public holidays.
Of the basic wage, tax-free and (conditionally) social security-free...
- For night work from 20:00 to 06:00 25%.
- For night work from 00:00 am to 04:00 am, if night work began before 00:00 am 40%
- For work on Sundays from 00:00 to 24:00 50%.
- For work on public holidays from 00:00 h to 24:00 h as well as for work on 31. December from 14:00 h 125%
- For the work on 24. December from 14:00 o'clock, as well as the work on 25. and 26. December and 1. May from 00:00 h to 24:00 h 150%
Possible combinations...
Tax-free Sunday, public holiday and night surcharges can be combined with each other (but not Sunday and public holiday surcharges). Hypersoft knows all these combination possibilities and applies them. Here are a few examples:
- Night work on Sunday, taken before 00:00 90%
- Night work on Sunday 75%
- Night work for the time between 00:00 am and 04:00 am for Monday, if work started before 00:00 am, on Sunday 90%.
- Night work on public holidays 125% + 25% = 150% or 150% + 25% = 175%.
- Night work on public holidays from 00:00 to 04:00 recorded before 00:00 125% + 40% = 165% or 150% + 40% = 190%
- Night work for work between 00:00 and 04:00 on a day following a public holiday, if the work was started before 00:00 on the public holiday 125% + 40% = 165% or 150% + 40% = 190%.
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