Just in time for the turn of the year, numerous changes have been recorded, especially in the areas of income tax, social security and payroll . Whether and what consequences these innovations have for employees will be examined in the following article.
Changes in payroll tax affecting payroll accounting
As early as June 2015, the Bundesrat passed a law to increase the basic allowance, child allowance, child benefit and child allowance.
The basic tax-free allowance has been increased to EUR 8,652 for single persons and to EUR 17,304 for married persons. Up to this amount, the taxpayer’s income is tax-free and leaves it untouched as a subsistence minimum. Thus, this increase has a direct impact on the monthly payroll, as the payroll tax base is now higher. Also good to know, because if the taxpayer (or a jointly assessed couple) falls below the basic tax-free amount with the taxable income, there is initially no obligation to file an income tax return. In 2016, the child allowance will be increased by EUR 96 to EUR 7,248 and child benefit to EUR 190. However, these amounts only have an effect in the context of the income tax return in the course of the favourable assessment. In this case, it should be shown that the crediting of the child allowance results in a higher tax saving than the child benefit received. However, the child benefit received would then have to be paid back.
Changes in social security affecting payroll accounting
From 2016, the (annual) contribution assessment ceilings for social insurance will also increase, with the limits for health and long-term care insurance being uniform throughout Germany and those for pension and unemployment insurance in East and West. Since these are income ceilings, contributions for health, long-term care, pension and unemployment insurance are only subject to contributions up to these amounts, taking into account the annual assessment ceiling. The increase in amounts means a higher burden on the employer as well as on the employee in the monthly payroll, as it increases social security contributions.
The compulsory insurance limit in statutory health insurance is set nationwide. Compared to 2015 (54,900 euros), it will increase to 56,250 euros per year. The nationwide contribution assessment ceiling in statutory health insurance is 50,850 euros per year (2015: 49,500 euros).
The new monthly contribution assessment ceiling in the general pension insurance (West) will increase from 6,050 euros (2015) to 6,200 euros per month. The contribution assessment ceiling (East) will increase from 5,200 euros (2015) to 5,400 euros per month. The following new monthly amounts will apply to the miners’ pension insurance: Contribution assessment ceiling (West): 7,650 euros per month, Contribution assessment ceiling (East): 6,650 euros per month. The provisional average salary in the statutory pension insurance scheme will be set at 36,267 euros per year for 2016.
How do you ensure in the company that the changes at the turn of the year are included in payroll? We look forward to your comments.
Image source: Fotolia.com, Photographer: Coloures-pic
