The turn of the year is upon us and, as is the case every year, some changes and adjustments need to be made in the area of salaries. We briefly present the most important topics.
- The general minimum wage increases from EUR 9.19 to EUR 9.35.
- Additional job tickets or employer contributions to the costs of travelling between home and the first place of work by public transport can continue to be tax-free, taking into account the commuting allowance.
- In future, there will also be options for a flat-rate taxed deferred compensation or reimbursement without offsetting against the commuting allowance.
- According to the legislator, earmarked vouchers and cash cards will only be tax-free in future if they are issued in addition to wages. From 1 January 2020, deferred compensation will no longer be tax-free.
- General vouchers or rechargeable cards that can be redeemed with many contractual partners are also to become taxable cash wages. According to the tax authorities, only so-called closed-loop cards or controlled-loop cards or vouchers are to remain tax-free, e.g. centre vouchers, city cards, Shell cards, etc. Proceedings are still pending here.
- Retail trade is also to be promoted here. Pure internet trade is excluded from the 44 euro limit, as there is no physical business premises in Germany.
- The tax-free subsequent reimbursement of costs up to EUR 44 by means of submitted receipts is no longer possible from 2020!
- Electric company cars will continue to be subsidised for tax purposes. Private use is reduced by 50% compared to conventional cars purchased from 1 January 2019.
- For purely electric vehicles with a gross list price of less than 40,000 euros, private use is even reduced to 25%! The subsidy for electric mobility will be extended until 31 December 2030.
- The per diems for meals will increase from 12.00 euros / 24.00 euros to 14.00 euros / 28.00 euros The non-cash benefits for meals will increase from 1.77 euros / 3.30 euros to 1.80 euros / 3.40 euros.
- The reductions for meals will change accordingly to 5.60 euros / 11.20 euros.
- Unemployment insurance contributions will fall by 0.1% to 2.4%.
If you have any questions in this regard or about income tax and social security law in general, Ms Marion Lutz, tax specialist and accountant, will be happy to assist you.