Author: Pia Lösch

For employers as well as for students, a working student contract is an interesting thing. Employers have fewer ancillary wage costs, and students have more net left over from the gross of their salary.

To do everything right from a tax perspective, employers need to pay attention to some important issues.

Since January 01, 2022, the limit for tax-free benefits in kind has been raised from 44 EUR to 50 EUR per month.

The 30% flat-rate tax is not applied if the employer provides non-cash benefits to employees that do not qualify as non-cash benefits subject to payroll tax.

The new year brings a number of changes in wage tax and social security law. What do you have to bear in mind in 2022? We have summarised the relevant changes for you.

• Increase in the minimum wage
• Minimum remuneration for apprentices
• Employer subsidy for deferred compensation
• Reporting of tax identification number for marginally employed
• Insurance status of short-term employees
• Electronic certificate of incapacity for work
• Tax-free remuneration in kind

Hiring mini-jobbers is an interesting way for employers to cushion peak workloads, especially in times of fluctuating orders. Of course, some important organisational and verification obligations must also be observed for marginally employed workers.

Important change in 2022: Notification of the tax identification number and statutory health insurance

From January 2022,

Many employers would like to provide financial assistance to their employees who have been affected by environmental catastrophes. The following payroll tax simplifications apply to support affected individuals:

Affected employees can receive up to EUR 600 per calendar year tax-free from their employer as aid and assistance. If the aid is paid out to affected employees due to an extraordinary emergency situation,

Particularly with regard to personnel recruitment, employers can offer additional, attractive benefits that go beyond mere payment in the form of salary.

With selected salary extras, employees’ pay can be optimized through tax-privileged and social security-free benefits to achieve a higher net payout. Employers can thus reward employees for good work performance,

Every employer can provide its employees with a company bicycle for private use free of charge or at a reduced price. The resulting benefit in money’s worth is then part of the taxable wages.

So-called pedelecs are operated with a max. 250 watt motor and are limited to a speed of 25 km/h.

In order to contain the corona pandemic and reduce social contacts – also in the work environment – the Bundesministerium für Arbeit und Soziales/ German Federal Ministry of Labor and Social Affairs (BMAS) has issued the Corona-Arbeitsschutzverordnung/ Corona Occupational Health and Safety Ordinance (Corona-ArbSchV). This also contains regulations on home office.

The new year brings with it a number of changes in payroll tax and social security law. We have summarized the most relevant changes in 2021 for you here. Here are the most important facts and key data:

• Increase in the general minimum wage
• Elimination of solidarity surcharge
• Electromobility: increase in monthly flat rates for charging
• Increase of the distance allowance
• Mobility bonus as an alternative to the distance allowance
• Increase in relief amount for single parents
• Contribution rates and levy rates in 2021

Due to the current corona crisis, employers can pay their employees aid or support in the form of a corona premium for employees up to a total amount of EUR 1,500 until 31.12.2020, either tax-free and non-contributory in the social security system or as a tax-free payment in kind.

We have summarized all the changes in short-time working and short-time allowance for you. This applies in detail:

• the increase in the short-time working allowance
• the new rules for new mini-jobs during short-time work in the main job
• a summary of the recording obligation for marginally employed and short-term workers

You can find all details here.