Tax calculation of partial monthly amounts

An employee of your company starts or ends his employment during the current month? If so, this has wage tax implications that need to be taken into account.

In the following article, you will learn when exactly a partial wage payment period arises and what must be taken into account for wage tax purposes.

If an employment relationship begins or ends during a current month, the salary for the pro-rata employment period of the month is calculated for tax purposes according to calendar days. Payroll tax is calculated based on the calendar days the employee is employed using the payroll tax day table.

When exactly does a partial pay period occur?

• Days lost from work without continued payment of wages (for example, unpaid vacation) do not result in a tax break. This means that a partial pay period arises exclusively when an employee is hired during a month or the employment relationship is terminated during a month.

What are the wage tax effects of partial monthly amounts?

• In this case, the wage tax does not follow the social insurance – as partial wage payment periods can also arise in the social insurance – for example, in the case of sick pay, maternity pay or parental pay.

• The employee’s wage tax deduction characteristics apply on the day on which the wage payment period ends. This also applies if the main employer changes during the month.