In the case of employees, income tax is levied by deducting wages (income tax). The taxation procedure is generally completed with the tax deduction, unless the employer has to carry out an annual wage tax adjustment or the employee may still be assessed for income tax after the end of the calendar year.
In the case of employees, income tax is levied as a deduction from wages (income tax). The taxation procedure is generally completed with the monthly tax deduction, unless the employer has to carry out an annual wage tax adjustment or the employee can still be assessed for income tax after the end of the calendar year.
The income tax is only a special form of collection of the income tax, so no tax of its own kind. The legal basis is the Income Tax Act. In addition to the wage tax regulations of the Act, the wage tax implementation ordinance has been issued. It contains additional legislation on income tax deduction. In addition, wage tax guidelines have been issued to clarify questions of doubt and interpretation arising from the statutory provisions. The income tax calculator is the best solution for finding out the right amount of tax online.
The employer must withhold wage tax on every wage payment, regardless of whether the employee is assessed for income tax or not. In order to be able to withhold wage tax in the correct amount for each employee, the employer needs some information about his employees, e.g. the tax class, any allowances to be taken into account and the possible membership of a religious community for which church tax is to be levied. These wage tax deduction features have been electronically made available to the employer by the tax authorities since 2013. They replace as so-called.
Electronic wage tax deduction features:
The last wage tax card issued for 2010. It is not necessary for the employee to register with the tax office before taking up employment or to submit an application for the formation of the wage tax deduction criteria.
- The electronic wage tax deduction features are created by the tax authorities on the basis of the data stored by the registration authorities. If different or other wage tax deduction features are to be taken into account in the wage tax deduction, e.g. business expenses as an allowance to be taken into account, a corresponding application must be submitted to the tax office.
- The employer may only call up the electronic wage tax deduction features from the tax authorities if the employee grants him authorization to do so. To do this, he must provide his employer with his date of birth and tax identification number once at the start of a new job and inform him whether this is the first or a further employment relationship.
With the help of this information, the employer can register the employee with the tax authorities and electronically call up the wage tax deduction criteria required for the wage tax deduction. If the employment relationship existed before 2013, the employer usually already had the information required for retrieval.