Everything about the income tax certificate
The Payroll Tax Certificate is a central document for employees and employers, which is issued annually and serves as proof of the salary paid and the payroll tax paid. It forms the basis for the income tax return and contains important information on tax deductions and social security contributions. Correct handling of the income tax certificate is essential in order to properly fulfill tax obligations.
What is a payroll tax certificate? — Explained simply
The income tax certificate is issued once a year by the employer and provides information on the salary paid in the calendar year, the payroll taxes paid and the social security contributions paid. Employers transmit this data electronically to the tax office. Employees receive them as a printout or digitally so that they can use them for their documents and tax returns (Section 41b EStG).
What is the significance of the income tax certificate for employees?
The income tax certificate is an important proof of the payroll tax paid and serves as the basis for the income tax return. The data contained therein is required to correctly calculate the taxable income.
Contents of a payroll tax certificate
A payroll tax certificate comprises a wide range of data, which is divided into two main areas: personal information about the employee and details of tax deductions.
The most important details of a payroll tax certificate include:
Name and address
Tax Bracket and Child Allowances
Tax identification number and eTIN
Payroll Tax, Church Tax and Solidarity Surcharge
Gross wage, benefits in kind and other benefits
In individual cases, special numbers such as “S”, “M” or “F” may appear on the payroll tax certificate for additional information, e.g. about tax-free collective transportation or a meal during activities abroad.
When is the income tax certificate issued?
Employers must submit the income tax certificate to the tax office no later than the last day of February of the following year. Employees usually receive the document at the same time. In the event of an early departure from the company, the certificate is issued with the last salary.
What to do if there are errors in the income tax certificate?
Incorrect income tax certificates should be reported to the employer immediately. Since corrections cannot be resubmitted to the tax office, it is at the discretion of the tax authorities to correct the error. However, employees can provide the correct information on their tax return.
Loss of income tax certificate: How to get a replacement
If an income tax certificate is lost, the employee can request it again from the employer. Companies are required to keep these documents for at least ten years so that a replacement can also be requested in later years.
Retention requirements: How long is the income tax certificate important?
Employers must have payroll tax certificates over a period of Ten years archives. Employees should keep these certificates until retirement so that they can prove their pension rights or other social rights if necessary.
Conclusion
The income tax certificate is an essential document that employees receive annually from their employer. It ensures that all tax obligations and social security contributions have been processed correctly and forms the basis for the income tax return. Careful handling of this document is therefore of great importance.