What impact does a mini job have on the payroll?
March 10, 2024 | 40,00 EUR | answered by Günther Tiefental
Dear tax advisor,
My name is Gerald Mühlberg and I am currently working full-time as an employee in a company. I have now been given the opportunity to take on an additional mini job to supplement my income. However, I am unsure of the impact this will have on my payroll.
Currently, I earn a fixed salary monthly in my main job. With the mini job, my income would increase as I would be earning additional money there. I am now wondering how the mini job will affect my tax class, social security contributions, and also my tax return.
My concerns mainly lie in not knowing exactly how to correctly process my payroll to avoid making mistakes and having to make tax payments. Additionally, I want to ensure that I comply with all legal requirements and do not have any issues with the tax office or social security.
Could you please explain to me the impact a mini job will have on my payroll and how I can correctly process my payroll to avoid potential problems? Are there any specific regulations or special considerations I need to be aware of when working a mini job alongside my main job?
Thank you in advance for your assistance.
Best regards,
Gerald Mühlberg
Dear Mr. Mühlberg,
Thank you for your question regarding the impact of a mini job on your payroll. As a tax advisor specializing in payroll, I am happy to assist you and provide you with the necessary information to avoid any potential issues.
If you have a mini job in addition to your full-time job, there are a few things to consider. Firstly, your income from the mini job will be taxed in addition to your fixed salary from your main job. The mini job is typically taxed at a flat rate of 30% which is deducted by the employer. This means that as an employee, you usually do not have to pay additional taxes for the mini job.
As for social security contributions, these are also deducted by the employer on a flat rate basis. Mini jobs are subject to special regulations that provide for a reduced contribution amount. As an employee, you are usually not required to pay social security contributions for the mini job.
However, it is important to note that your total income from both your main job and the mini job is taken into account when determining your tax bracket. Depending on the total income, your tax bracket may change, which can have an impact on your income tax and potentially your tax refund.
To ensure that your payroll is processed correctly and to avoid any potential issues, I recommend regularly reviewing your total earnings from both your main job and the mini job and making adjustments if necessary. It is also advisable to communicate with your employer and possibly a tax advisor to ensure compliance with all legal requirements.
In summary, while a mini job alongside your main job can increase your income, there are also some tax and social security aspects to consider. With careful review and possibly professional advice, potential issues can be avoided.
I hope this information has been helpful to you and I am available for any further questions.
Best regards,
Günther Tiefental, Tax Advisor
