What impact does short-time work have on payroll?
December 27, 2023 | 30,00 EUR | answered by Claudia Köhler
Dear tax advisor,
My name is Bernd Schneider and I work in a company that had to introduce short-time work due to the current economic situation. As a result, my working hours and therefore my salary are reduced. I am concerned about how this short-time work will affect my payroll.
So far, I have received a fixed salary every month, calculated based on my agreed working hours. However, with short-time work, I will be working less and therefore earning less. I wonder if my salary will be automatically adjusted accordingly or if I need to take action myself to ensure correct billing.
Furthermore, I would like to know if there are possible tax implications when receiving short-time work allowance. Do I have to pay taxes on this money and how will it affect my tax class? I am also interested in whether my social security contributions will change when I am in short-time work.
Could you please explain to me the specific effects short-time work will have on my payroll and what steps I may need to take to ensure that everything is billed correctly? I would greatly appreciate your support and expertise in this matter.
Best regards,
Bernd Schneider
Dear Mr. Schneider,
Thank you for your inquiry regarding the impact of short-time work on your payroll. Indeed, short-time work can lead to changes in your salary statement, and it is important that these are implemented correctly to avoid any potential tax implications.
If you work less and therefore earn less due to short-time work, your salary will be reduced accordingly. In most cases, your employer will automatically adjust the payroll and pay out your reduced salary. However, it is advisable to carefully review your salary statement to ensure that all changes have been implemented correctly.
Short-time work allowance that you receive as part of short-time work is subject to taxation. It will be taxed together with your salary and may therefore affect your tax class. It is important that you declare the short-time work allowance in your next tax return to ensure correct taxation.
As for social security contributions, these are usually adjusted according to the reduced salary. This means that your contributions to social security will also decrease in line with the lower income.
To ensure that your payroll is correct and all changes due to short-time work have been taken into account, I recommend that you contact your employer or the relevant HR department. If you have any doubts or further questions regarding payroll during short-time work, I am happy to assist you.
I hope I could answer your questions comprehensively and am available for further information or support.
Best regards,
Claudia Köhler
