Payroll tax
[1] By law, some payroll taxes are the responsibility of the employee and others fall on the employer, but almost all economists agree that the true economic incidence of a payroll tax is unaffected by this distinction, and falls largely or entirely on workers in the form of lower wages.
The tax base consists of their worldwide income, including: trade, business, profession, employment, investments and property.
Products with a lower rate value-added tax are for example books, food or cultural events.
Employees are provided with a standard allowance of EUR 132 for any work related expenses.
If the amount paid by employer is lower than the maximum (EUR 300) then the employee has the right to include the difference as an income related expense.
Special expenses: charitable contributions are deductible up to 10% of the current year's taxable income.
Family bonus plus: reduces the calculated tax, annually EUR 2000 per child up to 18 years old, living in Austria.
[5] In Bermuda, payroll tax accounts for over a third of the annual national budget, making it the primary source of government revenue.
The employer is required to contribute an additional 20% of the total payroll value to the Social Security system.
Depending on the company's main activity, the employer must also contribute to federally funded insurance and educational programs.
All these contributions amount to a total tax burden of almost 40% of the payroll for the employer and 15% of the employee's wages.
It is an example of the second type of payroll tax, but unlike in other jurisdictions, it is paid directly by employees rather than employers.
[8] Ontario applies a health premium tax to all payrolls on a sliding scale up to $900 per year.
Taxable Income = Gross Salary – Social Benefits – ¥3,500 IIT = Taxable Income x Tax Rate – Quick Deduction Net Salary = Gross Salary – Social Benefits – IIT In Croatia, the payroll tax is composed of several items: The income tax in the Czech Republic is progressive.
Categories that do not have to pay health and social insurance are, for example, students or people registered at the unemployment department.
Different percentages apply depending on thresholds that are multiples of the social security earnings ceiling (in 2012 = 36,372 euro per year).
[23] Contributions for salaries between the minimum wage and 1.6 times the minimum wage are eligible to relief (known as Fillon relief) of up to 28 percentage points of employer contributions, effectively halving employer non-wage costs.
[24] German employers are obliged to withhold wage tax on a monthly basis.
[25] In addition to income tax withheld, employees and employers in Germany must pay contributions to finance social security benefits.
1.675% in Saxony An employer is obligated to deduct tax at source from an employee and to make additional contributions to social security as in many other EU member states.
[27] In 2018, the Swedish social security contribution paid by the employer is 31.42 percent, calculated on top of the employee's salary.
For the years 2011 and 2012, the employee's contribution had been temporarily reduced to 4.2%, while the employer's portion remained at 6.2%,[38] but Congress allowed the rate to return to 6.2% for the individual in 2013.
[50] Each employer is required to provide each employee an annual report on IRS Form W-2[51] of wages paid and Federal, state and local taxes withheld.
These are due by January 31 and February 28 (March 31 if filed electronically), respectively, following the calendar year in which wages are paid.
[53] Failure to timely and properly pay federal payroll taxes results in an automatic penalty of 2% to 10%.
Failure to properly file monthly or quarterly returns may result in additional penalties.
The penalty of up to 100% of the amount not paid can be assessed against the employer entity as well as any person (such as a corporate officer) having control or custody of the funds from which payment should have been made.
