The receipt of short-time work benefits also has an impact on the tax return and the future pension. What workers should know about it.
- Short-time work can save jobs in the corona crisis *.
- More than ten million people in Germany receive short-time work benefits * .
- Those affected should know how this affects their tax and pension.
Short-time work has been increased - what employees need to know
More than ten million people are on short-time work in the corona crisis. An instrument for hundreds of thousands of companies in Germany to get through the crisis - and to avoid layoffs at best. The Bundestag passed a corresponding law on 14 May from Labor Minister Hubertus Heil (SPD). The grand coalition voted in favor, the opposition abstained. In general, there is already 60 percent of the last net wage or 67 percent for people with children as short-time work benefits. Now it should be increased to 70 percent and 77 percent from the fourth month of purchase. From the seventh reference month, it should be 80 percent or 87 percent in the future. This should apply until December 31, 2020 at the latest.
Short-time work has consequences for taxes and pensions
In the Corona crisis, workers are to be protected more from reduced wages for short-time work. Those affected should not forget that receiving short-time work benefits also has tax implications . Aid is tax-free, as Stiftung Warentest reports, but it is subject to the so-called "progression reservation". In other words, it is fictitiously added to taxable income.
And also Bernd Werner, board member of the income tax help for employees e. V., income tax relief association, emphasizes according to a report by n-tv.de: Anyone who receives short-time work benefits must submit the tax return 2020 * next year. This affects all taxpayers who have received more than 410 euros from unemployment insurance, the expert said.
Read more here : How to calculate short-time work benefits - and this applies when you get sick.
Short-time work to be taken into account in the 2020 tax return
According to the report, the taxable income * is first determined when calculating the tax rate . It is less because of short-time work . Then the tax authority adds the short-time allowance. The tax rate is then calculated from the resulting sum. In other words, the tax rate is higher due to payments from unemployment insurance. The taxable income is then taxed at this tax rate.
This also applies to married couples or registered civil partnerships that are assessed together, according to the report on n-tv.de. Be one of the partners in short-time work, the tax rate increased by the progression reservation will be applied to the common taxable income. "As a result, the progression reservation can lead to many employees having to pay taxes next year," the expert Bernd Werner is quoted as saying.
"In order to alleviate the effects of short-time work, which are financially disadvantageous for employees, some employers grant a subsidy to the short-time allowance," the report continues. "This is taxable wages." If the employer's allowance together with the short-time allowance does not exceed 80 percent of the lost wages, then it is free of contributions. That means: No social security contributions would have to be paid.
Video: More short-time work benefits - what does this mean for employees?
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Short-time work allowance: effects on pension
The spa worker benefit also has an impact on pension contributions , the portal reports. "The contributions here are based on the net wages, because the contributions are paid during short-time work on the basis of the actually paid - reduced - earnings of the employee," the report says. Lower contributions would subsequently lead to lower pension payments.
Also interesting: Money from the state: These offers and help are available to employees in short-time work.
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* Merkur.de is part of the nationwide Ippen-Digital editors network.
