Annual income tax adjustment

The annual wage tax adjustment is a component of the wage tax deduction procedure. If an employer employs more than ten employees, he is obliged according to § 42 b I 2 EStG to carry out an annual wage tax adjustment. In this pure reimbursement procedure, employees receive a Income tax assessment too much paid wage tax back.
The employer determines the annual wage tax as part of this procedure. If this is lower than the withheld and paid wage tax, he has to reimburse the employee for the excess amount according to § 42b II 5 EStG. The deviation of the annual wage tax liability from the total withheld monthly amounts is justified z. B. in fluctuating monthly wages with progressive tax rates or in additional income-related expenses and Special editions. For the employer, this secondary tax obligation results in additional administrative costs.

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