Social security and tax deductions
Pay in lieu of leave is subject to social security and tax.
Compensation is subject to tax.
Deductions for payment in lieu of leave
We deduct a fixed percentage from each payment in lieu of leave. We pass on the withheld amount to your employer. Then the employer transfers that money to the responsible social security authorities in your home country. For workers, who are subject to social security contributions in Poland, we pay the money directly to the competent social security authority (ZUS).
We also deduct a lump sum for income tax (20 %) and solidarity surcharge (1.1 %) from your payment in lieu of leave. We are legally obliged to pay the withheld amount to the tax office in Wiesbaden („Finanzamt Wiesbaden“). Therefore, you will receive a certificate of income tax deduction from us.
Deductions for compensation
We deduct a lump sum for income tax (20 %) and solidarity surcharge (1.1 %) from your compensation. We are legally obligated to pay the amount to the tax office in Wiesbaden („Finanzamt Wiesbaden“). Therefore, you will receive a certificate of income tax deduction from us.