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Parental Allowance Optimization Through Wage Tax Class Change

25.11.2015

Many parents are wondering if it pays to change payroll tax in terms of parental allowance. In principle, it should be noted that the amount of the parental allowance of employees is significantly influenced by the payroll tax class to be taken into account (so-called deduction feature according to § 2c (3) BEEG). It used to be that allowances on the income tax card or in the electronic income tax deduction features (ELStAM) still had a direct influence on the parental allowance amount. As a result, under certain circumstances, the consideration of payroll tax could be optimized in such a way that gross income relevant to parental leave was barely reduced by income taxes. This "opportunity" was put forward by the law on simplification of the parental allowance from 10.09.2012 a bar, that in the future no longer the actual net income basis of assessment, but the gross income "notionally payable taxes" are settled. As a result, the principle now applies that the tax code is decisive for determining the income that was taken into account on the last payroll before parental allowance. This principle would only be broken if a tax class change took place during the assessment period (ie 12 months before birth). In such a case, the tax code applicable to the overwhelming majority of the months of the assessment period shall prevail. Couples in which only one partner wages should, if not already done so, choose wage tax class III. Couples, who have chosen the tax code combination IV / IV because of their nearly similar high pay, should apply for the so-called factor procedure regarding the optimization of their parental allowance. Although allowances do not have any effect on parents' rights, the factor regularly influences the parental allowance amount. Many couples can increase their expected parental allowance. With the tax code combination IV / IV, the factor method can really be worthwhile. You can apply for the factor at your local tax office. If you want a comprehensive parental allowance advice, perhaps even want to give the entire application process in trustworthy hands, I recommend the top package from Elterngeldberatung Dresden - Felix Böhme, Dipl. Finanzwirt (FH) - with me you are Fair.Beraten.

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