J. Recalculation by the employer

What does recalculation by the employer mean?

As a voluntary and special service, the employer or the pension insurance provider may, among other things, balance out differences in amounts in connection with the monthly tax assessment base in the course of a "recalculation of the wage tax". No application is required for this procedure.

If more than one-sixth of the incoming current remunerations has been taxed at a preferential rate as other remuneration during the year, the employer must carry out a "wage tax recalculation" in December (or in the month of termination) and pay subsequent tax on the excess.

If you have worked for your employer all year, or if you have received a pension from your pension insurance provider all year, and no tax-exempt amount was recognised for you, the employer or the pension insurance provider can consider your trade union dues (this obviously requires timely presentation of the documents) and recalculate the tax for miscellaneous remunerations within the one-sixth of the year (with regard to the tax-exempt amount and the phase-in rule).