Austria Employer Payroll — Lohnsteuer, ASVG & Kommunalsteuer

Collect all data needed to register the employee with the Österreichische Gesundheitskasse (ÖGK) and establish the payroll record. In Austria every new employee must be reported to the ÖGK via ELDA (Elektronischer Datenaustausch) before the first working day (Vor-Anmeldung). This phase confirms employment type, collective agreement (Kollektivvertrag), and whether any exemptions or special regimes apply.

Calculate Lohnsteuer using the progressive tax table (Lohnsteuertabelle) published by the BMF, and compute both the employee and employer shares of ASVG social insurance. The employee social insurance rate for 2025 is 18.12% of gross; the employer rate is 21.13% (including accident insurance Unfallversicherung 1.1%). The Allgemeine Beitragsgrundlage is capped at EUR 6,450/month (ASVG Höchstbeitragsgrundlage 2025). The Geringfügigkeitsgrenze is EUR 551.10/month.

Remit the withheld Lohnsteuer to the Finanzamt and the combined social insurance contributions (employee + employer share) to the ÖGK. Lohnsteuer is due by the 15th of the following month. ASVG contributions are also due by the 15th of the following month via ELDA Beitragsnachweisung. Kommunalsteuer is due by the 15th of the following month to the relevant Gemeinde.

Process the preferentially taxed Sonderzahlungen (special payments). Under EStG Section 67, the first one-sixth of annual gross remuneration (Jahressechstel) is taxed at a flat 6% rate instead of the progressive Lohnsteuer scale — this covers Urlaubsgeld (holiday pay) and Weihnachtsremuneration (Christmas bonus). Amounts above the Jahressechstel are taxed at the regular progressive rate. This phase is triggered in June and November or whenever a Sonderzahlung is paid.

At year-end, prepare and transmit the Lohnzettel (Form L16) for each employee via FinanzOnline. The L16 summarises the employee's total wages, Lohnsteuer withheld, social insurance contributions, and Sonderzahlungen for the calendar year. Submission deadline is 28 February of the following year. The employer must also prepare the Lohnkonto (payroll ledger) which must be retained for seven years. Optionally assist employees with Arbeitnehmerveranlagung (employee tax assessment, formerly 'Lohnsteuerausgleich') if excess Lohnsteuer was withheld.