Germany Employee Payroll — Lohnsteuer, SV & Lohnsteuerbescheinigung

Collect the employee's personal and tax data and retrieve their electronic wage tax deduction characteristics (ELStAM) from the Finanzamt system via ELSTER. Confirm Steuerklasse, Kinderfreibetrag factor (ZKF), Freibetrag/Hinzurechnungsbetrag, and Kirchensteuer indicator. Identify Krankenkasse, Zusatzbeitrag rate, number of qualifying children for Pflegeversicherung, and whether the employee works/lives in Sachsen.

Calculate monthly Lohnsteuer using the BMF Programmablaufplan (PAP 2026) — annualise gross pay, subtract ANP (EUR 1,230), SAP (EUR 36), and Vorsorgepauschale, apply UPTAB formula per Steuerklasse, then de-annualise. Compute Solidaritätszuschlag (5.5% of LSt, subject to Freigrenze) and Kirchensteuer if applicable (8% Bavaria/Baden-Württemberg, 9% elsewhere). Compute employee and employer social insurance contributions (RV 9.3%, KV 7.3%+ZB/2, PV per child-count table, AV 1.3%) capped at Beitragsbemessungsgrenzen (KV/PV: EUR 5,812.50/month; RV/AV: EUR 8,450/month). Apply Midijob Gleitzone rules if gross is EUR 603.01–2,000.

Produce a fully compliant payslip under §108 GewO showing all mandatory fields: employee name/address/tax ID, pay period, Steuerklasse and Kirchensteuermerkmale, Bruttolohn, Lohnsteuer, Solidaritätszuschlag, Kirchensteuer, each SV branch separately with Zusatzbeitrag rate, all voluntary deductions, and Nettolohn. Employer SV figures should appear as informational items. Retain payslip records for 6 years (tax) / 10 years (social security).

File the monthly Lohnsteuer-Anmeldung with the Finanzamt via ELSTER by the 10th of the following month, remitting aggregated Lohnsteuer, Solidaritätszuschlag, and Kirchensteuer. Submit the SV-Beitragsnachweis (contribution statement) to each Krankenkasse by the second-to-last working day of the current month, and ensure SV payment is collected by direct debit on the fifth-to-last working day. Transmit DEÜV-Meldungen (employee notifications) to Deutsche Rentenversicherung via the Krankenkasse.

By 28 February of the following year, transmit the Lohnsteuerbescheinigung electronically to the Finanzamt via ELSTER and provide a copy to each employee. This certificate shows the full-year figures needed for the employee's Einkommensteuererklärung. Optionally perform a Lohnsteuer-Jahresausgleich in December per §42b EStG to reconcile over/under-withholding for eligible Steuerklasse I/II/IV employees. Submit Jahresmeldungen (annual SV notifications) to each Krankenkasse by 15 February.