The inflation relief package recently presented by the government is intended to ease the burden on the population by means of immediate measures. This article provides an overview of the most important changes relating to payroll accounting and HR:
Reduction of the Accident InsuranceContribution
In order to reduce the non-wage labour costs borne by employers, the contribution to accident insurance is to be reduced from the currently 1.2% to 1.1%. As of January 1st, 2023, this is to apply to both to fully insured employees and to marginally employed persons.
Increase in the Family Bonus Plus
To support families, the increase in the Family Bonus Plus decided by the Eco-Social Tax Reform 2022 (Federal Law Gazette I 10/2022) is now to take effect retroactively as of January 1st, 2022, instead of July 2022:
- for children up to 18 years of age from EUR 125 per month to EUR 166.68, thus from EUR 1,500 per year to approx. EUR 2,000 (due to the advance shift, the amount for 2022 will be approx. EUR 250 more than it would have been with the increase during the year).
- for children aged 18 and over from EUR 41.68 per month to EUR 54.18, thus from EUR 500 per year to approx. EUR 650 (due to the advance shift, the amount for 2022 will be approx. EUR 75 more than it would have been with the increase during the year).
Employers will therefore be obliged to carry out a roll-up for the past months as soon as possible - but (provided the technical and organizational possibilities are available) no later than the end of September 2022.
Increase in Supplementary Child Benefit
The increase in the Supplementary Child Benefit, which was also introduced with the 2022 eco-social tax reform, is now not to be increased in stages (EUR 350 for 2022 and EUR 450 from 2023), but retroactively already for the 2022 calendar year to EUR 550 per child.
Cost-of-Living Deduction
Taxpayers who are entitled to a transportation deduction (or a pensioner deduction, but do not receive an extraordinary one-off payment also included in the Inflation Relief Package) shall be entitled to a one-off cost-of-living deduction in the amount of EUR 500 for the calendar year 2022. In order to minimize the administrative burden for employers and to avoid additional complexity in payroll accounting, active employees who are entitled to the transportation deduction should receive the cost-of-living adjustment as part of their tax assessment.
Cost-of-living bonus
Another new feature is that allowances and bonus payments granted by employers in the calendar years 2022 and 2023 as a result of inflation (cost-of-living bonus) can be paid out to employees free of tax up to an annual amount of EUR 3,000. Neither social security contributions, wage tax nor non-wage labour costs have to be paid.
- The basic requirement is that these are additional payments that usually have not been granted before.
- However, part of this amount (EUR 1,000 out of a total of EUR 3,000) is only exempt from tax if the payment is made on the basis of a wage-forming provision pursuant to Section 68 paragraph 5 no. 1 to 7 of the Income Tax Act.
- Such payments do not increase the annual sixth pursuant to Section 67 paragraph 2 of the Income Tax Act and are not offset against the annual sixth. If the requirements are not met or if higher amounts are paid out, they shall be taxed according to the tariff.
- Limitation in combination with profit participation: If in the calendar years 2022 and 2023 both a profit participation pursuant to Section 3 paragraph 1 no. 35 Income Tax Act and a cost-of-living bonus are paid out, these are only tax-exempt to the extent that they do not exceed a total amount of EUR 3,000 per year. According to the wording of the legislator, a tax-free profit participation granted in the calendar year 2022 can be treated retroactively as a cost-of-living bonus. According to the legislative materials, the possibility of reclassification is expressly granted because the cost-of-living bonus, in contrast to the profit participation, is also exempt from social security and non-wage labour costs in addition to being exempt from wage tax.
Authors:
Michaela Lexer
+43 5 70 375 - 8711
michaela.lexer@bdo.at
Julia Mäder
+43 5 70 375 - 1521
julia.maeder@bdo.at
Abonnieren Sie die neuesten Nachrichten von BDO.
Please fill out the following form to access the download.