Overview of Payroll in Germany - Basics
-
learning hour's
6
-
Material Year
2026
Overview
German payroll is a complex field with lots of laws and regulations. This course gives you a deeper insight to German Payroll. It is an extremely practical course which deals with all of the issues, which are important to anyone either working in, or responsible for, the payroll function. The course covers all of the essential rules in the operation of PAYE tax and social insurance, it outlines the rights and obligations of both employers and employees. It uses clear examples to illustrate many of the points raised.
Who is this course for?
This course is aimed at those Payroll & HR Professionals who are processing or managing Vendors who process Payrolls in Germany and need to have an understanding of the legislative and legal requirements involved.
What will you achieve?
At the end of this course delegates will received a detailed overview of the complex German payroll legislation and gain the knowledge and confidence to understand the fundamentals of payroll processing in Germany. They are clear about employer obligations, calculation of gross pay and deduction, know what they need to do on a periodic and annual basis, can answer employee queries and check payslips and other forms.
What will be covered?
Country Overview:
- Key Conditions of Working in Germany
- Tips for working with German Authorities and Forms
- Registering as an Employer
- Employment of foreign workers
- Union Membership, Collective Agreements and Work Council
Employment Law:
- An Overview German labour law
- Terms and termination of employment
- Processes relating to new starters and leavers
- Mindestlohngesetz – National minimum wage
Payroll Administration:
- A glossary (including English translation) of terms that are used regularly in German payroll
- How to read a German payslip (including English translations)
- Reporting data protection and record keeping
- Year-end activities and timetable
- Calculation scheme of German Payroll
- Identifying gross pay and kinds of remuneration
Taxation:
- Explaining the different kinds of income tax es in detail (wage tax, church tax, solidarity surcharge, lump sum wage tax)
- Tax categories, tax allowances, tax identification number, tax tariff
- How to run ELStAM (Elektronische Lohnsteuerabzugsmerkmale)
- Identifying what income is taxable and exempt
- Processing Payroll Taxes, wage tax registration form (Lohnsteueranmeldung), electronic wage tax certificate (elektronische Lohnsteuerbescheinigung)
- Examples of the different tax calculations for regular earnings and one-off payments
Social Insurance:
- German Social Security Scheme, social insurance number
- Explaining the different kinds of social insurance (especially public and private health insurance)
- Contribution assessment ceilings, annual earning limit, codes (BRGS and PGS), digital data exchange procedure (DaBPV)
- Proceeding social insurance contributions - notifications, contribution statement and due dates
- Examples of the different calculations of social insurance contributions for regular earnings and one-off payments
- Statutory accident insurance and Umlagen (U1, U2 and U3 - INSO)
Summary
This course offers a deep insight into the intricacies of payroll in Germany. Outlining the rights and obligations of employees and employers, detailing payroll legislation and essential rules for operating PAYE tax and social insurance, it is an invaluable opportunity for attendees to gain a strong knowledge base.
Course Trainers
-
Britta
Senior ConsultantOur trainer is a specialist in German payroll, HR, finance and accounting. She has acquired wide-ranging expertise through many years of academic study and professional experience. She passes this on to international companies seeking to adapt to German regulations and practices relating to payroll, accounting and HR. Our trainer develops and delivers seminars in companies and through adult- education providers. She has worked for the Chartered Institute of Payroll Professionals (UK) as a tutor and taught at the Hamburg University of Applied Sciences.
-
