Tax & Payroll Processing

Our law firm, Dwyer Legal, is in the position to consult and assist our company clients when it comed to the determination of income taxes to be paid and social security registrations to be made.

As, in Germany, income taxes on the employee’s salary and the contributions are to be deducted and paid directly by the employer to the German tax revenue agency, these positions need to be clearly identified. The calculation of the same (and also the additional contributions to be paid by the employer directly) is usually done through a payroll or shadows payroll processing, which we can also offer to our company clients.

Details to taxes and contributions:

a) Income taxes:
In Germany, the percentage of taxes depends on the income. The tax range varies from 14–45%. Solidarity tax is additional.

b) Social contributions:
In Germany, each employee must be registed in the German social security system, which contains the following branches:

  • Health insurance
  • Long-term care insurance
  • Accident insurance
  • Pension fund insurance
  • Unemployment insurance

The German social security system is not financed by taxes but by separate contributions.

  • Contributions are about 40% of the gross salary
  • 50% is paid by the employee (salary deduction)
  • 50% is paid by the employer, on top of the gross salary

Please contact us to learn more about our consulting and our payroll and shadow payroll services.

Correspondence languages are English, German and Italian.