The term “Lohnabrechnung” translates to “payroll accounting” or “wage slip” in English. It is a document that details an employee’s earnings and deductions for a specific period.
What is “Lohnabrechnung”?
In Germany, “Lohnabrechnung” refers to the process and documentation of calculating and reporting an employee’s wages, including deductions for taxes and social security contributions. It is a critical aspect of employment, ensuring transparency and compliance with German labor and tax laws. Employers are legally required to provide a “Lohnabrechnung” to their employees, typically on a monthly basis, to outline the composition of their gross and net pay[3][5].
More information about “Lohnabrechnung”
The “Lohnabrechnung” must contain several mandatory details, such as the employee’s gross salary, tax class, social security contributions, and net salary. It also includes any additional payments like bonuses or allowances and deductions for health insurance, pension schemes, unemployment insurance, and possibly church tax, depending on the employee’s affiliation[2][4][8].
Related to “Lohnabrechnung”
Here are some additional terms that are related to “Lohnabrechnung”:
- BruttoBrutto income, literally translated as "gross income" in English, refers to the total earnings of an individual or business before... More: The gross salary before any deductions[18].
- NettoNetto income, or "Nettoeinkommen" in German, refers to the amount of money an individual takes home after all taxes and... More: The net salary received after all deductions have been made[18].
- SteuerklasseThe term "Steuerklasse" translates to "tax class" in English. It refers to the categories under which taxpayers are grouped in... More: The tax class that determines the rate of income tax withholding[4].
- Sozialversicherungsbeiträge: Social security contributions that are split between the employer and employee[8].
- KirchensteuerKirchensteuer, or church tax, is a unique financial obligation in Germany, translating literally to "church tax" in English. What is... More: Church tax applicable to members of certain religious communities[4].
In conclusion, understanding the “Lohnabrechnung” is essential for both employers and employees in Germany to ensure accurate wage processing and compliance with legal requirements.