Until March 31st, companies can pay their employees compensation for the additional work caused by the pandemic. But what should be considered when making a special payment?
Until March 31, 2022, employers have the opportunity to pay their employees a pandemic-related special payment of up to 1,500 euros – tax-free and without social security contributions. We have summarized what needs to be considered for you.
Who does the special payment apply to?
Already on March 1, 2020 the regulation for special services was made in the Corona period. This was initially limited to December 31, 2020, was then extended to June 30, 2021 and now extended again to March 31, 2022. Whether there will be another extension remains questionable. It is all the better if employers decide to make a special payment for their employees this month. It doesn’t matter what industry you work in. Only the following requirements apply:
- The payment must be made in addition to the regular salary
- There must be a connection to the pandemic: This means, for example, it should be stated in writing that the payment is intended to compensate for the additional expenses caused by the corona crisis
- The payment must be recorded in the payroll account. However, a listing in the wage tax certificate or income tax return is not necessary.
Not only permanent employees benefit from the payment, but also part-time employees and people with mini jobs, because the payment is not dependent on the scope of employment. And since the special payment is tax and social security-free as long as it amounts to a maximum of 1,500 euros, it does not affect the 450-euro earnings limit in mini-jobs. On the contrary: If you have several mini-jobs (or generally several wage relationships), you can theoretically receive the special benefit in each of them. The short-time allowance also has no effect on the special payment.
It is important to know, however, that the extension of the deadline does not mean that 1,500 euros can be paid tax- and duty-free several times. Only the period of the option is extended. Companies can therefore decide this month to reward their employees with a corona bonus. The next few weeks will show whether the deadline will be extended again – but the chances are rather slim due to the many corona regulations that were no longer applicable in March.
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