Holidays are the best time of the year for most workers and are supported by many employers with holiday pay. As this is an income, taxes and social security contributions are deducted. For employers who want to give their employees tax-free holiday pay, the recovery allowance is a possibility. However, there are some rules to follow.
Caution: observe maximum limits
The recovery allowance is an additional, voluntary benefit for the wages owed. A settlement with a possibly agreed holiday pay is not possible. Every household can only use the recovery money once a year. The maximum annual limits for the employee amount to 156, – Euro, additional 104, – Euro for the spouse or registered partner as well as additional 52, – Euro per child. A family with a child can therefore receive a maximum of 312, – €. For this amount, the employer pays 25% tax, 5.5% solidarity surcharge and church tax. Since there are no social security contributions, the recovery allowance is also worthwhile for him. If the maximum amounts are exceeded by only one cent, taxes and social security contributions are due for the entire payment. If necessary, get expert advice in tax matters from a tax consultant like www.hartmann-huebner.de .
The recovery money must be in the same time as a “recovery” of at least one week. In order to ensure a timely relationship, it is recommended that the leave be taken 3 months before or after receipt of the aid. Legally, the nature of the recovery measure is not regulated, it only has to serve recovery. The employee must therefore prove that, for example, family outings, the visit to amusement parks or spas, a short break or other recreational activities have been paid for by the recovery allowance granted.
On the one hand, the recovery allowance promotes the health and motivation of employees and, on the other hand, it can be granted social insurance-free, making it an excellent tool for the employer to promote occupational health management. Employers at bgm-hazzan.de will find out what other opportunities exist in this area and how companies can integrate company health management into their existing company processes .