due to the coronavirus crisis, special payments for employees up to an amount of 1,500 Euro will be exempt from tax and social security contributions in 2020.
This was announced by the Federal Ministry of Finance on 03.04.2020.
Employers can now pay out tax-free allowances and benefits to their employees up to an amount of 1,500 Euro or grant them as non-cash benefits.
This covers special benefits which employees receive between 01.03.2020 and 31.12.2020. It can be assumed that the payments can also be made in parts.
A precondition is that the allowances and benefits are paid in addition to the wages already owed. The tax-free benefits must be recorded in the payroll account. Other tax exemptions and valuation allowances remain unaffected.
If you have any questions, please contact us. We are happy to help you.