How does payroll reporting work in Germany (ELStAM)?
Payroll reporting in Germany runs through electronic links with the tax and social insurance authorities. Employers retrieve each employee's wage tax data, such as tax class, from the ELStAM database, file a wage tax return (Lohnsteuer-Anmeldung) by the 10th day after each period, and send social insurance reports for every employee to the health insurance funds.
Also calledELStAMLohnsteuer-AnmeldungDEÜVelektronische Lohnsteuerabzugsmerkmale
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- Tax data source
- ELStAM database
- Wage tax return
- By the 10th after each period
- Filed through
- ELSTER
How German payroll reporting works
ELStAM, the electronic wage tax deduction features, are held by the tax authority: when an employee starts, the employer registers as their employer and retrieves the tax class and allowances, which the payroll uses; changes are sent to the employer automatically. Each period the employer files the Lohnsteuer-Anmeldung through ELSTER and pays the wage tax withheld, monthly for most employers, quarterly or annually for those with little wage tax. Social insurance reports, such as registrations, deregistrations and annual pay reports, go electronically to the employee's health insurance fund, which also collects contributions. At year end the employer sends each employee's annual wage tax certificate electronically. Personio and Ordio run German payroll and produce these filings.
Common questions
What is ELStAM?+
The electronic wage tax deduction features: an employee's tax class, child allowances and church tax details, held by the German tax authority and retrieved electronically by the employer for payroll.
When is the Lohnsteuer-Anmeldung due?+
By the 10th day after the end of each filing period. The period is a month for most employers, a quarter or a year for those whose wage tax in the previous year was low.
Where do social insurance contributions go in Germany?+
To the employee's health insurance fund, which collects health, care, pension and unemployment contributions and passes them on. Employers report pay and changes to it electronically.
Payroll software for Germany
Part of Accountio’s accounting technology coverage · Glossary
