What does the gross salary per year mean

Netto gross calculator - net salary calculator

Net gross calculator

In rare cases, the relevant laws change during the year; at the beginning of the year there are very often changes. At this point in time - from January to February - you can practically test what a net gross calculator is good for. The providers of such computers then have to follow the tax legislation on a daily basis. These laws in particular are often only changed in the last 14 days of December, the changes then take place from 01.01. in force. Some changes will take effect from January 10th. or from 01.02. and also from March 1st, so that a high level of accuracy is required for the net gross calculator in the first quarter of a year. We pay attention to these details, follow the decisions and the questions in advance. The software is then programmed accordingly and changed over to the exact day. As a result, our net gross calculator reliably delivers exact results, which are checked by a specialist tax lawyer. Of course it works with one Net gross calculator not only about the accuracy, but also that it is easy to use - a point that we also pay attention to.

Advantage of the net gross calculator

If you apply for a new position and only know the gross salary offered, you need one Net gross calculator for a clear statement of what will end up in your wallet. The calculator is also very helpful for salary negotiations. The boss offers a raise, but what's left? These are two scenarios that assume a known gross salary. But there is also the other way around, with one Net gross calculator to determine what gross income is necessary to achieve a certain net income. When choosing their tax bracket, married couples can use the calculator to quickly work out the most favorable option for them. The same applies to the distribution of child allowances. The number of children does not influence the gross salary, but it does make itself felt in the net salary through the child allowances. Child allowances are annual tax-free amounts that proportionally lower wage tax on a monthly basis. Married couples can share this exemption, which is calculated using the factors 0.5 or 1 and significantly reduces church tax and the solidarity surcharge.

Why select by federal state in the net gross calculator?

The church tax is inconsistent in the German federal states and is deducted directly from the gross wage. Furthermore, social contributions differ between the new and old federal states. The federal state must therefore be in Net gross calculator must be noted in order to obtain an exact result. The corresponding values ​​have been incorporated into the software and are automatically taken into account. Incidentally, the highest salaries are achieved in Bavaria, Baden-Württemberg and Hesse, the lowest in Saxony, Mecklenburg-Western Pomerania and Saxony-Anhalt.

The difference between gross and net salaries

The gross salary is stated in the employment contract and does not change without an adjustment. It is the decisive factor for the employer. The net payment that the employee receives depends on various factors, which - see above - can change every year due to new laws. However, a change in the tax class that the spouse could undertake also changes the income tax. One scenario would be that one spouse suddenly earns much more or much less and the other partner changes their tax bracket as a result, which has a decisive impact on the net wage. Also those set by the state Social security contributions can vary once or even several times a year. Some taxes vary from region to region, so that a certain gross wage is not the same in every federal state Net income must lead.

Influence of wage tax

The wage tax is an advance payment on our income tax. This is due in May and determined by the annual tax return. Additional expenses such as business expenses, extraordinary expenses or donations, but also additional income (additional income, income from rent or lease) can and must be stated. The actual income tax results from this calculation. The wage tax, on the other hand, is deducted directly from the gross salary (the source of the income) as so-called withholding tax; the employer pays it to the tax office. Child allowances and social contributions are taken into account when determining wage tax. If the wage tax paid is higher than the actual income tax, the employees receive a refund from the tax office, in the opposite case they have to pay something back.

Use the net gross calculator for an annual salary

Anyone who always works in the same company and receives a constant wage and possibly a 13th salary and / or vacation pay can do an annual calculation. This calculation provides employees with precise information on the actual average salary and also on the income tax incurred.

Net gross calculation on a monthly basis

Anyone who has not been or is not constantly employed in a company and also employees with different salaries due to overtime, bonuses or commissions should do the Net gross calculator apply on a monthly basis. Shift workers are more frequently affected by changing pay, and they also receive colleagues who have to take over emergency services.

What is the gross wage?

That is the entire amount of money that is due for the work of the employee. There are in it next to that Net wage include all taxes and social security contributions, the latter being shared by the employee and the employer. The net wage is paid to the employee. In many cases it is barely more than half of the gross wage.

What are tax exemptions and exemption limits?

There are several tax-free amounts, the tax-free amount that is valid for every tax citizen is the basic tax-free amount. It has been EUR 8,820 per taxpayer since 2017, and EUR 9,000 from 2018 (double the amount for couples assessed together). No income tax is payable up to this income level. There are various other allowances, such as the child allowance, the single parent allowance and the lump sum for the disabled, which can be taken into account in the wage tax, but many more allowances for other types of tax. Certain allowances are granted upon application and noted on the income tax card. A distinction is to be made between the exemptions and the allowances for income-related expenses. In principle, tax exemptions always apply, even if the corresponding income limit is exceeded. For example, income tax for all tax residents in 2018 will only be calculated on the income of over 8,820 euros. This does not apply to exemption limits. So if a taxpayer earns income above a granted exemption limit, he must pay tax on the entire income. Employees can benefit from exemption limits for employer loans or benefits in kind, for example.

How can a tax class be determined?

The percentage of wage tax depends on the tax class, in Germany there are six wage tax classes:

  • Tax class I: Single persons, permanently separated, spouses / life partners with a partner who is only subject to limited tax liability
  • Tax class II: Single parents with the requirement of class I and entitlement to single parenting relief, widowed from the second month after the death of the spouse
  • Tax class III: Married people whose partner earns significantly less
  • Tax class IV: Married people with similar income
  • Tax class V: Married people whose partner earns significantly more
  • Tax class VI: Wage earners with a second employment relationship

Compulsory pension and health insurance

In principle, salaried employees are subject to compulsory pension insurance and, up to a certain income, are obliged to join a statutory health insurance company. The compulsory health and long-term care insurance applies to all citizens, but the self-employed and members of the liberal professions can choose a private health insurance and a tariff with a high deductible, which significantly lowers the insurance premiums. The self-employed are not obliged to make provisions for their old age. Wage earners have to live with the deduction of these social security contributions, which the net gross calculator takes into account.

Church tax liability

Confessionally bound taxpayers have to pay eight or nine percent church tax, which is also withheld from the gross wage. The lower rate of eight percent only applies in Baden-Württemberg and Bavaria.