Taxes when being employed in vacation

10 posts in this topic

I have resigned on 15 of July from my current job and the notice period is of 3 months, until 15 of october, but since i had vacation days, I will be in vacation from 1st of October to the 15th. My new employer needs me as soon as possible, and i would like to start there from 1st of October.

But, I understand that if i do that from 1 -15 Oct i would be paying taxes as for two jobs, much more that the usual taxes i pay.

Do you know any way I could avoid that?

Thank you!

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I don't believe so. You are getting income from both. Unless you don't want your balance of vacation pay, you'll have to pay tax on all of your income, including vacation pay.

 

Kris

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Thanks!

I have one more doubt: currently I am on tax class 3 - will I be paying class 6 taxes for both incomes, for the old job's income and the new one, or only for one of them?

 

 

I don't believe so. You are getting income from both. Unless you don't want your balance of vacation pay, you'll have to pay tax on all of your income, including vacation pay.

 

Kris

 

 

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Thanks!

I have one more doubt: currently I am on tax class 3 - will I be paying class 6 taxes for both incomes, for the old job's income and the new one, or only for one of them?

 

 

I don't believe so. You are getting income from both. Unless you don't want your balance of vacation pay, you'll have to pay tax on all of your income, including vacation pay.

 

Kris

 

 

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There was a thread about this recently (which I can find and link to later). You're not allowed to do it. You are still employed in your old job, whether you have holidays or not. While you are on the payroll for the old job, you can't start at the next one (unless you're referring to part-time jobs).

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Thanks! Indeed I was reffering to full time jobs.

You you find that topic, i would love to read more on it.

Do you know what are the penalties if this situation happens? Having two full time jobs?

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Here's the link:

http://www.toytowngermany.com/forum/index.php?showtopic=306308&st=0&p=3109019&fromsearch=1&#entry3109019

 

From my googling, it seems that if your "old" boss finds out, you can be fired on the spot - may not make much difference in terms of time, but that ma affect your reference.

 

Also as mentioned on the thread, you can't get your deregistrations from the old job (tax, health insurance etc) until you finish.

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When you begin work with a new employer, he needs the following information and documents in order to calculate the compulsory contributions he must deduct from your salary.

 

Your tax code to calculate how much tax you have to pay and if you have to pay church tax or not.

The name of your health insurance company and your insurance number. You will receive a document from your previous employer stating that your employer has informed your health insurance company that you are no longer working there. This is called Bescheinigung zur Sozialversicherung-Abmeldung

A statement from your last employer stating how many days holiday you have taken in the current year. This is known as an Urlaubsbescheinigung

 

These documents are compulsory and are handed over to the person concerned AFTER the last day of work at the company.

 

You are not allowed to work for two employers in a full-time job at the same time. If you somehow do so you will not only have to pay tax according to tax code 6 because you have no tax document, you will also have to pay health insurance, old age health care, unemployment benefit and contributions to the state pension scheme for BOTH employers.

 

Here is an example of what will happen.

Employer A informs the above mentioned organisations that Mr X worked for my company from 01.01.2013 until 31.10.2013 on or after 31.10.2013

Employer B informs the same organisations that Mr X began work with my company on 01.10.2013 during the month of October.

 

This will really screw the perfectly organised German system up which Germans absolutely hate. You will then receive question sheets from all the above mentioned organisations asking you to state which "Meldung" is correct. According to the system only one of them can be correct, how are you going to explain this???

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Do you know any way I could avoid that?

 

As others have said - you avoid it by not doing it, Worst case is that you get fired from both jobs, no one pays you for the overlap period and you end up having to apy health insurance and national insurance contributions out of your own pocket.

 

Tax is the least of your worries.

 

Don't do it.

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Try to get your current employer to make Sep 30 your last day, and pay out your remaining vacation ...

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