Tax for double employment

7 posts in this topic

Hello,

 

I'm currently working in Berlin for the last 2 years. My current company is closing it Berlin operations by 30th June 2021. They have already sent us the termination letter and have agreed to pay us the salary till 30th June 2021. 

 

I have to work mostly for April to transition the knowledge to folks in another country. And then in May and June, I'll be on garden leave (i.e. I will get a salary but I need not need to work). My question is: if I find a new and start a new full-time job before June, how much tax I would be paying? Does anyone have any idea as technically I'm getting two salaries for certain months? My company has already agreed that even if I find a new job they will continue paying me the salary till 30 June 2021 but they will only not pay the employer contribution to the govt.

 

Salary for example:

current: 60K/year

new one: 65K/year

so for May/June (if I found a job) i will get double salary of [60K/12 + 65K/12]

 

Personal info:

Married, in tax class 3, public insurance

 

 

Has anyone has an idea? please share. Let me know if you need any more details. 

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I am not the expert, but if its ok for both the employer to pay you, then you will need to get yourself taxed on one of the salary with tax class 6 for the overlapping months. 

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17 hours ago, vivanco said:

I am not the expert, but if its ok for both the employer to pay you, then you will need to get yourself taxed on one of the salary with tax class 6 for the overlapping months. 

Thanks for the response. If both are ok, Is there any rule on how much tax I need to pay, and can I choose which salary to be taxed that %?

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49 minutes ago, AnkitBerlin said:

Thanks for the response. If both are ok, Is there any rule on how much tax I need to pay, and can I choose which salary to be taxed that %?

You can decide which salary need to be taxed with tax class 6, the class where you pay highest tax. Since you need to file tax declaration, in the end it doesn't matter which salary you select for higher tax. 

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50 minutes ago, vivanco said:

You can decide which salary needs to be taxed with tax class 6, the class where you pay the highest tax.

great. so when I take a job for 65K, I can tell my new employer to notify/charge the tax class 6 for my previous salary. 

 

Quote

Since you need to file tax declaration, in the end it doesn't matter which salary you select for higher tax. 

Didn't quite understand this part. It does matter, right? I would like to select tax class 6 for a lower salary one so as to lose less money. Or you are saying at the end of year, they average out the earnings and tax you differently?

 

Really appreciate your help. Thanks

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1 hour ago, AnkitBerlin said:

Didn't quite understand this part. It does matter, right? I would like to select tax class 6 for a lower salary one so as to lose less money. Or you are saying at the end of year, they average out the earnings and tax you differently?

 

Really appreciate your help. Thanks

See in short term money in your hand will differ based on your choosing which salary is taxed in which class. When you file the tax declaration (i think you have to) next year for the current year, then the taxes will be calculated on the basis of your total whole year income. If you have paid excess tax then you will get back money from finanzamt. And if you have paid less taxes then you have to pay the difference to the finanzamt. 

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