Tax Relief Act 2022: Energy Relief Payout (ERP)
The Tax Relief Act 2022 provides for the payment of a one-time taxable but social contribution-free Energy Relief Payout (ERP) in the amount of 300.00 EUR. Employees receive the energy relief payout via the employer's payroll run if they are subject to unlimited tax liability on September 1, 2022, and,
- are in a first employment relationship, and
- are classified in one of the tax classes 1 to 5 or receive wages taxed at a flat rate (§ 40a Sec. 2 German Income Tax Act).
Employers who do not file a wage tax return are exempt.
Low-income employees (mini-jobbers)
The prerequisite for payment of the flat-rate energy allowance is that the employee can confirm in writing to the employer that a first employment relationship exists. A template for confirmation of the employee that this applies is provided on the German Federal Ministry of Finance's website.
Note:If you employ mini-jobbers, please request the confirmation now if this is the first employment relationship. Forward the confirmation to us immediately.
Payment and financing of the Energy Relief Payout
The energy relief payout is added to the remuneration in September 2022. Employers will receive the reimbursement from the Treasury with their wage tax filing. In order to protect employers from financing the energy relief payout, the law provides for immediate consideration in the wage tax filing by offsetting the energy relief payout with other wage tax liabilities.
Various options arise depending on which wage tax filing cycle applies to the employer:
- Monthly payroll tax filing (August 2022) by Sept. 12, 2022; September 2022 payment.
- Quarterly payroll tax filing by Oct. 10, 2022; October 2022 payment.
- Annual payroll tax filing by Jan. 10, 2023; right to choose whether and when to make a payment (September through December).
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