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Legal changes from 01/01/1999 - Taxes 

Description

New income thresholds for the employee association in Saarland

Maximum contribution	9.56 DM
Minimum monthly gross amount:	630.01 DM
Minimum daily gross amount:	21.01 DM

New forms for employment tax registration

The forms for employment tax registration were adapted to the legal requirements from January 1999.

Lifting the child allowance payment regulation

As payment of the child allowance will probably no longer be made by the employer from the 1st January 1999, check that all the records in the Child allowance infotype (0232) are valid until 31st December 1998 at the latest.
You can use the report List of child allowance statements (RPLSTAD0) to select records valid after this period.

Reducing exempt amounts for severance pay

Consider the appropriate changes when entering the severance pay exempt amount using the user wage type in the master data.

Change system parameters in customizing

Cession of exempt amounts for anniversary payments.

Delimit your user wage types for anniversary payments to the 31st December 1998. For the new entry that is valid from 1st January 1999 to 31st December 9999, change the processing class specification from 1 to 0.

For more information, see the Implementation Guide (IMG) Payroll: Germany -> Tax -> Processing -> Allocate Wage Types into Tax-Exempt/Tax-Liable Shares

Cession of half tax rate for severance pay

Delimit your user wage types for severance pay payments to 31/12/1998. For the new entry that is valid from 01/01/1999 to 31/12/9999, change the entry in the Wage type tax-liable share field from /509 to /506.
For more information, see the Implementation Guide (IMG) Payroll: Germany -> Tax -> Processing -> Allocate Wage Types into Tax-Exempt/Tax-Liable Shares.

Delimit the user wage types that are directly included in the cumulations 14, 21 and 22, to 31/12/1998. Change the coding in the cumulations for the entries that are valid from 01/01/1999 as follows:

For more information, see the Implementation Guide (IMG)Payroll: Germany -> Key Wage Types as Tax and SI-Liable Gross

Note:
For taxing the differences that have flowed into the wage types /114 and /121 because of the influx principle as tax gross amounts for several years, you make the following changes in the personnel calculation rule DS12 to the variable key 2 /A14 and 2 /A22:

VarKey FZ   TOperation Operation Operation Operation Operation

--------------+---------+---------+---------+---------+-----------------

2 /A14       DWGTYP=/114VALBS=2   ADDWTE*   DST  LA+C2CMPER JJ98

2 /A14 *      ADDWTI/114

2 /A14 >      ADDWTI/113



VarArg.  FZ  TOperation Operation Operation Operation Operation

--------------+---------+---------+---------+---------+-----------------

2 /A22       DWGTYP=/122VALBS=2   ADDWTE*   DST  LA+C2CMPER JJ98

2 /A22 *      ADDWTI/122

2 /A22 >      ADDWTI/124

Changing the taxation of payments for several years

RPCSDMD3 is implemented for changing the taxation of payments for several years (formerly distribution over 3 years, now distribution over 5 years). To use this new tax module for tax calculation from 01/01/1999, change the symb. name DSTEUER2 entry in the RP subroutines table (T596F). Delimit the old entry to 31/12/1998 and create a new entry from 01/01/1999 to 31/12/9999. When making the new entry, enter RPCSDMD3 as the program name.

Cessation of the shifting of flat-rate tax to the employee

Wage types; remuneration for meals, transportation expenses, comprehensive pension insurance.

From 01/01/1999, do not enter any more wage types that are coded for flat-rate taxation by the employer in accordance with §§40 und 40b (cumulations 61, 62, 63).
If necessary, delimit your user wage types for payments that are taxed at a flat-rate, for which the employee carries the flat-rate tax to 31/12/1998. Change the coding for the new entry that is valid from 01/01/1999 to 31/12/9999 in the cumulations:

or code these user wage types to the individual tax gross amounts 06 (regular) or 11 (other).

Direct insurance / Company car

Do not enter any more infotype records from 01/01/1999 Direct insurance (0026) that are coded with flat-rate tax EE (that means car rule with value 2).

If you carry out flat-rate taxation by the employee

the existing infotype records must be recoded from 01/01/1999 to flat-rate tax ER or individual tax.

The records can be selected and delimited or recoded using the new report RPUSTPD0.

Further notes

To find out which user wage types are coded in which cumulations, you can use the report Use of wage and salary types in Payroll Accounting (RPDLGA20).