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Short-time work (in German: Kurzarbeit) is a well-known instrument in Germany that allows companies to temporarily reduce the working hours of employees due to economic difficulties. The goal is to prevent dismissals during periods of lower workload. The German Federal Employment Agency (Bundesagentur für Arbeit) compensates part of the employee’s lost income through the so-called Kurzarbeitergeld (short-time work allowance).

When employers implement personal protection measures or security installations for their employees, careful attention must be paid to the associated tax implications. Recently, the German tax authorities issued updated guidance on the treatment of such expenses. This article provides an overview of the key points for employers and employees.

As Germany faces economic challenges in Autumn 2024, many companies are experiencing reduced demand and are considering implementing short-time work, known as „Kurzarbeit,“ to mitigate financial strain while retaining their workforce. Understanding the current regulations and procedures is crucial for employers aiming to utilize this measure effectively.

The current economic situation in Germany is challenging. With the downturn in the economy during Autumn 2024, many companies are facing reduced revenues and are compelled to lay off employees to remain viable. For employers, navigating the legal and financial requirements during this period is critical, particularly in relation to the payment of severance packages and compliance with termination regulations. Below, we provide an overview of the key aspects employers must consider

As the festive season approaches, employers in Germany often consider organizing Christmas parties, distributing Christmas bonuses, and giving gifts to employees. It’s essential to understand the tax and social security implications of these gestures to ensure compliance and optimize benefits for both the company and its staff

Managing travel expenses correctly is an essential aspect of payroll and tax compliance for businesses …

In the context of international employee assignments, the timely flat-rate income taxation („Zeitnahe Pauschalierung der …

The German „Steuerfortentwicklungsgesetz“ (Tax Development Act), effective in 2024, brings several important changes to payroll …

In Germany, many companies organize Christmas parties, corporate outings, or similar events to boost employee …

The recent ruling by the Finance Court of Lower Saxony (FG Niedersachsen, Case 8 K …