Differences in accounting Topic: Salary

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Differences in accountingTopicSalary
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Overview Salary
Differences between employee and worker ? progression levels
negotiations  between employers and employees unions ? no progression levels
law-base Contract of employment ? tax rate 22 ? untaxable amount 128 ? no limit for social security insurance social ? security tax is 33
SGB (social legislation) as law basis ? Progression level off 10,000 23, off 15,000 33.5, off 26,000 50 ? Mini job
Agreement Law ? progression level 9,0 - 14,0 - 19,5 - 25,0 - 32,5 ? you may have bonus
law-base work law ?progression level 18, 36 ? noncontributory incomes ? tax and contribution obligations of the employer
national insurance 11, Starting tax rate 10, Basic Tax Rate 22 and Higher tax rate 40
IFRS
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Details Austria

• Law base UGB
• Sosial security insurance 18 employees, 18.2
  worker
• Extra pay christmas extra pay and holiday extra
  pay as 13 and 14 salary
• Special tax rates for extra pay 17.2 worker,
  17 employees
• Ancillary wages Service giver contribution,
  addition to the service giver contribution, local
  tax, underground tax (Vienna)
• 1/6 border for special payments
• Free allowances with income tax, comuter lump
  sum, union dues
• Security insurance includes Unemployment
  insurance, health insurance, accident insurance,
  pension insurance
• Non-contributory one repays Travel costs
  remuneration, environmental bonus, family
  allowance, contributions to coworker precaution
  cashes
• Insignificance borders 323.46 - 3630,00 If
  an employee should fall under the insignificance
  border, then it has accident insurance to only
  pay (also only accident-insured)

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2. Details Austria

• Pattern of the salary statement Wage tax
  assessment basis
• Basic salary gross amount
• other current purchases - wage tax free
  amounts
• bonus - social securtity insurance
  contributions
• gross amount -Free allowance
• - legal departures - union fee
• - voluntarily departures - Pendlerpauschale
• - Other departures Assessment basis
• Family allowance
• net amount

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Details Hungary

• Law-base Work law, laws over the society
  insurance, personnel income taxes and account
  systems
• Progression level
• 0-1.700.000Ft 18, 1.700.000 Ft 279.000Ft 36
  from the part over 1.700.000Ft
• Calculation of salary scheme
• salary
• Auxiliary payment (e.g. the paid vacation,
  the paid celebrations)
• Extra pay (e.g. leader addition, language
  extra pay, layer premium)
• bonus
• over work
• gross wage
• -     legal departures (e.g. personnel income
  tax advance, old age pension insurance
  contribution, health insurance contribution
• -     voluntarily Departures (e.g. trade union
  fee, freiwillige old age pension insurance,
  credit repayment
• sickpay
• family allowance
• Net wage

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2. Details Hungary

• The non-contributory incomes Family allowance,
  educating assistance, meal subsidy, support at
  the beginning of the school, inheritance,
  compensation, scholarships of donations, holidays
  cheque
• Meal coupon is non-contributory to 4500 Ft/month.
  The warm supply is non-contributory to 9000
  Ft/month. Support at the beginning of the school
  is 19,000 Ft/child/jear non-contributory. Holiday
  cheque is non-contributory up to the sum on the
  first day of the yearly of the valid minimum wage
  
• Promotions during the deposit of the ill and old
  age pension insurance, school money promotion,
  personal promotion and promotion of the family,
  insurance promotion, promotion after the
  donations.
• Family allowance
• after 1 child 11,000 Ft/month
• after 2 children 12,000 Ft/person/month
• after 3 or more children 14,000 Ft/person/month
• There is no difference between workers and
  employees during the tax and wage computation.

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3. Details Hungary

• Special tax starting from 1 January 2007, if the
  astringent yearly income exceeds the highest
  border of the pension contribution reason, then
  4 of the part over the border
• All insurance (outside of the health insurance)
  applies to the partial workers.
• The tax and contribution obligations of the
  employer
• 29 social security fee
• 3 employer fee
• 1.5 technical training contribution
• 1950 Ft/person/month health insurance fee (in
  the year 2006)

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1. Details Denmark

• When salary is paid to employees the firm pays
  tax deducted from income at source, contributions
  to the labour market supplementary pension scheme
  and labour market contributions.
• Tax deducted from income at source The basis for
  the tax deducted from income at source is the
  employees income, tax deduction and tax rate.
  Income taxed at source is the total salary
  including overtime pay and deductible car,
  telephone, etc., but excluding contributions to
  the labour market supplementary pension scheme,
  labour market contributions, special pension
  savings and any contribution from the employers
  trainee reimbursement scheme (AER) and tax-free
  traveling allowance.
• Tax deducted from income at source is calculated
  as a percentage of the income taxed at source
  deducted from the employees tax deduction. The
  percentage and tax deduction appear on the
  employees tax card which is renewed annually.
  The employer can also receive tax card
  information electronically from the tax
  authorities.
• At the end of the year the employee must have a
  statement for paid salary, withheld tax deducted
  from income at source, labour market
  contributions, etc. a so-called information
  slip.

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2. Details Dänemark

• ATP - Contributions to the labour market
  supplementary pension scheme
• ATP stands for contributions to the labour
  market supplementary pension scheme which goes
  towards the employees pension. ATP is paid out
  when the employee reaches 67/65 years depending
  on whether the employee was born before or after
  1 July 1939. ATP can also be paid out as a lump
  sum if the total payment is very low.
• The employer must pay the ATP contribution for
  all wage earners between 16 and 66 years of age
  and who work at least 9 hours per week. The
  amount of the ATP contribution depends on the
  number of hours the wage earner works during each
  salary period. The employer pays 2/3 of the ATP
  contribution while the wage earner pays 1/3.
• The ATP contribution for a full-time employee in
  a private company is DKK 149.10 per month (2003)
  for the employer and DKK 74.55 (2003) for the
  employee.
• The wage earners part of the ATP contribution
  is deducted from each salary payment and the
  employer pays both the companys and the
  employees share of the ATP at the end of the
  quarter.
• The employer is liable for the full ATP
  contribution even if the employer accidentally
  neglects to withhold the employees share.

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3. Details Dänemark

• At the end of the year you must state who you
  have paid ATP contributions for. You must
  therefore save any information about the
  employees CPR (civil reg. no.) number and the
  amount of the ATP contribution.If the
  ATP-insured dies leaving a spouse and/or children
  under the age of 18 years, the ATP is paid out in
  lump sum to them. Labour market contributions
• The labour market contribution covers several of
  the states social expenses for, e.g., benefits,
  adult vocational training, sickness benefits,
  voluntary early retirement pay, rehabilitation,
  flextime, etc.
• The labour market contribution, called
  AM-contribution, which the employer must deduct
  from the employees salary, is 8 (2003) of the
  gross earnings plus the value of certain employee
  benefits, but minus ATP and any pension
  contributions.

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4. Details Dänemark

• Paying tax, etc. Tax deducted from income at
  source and employee contributions are paid to
  SKAT (tax). The tax and contributions must be
  declared and paid on special payment cards that
  SKAT sends to the employer.
• Tax deducted from income at source and labour
  market contributions that are deducted for one
  month must be paid no later than the 10th of the
  following month. Payments for December can
  however wait until 17 January.

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Details Finland

• When salary is paid to employees the employer
  has to deduct the witholding tax, employees
  pension and unemployment insurance fee from the
  salary. The employer is also paying the pension
  fee and the unemployment insurance fee of its own
  from the amount of salary. The social security
  fee is paid at the same time from the amount of
  salary by the company.
• law-base Agreement Law
• collective agreements General Labour Agreements
• Progression levels
• 12 200 - 17 000 9,0
• 17 000 - 20 000 14,0
• 20 000 - 32 800 19,5
• 32 800 - 58 200 25,0
• 58 200 32,5

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2. Details Finland

• Salary
• benefits, provision, bonus, surcharges
• gross basis
• - lawful debits (income tax, social insurance/
  national insurance)
• - voluntary debits (union fees)
• net pay
• non contributory hire/remuneration
• expenses substitute
• mud bonus
• family assistance payments
• basis of calculation for the income tax
• gross basis
• - wage tax free amounts
• - social insurance
• - allowable expenses
• - union fee
• basis of assessment for income tax

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3. Details Finland

• No benefits concerning tax rates for sole earners
  without children or with 1, 2 or 3 children
• Workers and employees are treated similarly. In
  Finland taxes get higher when one earns more.
• In Finland you may have bonus, it depends on
  companies where youre working. Some employees
  and workers can have a special vacation payment,
  which is up to 50 from vacation salary.
• Part-time workers have all the same insurances as
  full-time workers.

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Details Germany

• SGB (social legislation) LStG (wage tax law)
  BGB (civil GB) as law basis
• Progression level off 10,000 23, off 15,000
  33.5, off 26,000 50
• There are basic wage rates for single ones and
  splitting tariffs for married one. For salary
  statement tax schedules IV are determining. The
  entry-level tax rate amounts to 15 the highest
  tax rate 42 beginning with 7.664 linear rising
  to 52,164 (married double amounts)
• Salary
• Content
• commission, bonus, overtime, premiums
• gross basis
• - legal deliveries (e.g. social security, wage
  tax)
• - voluntarily contributions (e.g. union fee)
• family contributions
• net salary
• no taxfree family contributions. This
  contribution is added to the content and is
  contained thereby in the basis for tax and
  insurance

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2. Details Germany

• Taxfree one repays Summing and additional pay
  for nightwork and holiday addition
• Insignificance Mini job to 400
• Wage tax assessment basis Gross salary a less
  taxfree income is the basis for wage tax and
  social security
• Family allowance Regulated by tax schedule II
  However educator discharge contribution 1,308
  /year
• During special payment 1/5 regulation

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Details England

• In the UK this is very complicated but the
  general consensus for 2006/07 tax year. Dependant
  an circumstances the government gives people an
  amount that they can earn without paying tax. The
  next 2020 is taxed at 10 the next 29380 is at
  22 up to and then anything over 32,400 is taxed
  at 40.
• Again the government give an allowance and then
  we have national insurance deducted at 10.
• Taxation on Businesses
• Sole Traders and Partnerships are taxed as
  individuals as above.
• Limited companies are taxed under corporation tax
  laws
• Most companies are taxed at 30 in the UK. But
  if they class as a small company they can deduct
  marginal relief at 19.

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Details Estonia

• law-base Contract of employment
• collective agreements just in big enterprises but
  usually not
• In Estonia the tax rate is for 2006 is 23. For
  2007 it is 22. The untaxable amount for 2006 is
  2000 kroons per month (about 128 euro).
• scheme for the calculation of salaries
• salary
• bonus 
• Gross amount 
• - lawful debits (income tax, unemployment
  insurance premiums, funded pension payment)
•   net pay
• separate system of family assistance payments
• no limit for social security insurance. The
  social security tax is 33

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2. Details Estonia

• basis of calculation for the income tax
• Salary
• Bonus
•  Gross amount
• -Obligatory pension payment (2 from gross
  amount)
• -Unemployment (0,6 from gross amount)
• -Untaxable amount (2000 kroons)
•  Taxable amount
• -Income tax (23)
•  Net amount
• No differences between worker and employee
  concerning calculation of income
• special payments like Christmas bonus or extra
  vacation payments depednds on the firm.
• Full or part-time jobs - its not important. The
  same obligatory of insurance.
• unemployment insurance, pension, social
• unemployment insurance premium 0,3 and social
  tax 33