Taxes on commission?
Hello everyone,
I hope someone can explain to me what my taxation will look like.
I'm unmarried (still) and work in sales. My fixed salary is just under €5,000 per month, and I'm about to receive my first quarterly payment.
At the end of January I receive €900 gross commission, and by February almost €10,000.
If I currently receive just under €3,000 net on a fixed salary of €5,000, I pay 40% taxes, etc.
Will I receive the €10,000 commission, which is €15,000 gross plus my fixed salary, at the same tax rate? Or will I immediately slip into a higher income tax bracket? Or will my salary be totaled at the end of the year, and I'll have to pay a lot of back taxes because I actually owe more than 40% in taxes, but that can only be calculated with my next tax return…?
Thanks for your help….
(1 votes)
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Provisions are considered to be wages if the benefits underlying them are carried out within the framework of a service relationship. If the commissions are paid by a third party, the employer is still obliged to keep social security contributions and wage tax.
The commission payment is taxed as a continuous wage.
However, if the commission is granted only once, without any reference to certain pay periods, it must be taxed as other reference.
You want to know the exact deductions, just feed a gross net calculator.
Okay, that means the increased income is automatically calculated with a higher tax rate – thank you!
Your tax rate is calculated according to your income. The more income you have, the higher your tax rate. That’s called progression. The tax rate is at least 14% and a maximum of 45% for an annual income of over 277,000 (Legal)
Your tax class depends on your family status and regardless of income. With you as a slave, this is the tax class 1.
Your question will help you with an income tax calculator https://www.steuerschroeder.de/Control Calculator/Income Tax Table.html
If you also have additional income-related costs, such as your social security contributions, then take a gross net calculator https://www.brutto-netto-computer.info/
If you get your bills as a payroll, you’ll be deducted from the Stneuern and Social Security directly and you don’t expect any repayments at the end of the year. However, you should make an income tax statement for such fluctuating incomes, because your entire annual income is considered and you pay less taxes than monthly for your average salary if you slip through the commissions in the progression.
Provisions are part of it wages – so easy.
Thank you – only unfortunately does not help me with the question.. Good evening!
Of course it helps – but if you don’t want to use a computer…
You will have to explain to yourself why you ask and ask for the only helpful question with…
but no matter – a lot of fun in the payroll.
your answer doesn’t make any sense;)
But, thank you
The income tax is an annual tax.
When you enter the numbers into a computer, you know how high this is.
What is not to understand?
no – if I earn 60k in the year, I have almost 40% levies. If I make another 10k 4x a year, I’m at 100k a year, where I already have almost 42% levies. My question is specific: Will the 10k of commission also be calculated with 40% levies, or will my total salary be considered in the month and taxed on the basis of the month etc?