4 Things To Do If You Get An Employment Tax Notice

Germany is considered as one of the most employee friendly countries and hence the labor laws, employment tax regulations etc. are strictly followed. In such a scenario, there can be occasions when you get an employment tax notice and the first obvious reaction is to panic. But panicking is not necessary.

Notices are not always for serious issues. They could sometimes be just a clerical error or payment discrepancy that can be easily resolved. Often it could be a simple fix but sometimes the problem in hand can be complex. Having an Employer of Record in Germany to deal with such matters can be a good idea. However, if you are handling the payroll yourself, all you need to be is active and transparent. Here are 5 things you can do:

1. Identify The Sender - The foremost thing to do whenever you receive such notice is confirm that it has come from a legitimate source and is not a fraudulent move to gather your company’s sensitive data. Review the notice carefully and look for anything suspicious. For example, a payment is demanded in a particular way, or the list of the social security numbers of your employees are asked in a particular format. Always check for the source and make sure it has come from a legitimate government authority before you proceed.

1. Don’t Panic - Do not panic. Always remember you are not the only one who has received such notices. These notices are issued to all who have some problems in their employment tax filing. So do not panic and stay calm and active.

1. Read The Notice Thoroughly - If the source is actually legitimate, then read the notice line by line carefully and look for step by step instructions in order to understand the next course of action. It will contain what went wrong and how to fix the issue in a thorough manner. Giving the notice a thorough read would help you understand what needs to be done. For example it could ask you to update some information or re-submit some paperwork etc.

1. Contact Your Hired Payroll Company In Germany Immediately - If you already have a payroll company working for you, all you need to do is contact them immediately and send them the copy of the notice. The in-house tax experts can usually resolve the matter quickly and easily. Having an expert to hand on such matters is always helpful as it helps you to calm down and,if the issue is complex, it is tackled professionally and handled completely. In fact, the chance of receiving an employment tax notice is very low if you have a third party service provider in place.

1. Mark The Deadline To Reply To The Notice In Your Calendar - Among all the chaos of receiving a notice and other happenings, the deadlines to submit an answer to the notice could be missed. This could further complicate an easily resolvable issue and hence should be avoided. Whether the issue is big or small, missing deadlines can cause a lot of unwanted trouble for you. If you have a payroll company on board, you should tell them the given deadline and they would take care of the rest. But still, just as a caution, setting a reminder on your calendar won’t be such a bad idea. It would ensure that the reply to the notice is on or before time and no deadlines whatsoever are missed in the process.