Brief Information: Tax Qualification of Employer-Paid Social Security Contributions and Payroll-Related Costs

The Wage Tax Protocol 2003 clarifies the following in this regard:

Core principle
Employee social security contributions paid by the employer represent a benefit from the employment relationship and must be added to the taxable base and the base for employer contributions, employer surcharges, and municipal tax.

:: Back payment on the basis of a GPLA
The abbreviation means: Joint examination of wage-dependent levies.

• The The employer bears (usually) the Back payment from employee contributions to social insurance. In this case, these are part of the assessment basis for the German solidarity surcharge (Solidarity Surcharge), the German solidarity surcharge (Solidarity Surcharge) and local income tax (KommSt), which must be increased in the calendar month of payment. From a payroll tax perspective, this has no consequences because the social insurance contributions reduce the payroll tax assessment basis as income-related expenses.
• The Employer recourse regarding the employee's share of paid contributions. In this case, there is no wage payment and the contribution bases are not to be increased.