Filing and paying wage tax (Lohnsteuer): obligations for employers

Anyone who employs staff automatically takes on an additional obligation towards the tax office: the wage tax (Lohnsteuer) withheld from employees must be filed and paid on time. This obligation applies regardless of how many people the company employs.

In short: Under § 41a EStG (the German Income Tax Act), employers are obliged to file the wage tax withheld from their employees electronically with the tax office and pay it by the 10th of the following month. The filing cycle – monthly, quarterly or annual – depends on the amount of wage tax paid in the previous year. The employer is personally liable for correct payment.

Who is subject to wage tax filing?

Every employer who has employees with wage-tax-liable pay must file and pay the wage tax, regardless of company size or legal form.

The obligation arises automatically with the first payment of wages or salary to an employee and continues as long as the company employs staff. Whether a business has a single employment relationship or several full-time positions is irrelevant to the basic filing obligation – only the filing cycle depends on the amount of wage tax to be paid. For founders and growing companies, this means that as soon as the first employment contract is signed, the filing obligation is running. Which further obligations apply to your company as an employer is shown by a tool such as Company Audit.

What do employers need to do in practice?

For each payroll period, employers determine the wage tax withheld, file it electronically with the tax office and pay the amount on time.

Besides the wage tax itself, the solidarity surcharge (Solidaritätszuschlag) and, where applicable, the employees' church tax are part of the filing. Submission is made exclusively electronically, for example via ELSTER or payroll software with the corresponding interface – a paper filing is not provided for. In addition, payroll accounts must be kept for each employee and retained together with the filings so that they can be presented in the event of a wage tax audit. In practice, many companies handle these tasks through a payroll bureau or specialised payroll software, since calculation, filing and deadlines can be automated there.

By when and how often must you file?

The wage tax filing is due by the 10th of the following month; how often per year it must be filed depends on the individual filing cycle.

The cycle depends on the amount of wage tax paid in the previous year: above 5,000 euros, filing is monthly; above 1,080 euros, quarterly; below that, an annual filing is enough. The deadline – the 10th of the following month – applies equally to all three cycles; only the period being settled differs. Newly founded companies should estimate the likely cycle early, so that the first filing does not come as a surprise. If the payroll total rises significantly during the year, it is worth reviewing the current cycle, since the relevant threshold may shift in the future.

What are the risks of late or incorrect filing?

If the wage tax is filed or paid late, late-payment surcharges (Säumniszuschläge) apply; in addition, the employer is liable for the wage tax correctly withheld and paid.

This liability is strict: it applies regardless of whether the error arose at your own payroll bureau, in external payroll software or in the calculation process itself. Filing and payment should therefore generally not be postponed, since delays can, besides the late-payment surcharges, also increase the risk of closer scrutiny by the tax office. Anyone who runs into payment difficulties because of a cash squeeze should seek a conversation with the tax office early rather than omit the filing altogether.

Wage tax filing step by step

1. Determine the filing cycle based on the previous year's wage tax (monthly, quarterly or annual).
2. Calculate the wage tax, solidarity surcharge and, where applicable, church tax for each payroll period.
3. Submit the wage tax filing electronically by the 10th of the following month.
4. Pay the withheld amounts to the tax office on time.
5. Retain payroll accounts and filings for the wage tax audit.

These five steps repeat monthly, quarterly or annually depending on the cycle. A payroll bureau or payroll software usually handles the implementation in an automated way in practice – but responsibility for correct and timely payment always remains with the employer.

Frequently asked questions

What is the wage tax filing?

The wage tax filing is the electronic notification to the tax office of the wage tax withheld from employees, combined with timely payment of the amount in accordance with § 41a EStG.

How often must wage tax be filed?

Monthly if the previous year's wage tax exceeds 5,000 euros, quarterly if it exceeds 1,080 euros, otherwise annually. In all three cases the deadline is the 10th of the following month.

Who is liable if wage tax is paid incorrectly?

The employer is liable for the wage tax correctly withheld and paid. In case of delay, late-payment surcharges also apply, regardless of who prepared the payroll.

Must the filing be made electronically?

Yes, § 41a EStG prescribes electronic submission of the wage tax filing, for example via ELSTER or connected payroll software.

How long must payroll accounts be retained?

Payroll accounts and the associated filings must be retained so that they can be presented in full during a wage tax audit. A payroll bureau or payroll software usually handles calculation, filing and retention in an automated way in practice.

Source: § 41a EStG. This article is general information and does not replace legal advice in individual cases. As of: July 2026.