What is '1%-method' in SAP PY-DE - Germany?

1%-method - Overview

• Component: PY-DE

• Component Name: Germany

• Description: Regulation in the German tax convention in which the imputed income of a passenger car is applied with a monthly 1% of the gross list price of the passenger car, rounded to a full 100 EUR.

1%-method - Details

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  Key Concepts: 
  The 1%-method is a payroll calculation method used in Germany for calculating the tax-free allowance for employees. It is based on the employee's gross salary and is calculated by multiplying the gross salary by 1%. 
  
  How to use it: 
  The 1%-method is used to calculate the tax-free allowance for employees in Germany. The allowance is calculated by multiplying the employee's gross salary by 1%. This amount is then deducted from the employee's taxable income. 
  
  Tips & Tricks: 
  It is important to note that the 1%-method only applies to employees in Germany. It does not apply to other countries or jurisdictions. Additionally, it is important to ensure that the correct amount of tax-free allowance is calculated for each employee. 
  
  Related Information: 
  The 1%-method is part of the PY-DE Germany component of SAP software. This component provides a comprehensive payroll solution for German companies, including the ability to calculate taxes and allowances using the 1%-method. Additionally, SAP provides a range of other payroll solutions for different countries and jurisdictions.