In this article, we provide you with an overview of best practices at the turn of the year.

Accident insurance

Perform master data retrieval

Generally, accident insurance companies in Personio are already set up for you and do not have to be added manually. Nevertheless, there may be reasons for retrieving the master data:

1. the reimplementation of Personio Payroll
2. an annual master data retrieval as part of year-end work

The configuration of accident insurance companies includes the retrieval of the master data, the maintenance of the risk rate positions and the required information in the employee profiles.

Please note:
If you have already performed a master data retrieval for 2024, Personio takes over the data and automatically performs the master data retrieval for 2025. 

To retrieve the master data and create a new accident insurance company, proceed as follows:

1. Go to Payroll > Manage and select Accident Insurance Companies.
2. When using multiple companies, you must perform a master data retrieval for each company. If it is a single company, only a single retrieval is usually necessary. If necessary, select the appropriate company.
3. Then select the year for which you want to create the data.
4. In the Accident Insurance Providers tab, click Add Accident Insurance Company for the corresponding year.
5. Fill in the necessary information.
6. Add the accident insurance company.

After a successful master data retrieval, the data is displayed in the table and the Remove field is grayed out under the actions. Changes to the PIN are possible should you be informed of this by the accident insurance company.

If the risk rate positions change during the year, you will be notified by the accident insurance provider to perform a new master data retrieval. 

Review and assign risk rate positions

After a successful master data retrieval of the insurance provider, the risk rate positions can assign the employees:

1. Switch to the Risk Rate Positions tab and select the appropriate employee.
2. Click on Change. 
3. Fill in the required information.
4. In some cases, an employee may have two risk rate positions. You can define the percentage value for this. 
5. Add the time period.

In the case of multiple companies, this action must be carried out for each company.

Update employee profiles

When creating a new employee, you can enter the corresponding data in the employee profile in the Information tab under Accident Insurance. Note the following attributes:

• Mandatory Accident insurance
• Calculation method 

Missing data in employee profiles are displayed as a warning in payroll and must be completed by the end of the year to ensure a correct salary statement and annual accident insurance reporting.

Social insurance

Check annual earnings threshold

Employers are required to check annually whether employees are still subject to compulsory insurance or are now exempt from compulsory insurance. An exemption from compulsory insurance means that the obligation to have statutory health insurance no longer applies. Employees will then have the option of taking out voluntary statutory or private insurance. 

The following salary components are used in the check:

• current gross salary of the employee, and
• all regular one-off payments such as Christmas bonuses, vacation benefits, and flat-rate overtime.

For a list, see our article on checking the annual earnings threshold.

Check the salary components via the employee profile in the Salary tab or via the employee list as follows:

1. Go to the employee list.
2. Click the three-dot options button in the top right corner and select Export List.
3. Under Table Columns, select the salary components to be checked.
4. Export the list.

To review the annual earnings threshold, the fixed salary is multiplied by 12. If the salary exceeds the threshold, the exemption from compulsory insurance applies at the end of the calendar year. After the December payroll, you need to review the salaries and inform the employees.

Changes in the employee profile

If employees provide feedback and are now voluntarily covered by statutory or private insurance, navigate to the appropriate employee profile and adjust the following attributes:

• The employee has voluntary statutory health insurance
  • social insurance group and type of health insurance remain unchanged
  • change the social contribution group key for health insurance to "9"
  • update the employer subsidy calculations for health insurance
• The employee has privately insurance
  • change the type of health insurance to "Private"
  • change the social contribution group key for health and nursing care insurance to "0"
  • determine the contributions to private health and nursing care insurance
  • adjust the calculation of the employer subsidy for health insurance
  • if existing, add the contribution to basic health insurance (see certificate Section 10 (1) No. 3 EStG)

At the end, review any payroll changes to ensure that social contribution keys and employer subsidies are correct.

Check sickness contribution (U1)

Check annually how many full-time employees are employed in your company. If you have more than thirty full-time employees, select whether your company participates in reimbursement scheme U1 or is exempt. Proceed as follows:

1. Go to Payroll > Manage and open the Social Insurance section.
2. Under Participation in U1, select the appropriate option.
3. Set the effective date. Example: January 1, 2025.
4. Save your entry.

Edit contribution rates for health insurers

If the contribution rate of a health insurer changes as of 1 January, follow these steps:

1. Go to Payroll > Manage and open the Health Insurers section.
2. Click on the corresponding health insurer in the list to open the detailed view.
3. Click Edit.
4. Set a new effective date and adjust the contribution rate under Contribution Level.
5. Save your entry.

Income tax (Lohnsteuer)

Change payroll tax filing period

To change the payroll tax filing period, follow these steps:

1. Go to Payroll > Manage and open the Tax section.
2. Click Edit.

3. Select the appropriate frequency of tax notifications. The selection depends on how much payroll tax your company pays to the tax office each year.

   Important key figures

   • Annual: up to 1080 euros
   • Quarterly: 1080.01 euros to 5000 euros
   • Monthly: from 5000.01 euros
4. Set the effective date. Example: January 1, 2025.
5. Save your entry.