This article explains how to manage the disabled persons tax with Personio Payroll.

Before you begin

• Permissions: To manage the disability tax, you need administrator rights in Personio Payroll.
• Effects: The management of the disability levy must be carried out using the external software IW-ELAN, and Personio will support you with this.

About necessary measures

The disability levy is a legal obligation for employers with at least 20 employees. Organizations must either employ a certain quota of severely disabled people or pay a compensatory levy. Proper management is crucial to meeting legal requirements.

To manage the disability tax with Personio Payroll, you must complete the following steps:

1. Set up attributes: Record all relevant information about severely disabled employees in Personio to create a complete database for reporting. This includes degree of disability, equal status, and other legally relevant information.
2. Manage additional leave: Severely disabled employees have an entitlement to additional vacation days. Proper management ensures that these entitlements are met and, at the same time, documented for reporting purposes.
3. Create reports: Use Personio's reporting functions to compile the data required for the disabled persons tax. This data forms the basis for the annual contribution statement to the Federal Employment Agency.
4. External reporting: Since Personio does not fully reflect the disability tax, you will need to work with external systems and your tax advisor. The available tools will support you in making a correct contribution statement.

Please note:
Legal changes, new allowances, and refreshed forms require regular customization of your processes. Stay informed about updates to ensure compliance.

Create attributes and fill them in the profile

If you employ severely disabled employees, you must create the corresponding attributes in Personio and enter the required information in the employee profile. You must create the following employee attributes for this purpose: 

To create and populate the attributes, proceed as follows:

1. Create the attributes described above for severely disabled employees.
2. Fill in these attributes in the corresponding employee profiles.
3. Ensure that all relevant information is recorded in full. You can do this, for example, via the People list.

Establish additional leave for severely disabled employees

When a severely disabled employee is hired, the additional leave must be approved. To do this, you can create a new absence with a time off policy for additional leave. This has the advantage that the absence data can be evaluated. To do this, follow the instructions in our articles on creating absences and time off policies.

Create evaluations for the severely disabled tax

Personio can create reports for the disability tax to support your reporting.

1. Create a report for the recorded data.
2. Download the relevant information.
3. Ensure that all required data has been entered completely.

Prepare reports for authorities

To report the disability tax correctly, you should work with your tax advisor.

1. Close with your tax advisor to create the severely disabled tax.
2. Use the help provided in this article to fill out the form.
3. Please note the turn of the year and the actual lack of implementation in the system.
4. Find out about annual updates to the tax for severely disabled persons.

FAQ