Umlage U1 is a legal compensation procedure for employers. Through this procedure, participating employers receive partial reimbursement of the expenses incurred due to Wages continuation in case of illness.
Basics
If employees fall ill and are unable to work, employers are obliged to continue paying their wages for a specified period. This obligation arises from the statutory regulations on continued remuneration.
The U1 levy is intended to provide financial relief for smaller employers. Through regular levy contributions to the health insurance funds, companies can receive reimbursement for a portion of the costs incurred during periods of illness.
Legal framework
Die Umlage U1 basiert auf dem Employer Compensation Act (AAG). Employers who meet the statutory requirements are obliged to participate in this pooled funding arrangement.
The procedure is carried out via the respective health insurance providers of the employees. Employers pay levy contributions and can, in return, submit claims for reimbursement of wage continuation costs incurred.
Classification in payroll
The U1 levy is part of the statutory offsetting procedure in payroll accounting.
- Payroll accounting
- Wages continuation
- Apportionment method
- U2 Levy
- Insolvency benefit surcharge (U3)
The correct calculation and reporting of apportioned contributions take place as part of the monthly payroll.
Practical relevance
In practice, levied contributions are together with the Social security contributions paid to the health insurance companies. In cases of continued pay due to illness, the employer can subsequently claim reimbursement.
The process is generally handled digitally via the electronic social insurance reporting procedure.
Typical sources of error
- Incorrect allocation of levy obligations
- Incomplete details on reimbursement applications
- Incorrect calculation of continued remuneration
FAQ
Who participates in the U1 levy?
The pay-as-you-go system is primarily aimed at smaller employers. The participation requirements are regulated by law.
Who carries out the U1 levy?
The procedure is carried out through the employees' health insurance providers.
Conclusion
The U1 levy is a statutory compensation scheme that supports employers with the costs of continued pay in cases of illness. Correct implementation occurs within the payroll process and the social security reporting procedure.
Brasser Accounting Solutions GmbH is a specialised accounting service provider and part of a corporate group with Quint GmbH (tax consultancy/auditing) and Service Place Årjäng AB (Swedish tax office). BAS exclusively performs services according to § 6 No. 3 and 4 StBerG and does not provide tax or legal advice.
