The Insolvency benefit surcharge (U3) is a statutory levy used by employers to help finance the funds for insolvency benefits. Insolvency benefits serve to secure outstanding Arbeitsentgeltclaims of employees in the event of their employer becoming insolvent.
What is the insolvency benefit levy (U3)?
The insolvency money levy is collected monthly from employers who are generally liable to pay it. The funds are used in particular to finance the insolvency money, which is paid by Bundesagentur für Arbeit.
The designation U3 is used in the accounting and contribution procedure as an abbreviation for the insolvency benefit levy.
Die Insolvenzgeldumlage wird von den Arbeitgebern gezahlt.
In principle, employers are obliged to pay the insolvency benefit levy. However, employers designated by law are not included in the levy. These include, amongst others, the federal government, the federal states, municipalities, certain public-law legal entities and private households.
The levy is borne solely by the employer.
How is the insolvency allowance levy calculated?
The insolvency allowance levy is charged as a percentage of the relevant Remuneration. As a rule, the basis is the Remuneration according to which the contributions to the statutory Pension insurance for employees are measured or would have to be measured.
The applicable levy rate may change for individual calendar years.
How is the U3 contribution paid?
The insolvency allowance levy is paid to the competent collection agency together with the total social security contribution.
Although she is not part of the overall social security contribution herself, she is paid along with it in the contribution procedure.
U1, U2 and U3 – what is the difference?
The insolvency benefit levy is one of the levies U1 and U2 to distinguish.
U1 and U2 relate to the reimbursement of certain employer expenses in the event of incapacity to work or maternity, respectively. U3, on the other hand, serves to finance insolvency benefit.
Connection to the Payroll
The insolvency money levy is within the scope of Payroll considered as an employer contribution and shown in the contribution procedure.
