this post was submitted on 23 Feb 2025
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[–] Dremor@lemmy.world 5 points 7 hours ago (1 children)

That's how it is here in France. It is calculated according to the previous year income, so if you get a raise you'll have to pay a little bit more at the end the following fiscal year, but that's often very little. Last time I got a 2500€ yearly raise, I had to align something like... 100€ 😆.

[–] leisesprecher@feddit.org 5 points 7 hours ago (5 children)

Why, though?

I'm in Germany and my employer kind of knows how much they pay me. So they can easily calculate the income tax correctly. It's just assumed that each month's salary is 1/12th of my yearly income and taxed appropriately.

You can literally live your entire life without "doing taxes" even once (though it's a good idea for your individual deductions).

[–] MrsDoyle@sh.itjust.works 1 points 2 hours ago

It's the same in the UK - employer deducts the tax and National Insurance (which pays for health care, state pension etc), and most of the time it's correct.

This year I had to do my own tax calculation because of an inheritance, and it was such a pain! But I got some guidance from the HMRC phone line and filed the return online. It turned out I owed a lot less than I'd thought.

[–] aln@lemmy.world 5 points 7 hours ago

We are taxed on more than just wages. Additionally, the way tax law is structured here, because of S-corporations and partnerships (structures which own/run companies), these both flow through activity to the individual tax payer which is then taxed at that level.

If it's just wages, lots of Americans work 2, 3, or even more jobs (not just during the year, but at once). Our tax rate tables are set up so you calculate them based on you having one job, so when we start a job it's calculating it at only that one income.

[–] rumschlumpel@feddit.org 1 points 6 hours ago* (last edited 6 hours ago)

Even in Germany you typically get a little money back if you do your taxes as a regular employee. Though that's far, far better than owing the state money at the of the year.

[–] asdfasdfasdf@lemmy.world 1 points 7 hours ago (1 children)

Might be because of tax brackets and not knowing ahead of time if you're getting a raise. E.g. maybe you are the top of some bracket for most of the year, and youre on track for not surpassing it by the end of the year. Then you get a raise near the end and it bumps you over.

Should they take a huge amount off your last couple payslips? Or just let you pay it in taxes later?

Might be better for some people to pay via taxes instead of automatically losing the money for that month.

Just a guess though.

[–] leisesprecher@feddit.org 2 points 6 hours ago

That's a solved problem, though (and I described it in my comment). If you always assume the current month's payment is 1/12th of your yearly salary, you already pay according to the tax bracket relevant to you. You might overpay a bit, but most people don't double their income within a year, so the refund is typically not that much.

[–] Dremor@lemmy.world 1 points 7 hours ago* (last edited 7 hours ago)

I agree that the employer part should be more automatic, but don't forget it may not the the only income. You can have properties, you can have share and dividends. All that do not happen all at the same time, so it is far easier to calculate on an earlier snapshot than continuously recalculate every time something changes.