Wage tax ("Lohnsteuer") is a special form of income tax. It shall be paid as a deduction from wages. The employer is liable to submit the payroll tax to the tax office. The employer is obliged to withhold payroll taxes on every wage payment by electronic means and to transfer them to the tax office. This has to be done no later than the 10th day after the end of the wage tax registration period. The payroll period is basically the calendar month.
In addition to the tax on wages, the solidarity surcharge and the church tax will be forfeited and deducted for the employee. In Bavaria the church tax rate is 8 percent, the solidarity surcharge is all-Germany at 5.5 percent. The assessment basis is the wage tax amount.