Overview
If an employee gets married, their Tax Status will not necessarily change. As explained above, not all married employees are eligible for the married rates. If an employee gets married and maintains the same Tax Status, one member of the newly wed couple is eligible for a tax rebate. But how does this work?
Permissions
To set an employee as the Non-Responsible Spouse, you will need the Manage Employee Payroll Details permission or the Manage All Employee Data permission. To add the employee to payroll, you will need the Manage Payroll permission.
How it works
Upon marriage, one of the spouses is chosen to be the Responsible Spouse, whilst the other is the Non-Responsible Spouse. The responsible spouse is chosen by the couple. The non-responsible spouse will have 2 FS3s for the month of marriage (one before the marriage date, and one after). The responsible spouse's FS3 will not be split (there are no changes in payroll for such person).
Upon the date of marriage, the non-responsible spouse's tax calculation resets to €0. Therefore, this spouse will have 2 payslips and 2 FS3s for the year (for that company): 1 will be from the beginning of the year (or engagement date) until the day before marriage; the other will be from the date of marriage until the end of the year (or earlier if the employee is terminated). For the second payslip and FS3, the tax resets to €0, so the employee will enjoy a period of less tax (up to €12,000 is tax free for employees under the single tax status, up to €15,000 is tax free for employees under the married tax status, and up to €13,000 is tax free for employees under the parent tax status).
Setup
To set up an employee as the non-responsible spouse, please follow the below steps:
- Search for the employee from the People section or from the search bar on the top, and go to the employee's Details tab.
- Scroll down until you see Payroll.
- Select Married or Civil Union from the dropdown menu in the Marital Status field.
- Tick Not the Responsible Spouse.
- Fill in the spouse's ID card number and the date of marriage.
- Press Save.
We recommend that the above steps are actioned during the same month of the marriage (before the relevant payroll is closed). Doing so after the payroll is closed will not result in 2 payslips being generated. The system will still create 2 FS3s.