What is meant by Digital salary statement?
The term "digital wage report" refers to the electronic submission of wage and employment data from a company to the social insurance carriers in Germany. This submission is necessary to calculate and settle contributions to accident insurance, unemployment insurance, health insurance, and pension insurance. The digital wage report has replaced the paper-based submission and has been mandatory to be filed electronically since 2017.
Typical software functions in the area of "digital wage report":
- Automated Submission: The software automatically generates and sends the wage report to the relevant social insurance carriers.
- Data Validation: Verification of the entered data for accuracy and completeness to avoid incorrect submissions.
- Integration with Payroll Accounting: Direct integration with payroll systems, so all relevant data is automatically transferred.
- Notification System: Automated notifications upon successful transmission or if inquiries are raised by social insurance carriers.
- Archiving: Long-term storage of wage reports to reference previous submissions and meet legal requirements.
- Report Generation: Creation of reports documenting the status of submitted wage reports.
- Security Protocols: Ensuring data security through encryption and access restrictions.
- Interface to Social Insurance Carriers: Direct connection to the communication platform of the social insurance carriers for electronic submission.