Understanding the Issue
In cases where a two-child family includes a mother who is a KÉTAK employee and eligible for family tax benefits, the size of her income may prevent her from fully utilizing the family tax allowance alone. Instead, she can only claim this benefit jointly with her spouse. This raises the question: How can the unused portion of the family benefit be shared with the spouse, and under what circumstances can the father also claim the family contribution allowance?
Why This Matters for Employers and Business Owners
Employers and business owners must understand the mechanics of family benefit allowances to properly manage payroll deductions and inform employees of their potential benefits. The intricacies of joint benefit claims and contribution allowances influence net salaries and employer contribution calculations. Comprehension of these regulations ensures compliance with tax and social security rules and supports accurate employee compensation management.
Details of the Benefit Sharing Mechanism
If the mother’s income does not allow her to apply the entire family tax allowance against her personal income tax base, she can claim a portion as a family contribution allowance, effectively reducing the monthly health insurance contribution base by up to HUF 94,350. The remaining unused tax benefit portion can be shared with the spouse.
The father may also be eligible to claim this family contribution allowance if, when sharing the family benefit, an unused allowance arises in his personal income tax due to other personal allowances he uses (such as the individual tax credit). The family contribution allowance is jointly applicable, and spouses declare this shared use accordingly.
Notably, personal tax credits specific to mothers raising two, three, or four children must be applied prior to the family tax benefit and can be claimed even mid-year when calculating tax prepayments.
The total family tax benefit is determined by the number of dependents and beneficiaries. The family contribution allowance portion is available if the total family tax benefit exceeds the consolidated taxable income base. In that case, 15% of the portion exceeding the taxable income base may be claimed as a family contribution allowance, provided the person is eligible under the Personal Income Tax Act and insured according to social security regulations.
Conditions for Eligibility
Only individuals who qualify under the Personal Income Tax Act and are insured (such as employees) have the right to claim the family contribution allowance. Income that is tax-exempt but forms the basis for contributions cannot be used for claiming this allowance.
It is essential to evaluate the father’s income to determine his eligibility for utilizing the family contribution allowance when the benefit is shared between spouses. This involves assessing data according to the Social Security Act.
Implications and Practical Steps
Business owners should ensure payroll systems can accommodate shared family benefit claims and provide accurate calculations of health insurance contributions and tax deductions. Advising employees on the possibility of sharing unused family tax deductions can optimize their net income and ensure benefits are fully realized within legal limits.
Employers should also stay informed on related case scenarios, such as benefits available to employees under 25 years old following childbirth and deadlines for benefit application modifications.