"ELStAM" stands for "Elektronische Lohnsteuerabzugsmerkmale für Arbeitgeber" in Germany. It is a procedure where employers can directly retrieve electronic wage tax deduction characteristics (ELStAM) of their employees from the tax office. These ELStAM contain information such as the tax class, the number of child tax credits, and the church tax deduction, which are relevant for wage tax deduction.
Typical functions of software in the "ELStAM" domain include:
Retrieval of ELStAM: The software allows employers to electronically retrieve ELStAM of their employees from the tax office.
Update of ELStAM: The software supports regular updating of ELStAM to ensure that the payroll is always based on the current tax information of the employees.
Management of employee data: The software enables the management and updating of employee data to ensure that the correct ELStAM are used for each employee.
Integration into payroll systems: The software can be integrated into existing payroll systems to enable automatic calculation of wage tax deduction based on the ELStAM.