co-ordination

Announcing the release date for Employee’s Rights Handbook !!!!

Moshe

Finally, the long awaited Employee’s Rights Book is to be released in Hard copy. The release date is Sunday March 15, 2015

At present, this is the only format. There may be a PDF purchase option at a later date.

The book is 107 pages of vital information for employers, employees and anyone interested in Employee’s rights, labor laws and the makeup of payroll in Israel.

Announcing the first and only English language guide in simple easy to understand language !!!

The Book also contains a dictionary of common Hebrew payroll terms and their English translation, examples of payroll forms, useful contact information, tips and more.

Get your copy today,  and know your rights !

price: 100 sh (including mailing). Optional self-pickup in Jerusalem (85 sh).
Payment via credit card or paypal, use this link:

<a href=”http://www.vcita.com/v/israpay/make_payment?pay_for=Employee’s%20Rights%20Handbook&amount=100″ target=”blank”>pay</a>

or follow the schedule an appointment on the left hand side of the home page of this site.
If you encounter a scheduling error notice, send the following details:
(Name, mailing address, email address, phone/cell number. If you wish that the invoice be made out to a different name than the one you supplied, please state)
to moshe.israpay@gmail.com and An invoice will be emailed to you. When you open the invoice you will have the ability to pay.

Check payments option:  send a check made payable to Moshe Egel-Tal along with the above info to

Israpay
P.O. Box 44429
Jerusalem 9144302

 

 

 

 

New info on Tax reconciliation

Moshe

bankrupt cartoon

 

The Israel Tax Authority has updated their website for citizens who want to apply for a tax reconciliation due to several simultaneous sources of income as a salaried employee. In the past, applying on line may have saved the time of physically going in to your local tax authorityoffice and waiting on line, but you still had to wait two weeks for the official documents to be sent to you via snail-mail. So, the first improvement of this process is an immediate procurment of the documents and the ability to immediately print them directly from the site !

In addition, every application recieves a serial number that can be accessed from any computer with internet capability to print extra copies at will.

The 3rd upgrade is that in the past, this was limited to a combined gross salary ceiling (from all sources) of 188,712 sh, this amount was updated to 436,272 sh !

And last, but not least, in the past you were allowed 3 tries, if you input mistaken information via the site, now that has been doubled to 6 tries, three and another three tries after 24 hours have past from the first three tries.

Save the time and do your tax reconciliation on your own time and in the comfort of your home ! No lines and no waiting !

Highly recommended

 

https://www.misim.gov.il/shteumeimas/frmPreMain.aspx

 

New !!! tax reconciliations on-line !

Moshe

It seems that the Israel Tax Authority is trying to keep up with technology.

As from the year 2012, employees who are employed simultaneously by at least two and up to six employers with a total income of no more than 188,544 shekels (gross) can file their request for a tax reconciliation (teum mas) via the internet. (This is instead of filling out a 166 tax form, going in to your local tax office and waiting in line while losing valuable work hours)

You are able to print out a copy of what you reported for your records and the Tax Authority will send the employee, to the address you specify, the required letters for each of the employers with instructions on how to deal with the tax from what each of them are paying via payroll. This is usually done within a few work days and can save you the trouble of going in each year to renew the letters for your employers.

Note: You can only file online one time during the tax year. If there are any changes you will need to go personally to your local tax office to update the letters for the employers.

They have a simulator for taxes without a need to submit the information.

The taxes are not final, pending filing year end taxes for all the employee’s earnings. This is done by the employers, employees are exempt from this unless they have income other than salary. In any case, to check whether you are required to file taxes it is advisable to consult an Israeli certified CPA or Tax advisor.

You need to be very careful to correctly fill out all the information requested, as any mistake will result in wrong output. Before you attempt to do this make sure you have the last payslip from all employers on hand. The payslip has the employer’s name, address and tax ID number as he is registered with the Tax Authority.

You will first need to download and install a Toolbar for Government forms and you need to be using  Internet Explorer (versions 6,7,8,9) or Firefox (versions 3-11) and either Windows or Linux OS

http://forms.gov.il/forms/Resources/DowloadSetup/AGFormsDownloadToolbarEnglish.htm

Everything about Social Security Payment Co-ordination

Moshe

What is Social Security Payment Co-ordination ?
This is called Teum Dmei Bituach Leumi in Hebrew. There are two stages for calculating Social Security and Mandatory Health tax that are automatically deducted from employees’ gross pay. The first stage or reduced rate is 0.4% for Social Security and 3.1% for Health Tax up to a ceiling of 4,809 shekels (Jan 2010)
Any income over this amount, the deductions rise significantly to 7% for Social security and 5% for Health Tax.
If someone is employed by several employers, they will need to have a payment co-ordination done (in addition to the better-known tax co-ordination) in order to avoid paying the higher rates from the first shekel for income earned from the additional employer, as it is possible that there is unutilized portion of the 4,809 shekels that the additional employer can use for the reduced rates.

Who needs to do s.sec co-ordination ?
If a person is employed by more than one employer they will usually need a s.sec. co-ordination.

How do i get a Social Security Co-ordination ?
Up until Dec 2009, anyone who declared on their annual 101 tax form that they have additional income, was required to apply at their local Social Security office for a Co-ordination. If the employee didn’t bother doing it, the employer automatically deducted the higher rates from the first shekel.
Do to a change in the Social Security laws, effective January 1, 2010, the additional employer is allowed to do the co-ordination himself, on several conditions, thus eliminating the need for the employee to take time off work and go in to the Social Security office.

What are the conditions that allow an additional employer to do the co-ordination ?
1. The employee must fill out a declaration via a 644 form (available on the Social Security website – www.btl.gov.il)
I advise using the Hebrew site and not the English as the form doesn’t appear there yet. It is a PDF file that can be downloaded.

The 644 form is a declaration which states the employee’s last gross pay from his main employer.
note: if the pay is over the ceiling (4,809 shekels) this is irrelevant as he has utilized the full amount at the reduced rate and therefore all pay from the additional employer will be at the higher rates.
2. If the employee works for more than 2 employers or he earns more than 75,000 shekels per month, he will need to apply personally at the Social Security office and this form is irrelevant for him.

This declaration needs to be renewed annually along with the 101 tax form and tax co-ordination forms.

What happens to the money I overpaid in previous years ?

While there is a chance that you paid too much money via the Social Security and Health Tax deductions on their payslip from the additional employer, this needs to be checked out individually. You will need to write a letter to Social Security requesting a refund.

How can I know if I was overcharged ?
It is advisable to have this pre-checked by a payroll professional. This is one of the paid services Israpay offers. Interested employees should send an email toMoshe@Israpay.com with their name and contact information