Manager's Responsibility for Withholding and SSI Payments: What You Need to Know

Apartment management is not only about collecting dues and replacing lamps. If you have an employee in your building (janitor, heating, security or cleaning staff), you are also an “employer proxy”. This also entails certain financial obligations to the state. So, what should the manager pay attention to in withholding and SSI payments?

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Income and Stamp Tax Exemption for Apartment Employees

This is what many managers know about but make mistakes in its details.

Rule: According to Article 23 of the Income Tax Code, wages paid to servants such as janitors, gardeners, watchmen who work in housing are exempt from Income Tax. There is also no Stamp Duty paid on these fees.

Caution: If your building has an “office” or “commercial space”, these exemption situations may vary. Here, the apartment employee is considered to provide services not only to the apartment, but also to the workplaces. The government is very clear about this: “There is no tax exemption where there is a workplace.”

Timely Payment of SGK Premiums

It is the principal duty of the manager to make the insurance entry of staff and the regular reporting and payment of premiums every month.

Risk: A single delayed premium payment leads to depriving the apartment of “SSI incentives” and serious late increases.

Solution: Create recurring expenses and add them to the calendar using management apps like Biyos and never miss paydays. You can also transparently track personnel costs through the Biyos.

Concise Declaration and Tax Number

Apartment buildings, even if they are not taxpayers, are obliged to notify the tax office for certain payments they make (consultations received with a self-employment receipt, renovation work, etc.).

Obligation: If external billed/invoiced services are being received from outside the apartment staff, it may be necessary to make a withholding deduction and report it with a concise declaration.

Should the Severance Compensation Fund Be Separated?

The most difficult issue for managers is severance pay, which must be paid in bulk when staff leave work.

Recommendation: Allocating a reserve fund in small amounts each month under the name of the “Severance Compensation Fund” avoids the huge costs that lie ahead. Keeping this fund in a separate account in the bank is the most correct in terms of transparency.

Occupational Accident and Notification Obligation

In case of a possible accident at work, the manager is obliged to notify the SSR within 3 working days. Passing this period may result in administrative fines, which go up to the personal responsibility of the manager.





As a result, small mistakes made in financial matters can turn into large compensations and penalties in the long run. Using management software like Biyos assures you and the floor owners by allowing you to keep track of all those dates and payments without errors.