There are various reasons why you might be assigned an unexpected tax class. Here are several important points you should check to identify potential causes:
Missing Tax ID
If no valid Tax Identification Number (Tax ID) has been provided in your records, this can lead to an incorrect tax classification. In such cases, your payroll is automatically processed using Tax Class VI, which is intended for additional or unidentifiable employment relationships. This class involves significantly higher deductions and should be avoided if you only have one regular job.
Multiple Employers
If you hold multiple jobs at the same time, this can lead to the assignment of Tax Class VI. Generally, your primary employer uses one of the tax classes from I to V, while all additional employment relationships must mandatory be billed under Tax Class VI. This class is specifically designed for secondary or side jobs and results in higher tax withholdings. In particular, Tax Classes V and VI are associated with higher deductions, leading to an increased tax burden.