Social insurance

Anyone who works as an employee in Germany is generally subject to German social security law. social security law . In the case of cross-border employment, for example if the employee is only working temporarily in Germany but is actually employed abroad, or if the employment is carried out in several countries, exceptions may apply.

Registration as an employer

In order to participate in social security procedures, employers require a company number . This can be applied for online at the company number service of the Federal Employment Agency.

The following are required:

• Details of the place of employment and
• the industry and
• Contact details of a contact person.

Social security notification

Employers must register their employees for social insurance, Section 28a of the Fourth Book of the German Social Code (SGB IV). The type of employment, such as temporary, permanent, marginal or non-permanent, is irrelevant. Details are regulated by the Data Collection and Transmission Ordinance (DEÜV). Employees receive proof of the notifications submitted.

Notification facts

There are regular notifications and notifications on certain occasions.

Notifications must be made, for example

• at the start of employment
• on termination of employment
• when the payment of remuneration is interrupted
• when changing health insurance fund
• as an annual notification after the end of the calendar year.

The notifications must be sent to the collection agencies be submitted. These are the health insurance fund of the employee or - in the case of marginal employment - the mini-job center of the German Pension Insurance Knappschaft-Bahn-See.

The notifications are made via secure and encrypted data transmission from certified payroll accounting programs . Alternatively, an approved completion aid can also be used, for example sv.net . This enables the secure online transmission of notifications and certificates.

The notifications can be submitted by the employer or by a contracted service provider.

Further information on the registration procedure can be obtained from the health insurance funds or the Minijob-Zentrale.

Deadline for registration

Employment begins with the first following wage and salary statement must be reported. However, the notification must be made within 6 weeks of the start of employment at the latest.

Deadline for deregistration

The termination of employment must be reported with the next payroll. However, the notification must be made within 6 weeks of the end of employment at the latest.

Immediate notification obligation

If persons are employed in the economic sectors or branches listed below, an immediate notification be submitted at the latest:

• Construction
• Catering and accommodation industry
• Passenger transportation industry
• Freight forwarding, transportation and related logistics industry
• Show business
• Forestry companies
• Building cleaning industry
• Companies involved in the construction and dismantling of trade fairs and exhibitions
• Meat industry
• Prostitution industry
• Guard and security industry.

The immediate notification does not replace the regular registration .

Payment of contributions

Contributions to health, long-term care, pension and unemployment insurance are calculated on the basis of the remuneration according to the applicable percentage rate. Together they form the total social security contribution . This includes both the employee's and the employer's share.

Contributions are only levied on wages up to the applicable contribution assessment ceiling. The contribution assessment ceiling is set annually in advance for the next calendar year.

The employer calculates the contributions. The employer deducts the employee's share from the wage or salary and transfers it together with the employer's share to the collection agency. In the case of low-paid employment, so-called mini-jobs, the employer pays flat-rate contributions. The employer is solely liable for all contributions.

Due date of contributions

The total social security contribution is due at the latest on the third last bank working day of the month in which the employment with which the remuneration was earned was exercised. Any remaining amounts are due with the next payment on the third-last bank working day of the following month.

Contribution statement

The employer must provide the collection agency with a statement of the total contributions to be paid in the respective month by the fifth last banking day of the month. send a contribution statement . The contribution statement can also be marked as a permanent contribution statement. It is then valid until a new contribution statement is issued.

Documentation obligations

For each employee, the employer must pay records for each employee, Section 28f of the Fourth Book of the German Social Code. Details are regulated by the Contribution Procedure Ordinance (BVV). These records must be kept in German and stored in Germany. They are the basis for regular company audit .