Health insurance for marginal and freelance employment
September 30, 2009 | 33,00 EUR | answered by Irmingard Huber-Stempfel
My wife (childcare worker) has been working on a "400 euro" basis so far. Her annual income from this is only around 3000 euros. Now she has been offered the opportunity to also take on freelance work with an annual income of around 2800 euros. Up until now, she has been insured through the family insurance scheme with me. Can this continue, or will she have to pay insurance contributions herself? And will she have to pay income tax?
Dear inquirer,
I am happy to answer your questions as part of the initial consultation, taking into account your input.
The response refers to the specific situation you have described. Additions, changes, etc. may affect and possibly alter the legal outcome.
1. Family insurance
Your wife earns 250 euros per month as part of the mini job.
According to § 10 SGB II, family members are insured under family insurance if the total income of the family member is below 360 euros monthly. The limit for total income increases to 400 euros with a mini job.
Full-time self-employment excludes family insurance. Full-time self-employment includes employing workers or being predominantly self-employed. The number of hours is important here. How many hours per week is your wife engaged in self-employment? To be considered full-time self-employed, one must work more than 18 hours per week for this activity.
I lack information for a final assessment. However, I assume that your wife is not full-time self-employed.
Your wife's total income must not exceed 360 euros. The total income includes the profit (not income) from self-employment and the earnings from the mini job. The calculation depends on how many business expenses your wife has. Therefore, she may have a maximum profit of 1,320 euros per calendar year. Since you assume an annual income (= profit) of 3,000 euros, your wife is no longer eligible for family insurance. She must voluntarily insure herself in health insurance. These contributions are relatively high. Inquire with your health insurance provider if your wife can be classified as a voluntary non-self-employed member. This is possible if there is no full-time employment (hours – employees). However, the mini job remains exempt from health insurance.
2. Tax liability
The mini job is tax-free due to the flat tax rate of 2%.
Self-employment is taxable. The profit (= the difference between business income and expenses) is taxable. No income tax is paid. Income tax is the prepayment of wage tax, i.e. a prepayment of the later income tax is made. The profit is reported and taxed in the annual income tax return. Income tax will be incurred on this. The amount depends on your personal tax rate.
If you have any further questions, please use the follow-up function.
Kind regards,
I. Huber-Stempfel
Lawyer and tax advisor
