Household help or babysitter
March 16, 2010 | 15,00 EUR | answered by Matthias Wander
I (private household) would like to hire a person as a room cosmetician or a babysitter, depending on the workload. I imagine that this person would work for us for two hours once a week.
Do I need to take out social insurance for this person? Do we need to pay taxes for this person?
Dear inquirer,
Thank you for your inquiry, which I would like to answer based on the information you provided and in the context of your situation within the framework of an initial consultation.
For marginally employed individuals in private households, flat-rate contributions amounting to 12% (5% health insurance, 5% pension insurance, and 2% tax) must be paid to the Federal Knappschaft as part of a so-called household check procedure. The Federal Knappschaft issues a certificate for tax purposes. The wages paid and the flat-rate contributions are eligible for consideration.
It is important to differentiate between:
1. For the room beautician, the income tax is reduced by 20% of the expenses, up to a maximum of 510 euros.
2. The costs for the babysitter are deductible as operating expenses/advertising costs or as special expenses at 2/3, but no more than 4,000 euros per child and calendar year. However, this is contingent on the fact that it is purely childcare and no other activities (e.g. cleaning) are performed. Another requirement is that the parents or caregivers are employed and/or sick or disabled, or are caring for a so-called kindergarten child.
I hope this gives you an initial overview.
Kind regards,
Wander
Tax advisor
