2nd activity for the same employer
February 2, 2011 | 50,00 EUR | answered by Michael Herrmann
Dear tax advisor,
I work at a school (under private association) with a 1/2 position in the educational field. Now, due to the elimination of the previous caretaker position, I have been offered another contract as a caretaker by the association. It is not possible to have a minor employment with the same employer.
Question 1: Is it possible to have another position as a caretaker with the same employer if the income is subject to social security contributions and exceeds 400 euros? Are there any special considerations to be aware of?
Question 2: Is it permissible and (tax-wise) more beneficial to register a small business and invoice the association for services rendered? Are there any special considerations to be aware of?
Thank you for your comprehensive and valuable information.
Dear inquirer,
First of all, thank you very much for your inquiry, which I would be happy to answer based on the information you provided and in the context of your initial consultation. The response is based on the facts presented. Missing or incorrect information about the actual circumstances can influence the legal outcome.
1) Yes, you can expand the existing employment contract to include the caretaker duties and agree on a new remuneration. A 400-euro job (mini job) with the same employer is not possible, as the tax exemption is only allowed for side jobs and not as a supplement to the main employment. Therefore, the marginal employment is excluded.
2) A self-employed side job for the employer does not offer any tax benefits, as the compensation is just as taxable as that of an employee. Only the administrative effort increases.
In this scenario, it should be noted as a risk factor that the social security providers could classify the activity as subject to social security contributions, as it is similar to that of an employee.
Only the tax-free lump sum according to § 3 No. 26a of the Income Tax Act is conceivable. According to this, individuals who work voluntarily and unpaid on behalf of a non-profit association or a legal entity under public law can receive expense allowances of up to 500 EUR per year tax-free, known as the volunteer allowance.
This amount is also exempt from social security contributions. However, this allowance is only intended for unpaid activities where an expense allowance is paid.
Unfortunately, based on the circumstances, you cannot avoid a taxable and subject-to-social-security compensation for your activities with this employer.
I hope that this information provides you with a sufficient overview of the situation within the scope of your inquiry and this initial consultation.
Kind regards,
Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax advisor
