Ask a tax advisor on the topic of Payroll

Income tax for Mini-Job business owners/shareholders?

March 13, 2010 | 20,00 EUR | answered by Matthias Wander

I am a compulsory social security employee (part-time) and have recently become self-employed as a founder of a GmbH/UG with a small business on the side, where I work as the sole managing director for 400,- euros per month (current turnover/order volume unfortunately does not allow for higher salaries and additional employees, I have several small orders/clients).

Do I need to register my activity as a managing director (400,- euros) with the Mini-Job-Center and ELENA, and if so, what contributions are due (flat-rate wage tax 2% or 20%? Levies? Social security contributions?)?

Who is responsible for paying the contributions? Personal or company expenses?

Thank you in advance!

Matthias Wander

Dear questioner,

Thank you for your inquiry, which I would like to answer based on your information and in the context of your involvement in a first consultation.

Controlling shareholder-managers (with a stake of more than 50%) are not subject to social security contributions, as they are not considered employees for the purposes of social security. Therefore, there are no contributions for marginal employment. There is also no need to report to the Minijob-Zentrale or for the ELENA procedure.

Kind regards,

Wander
Tax advisor