What special features are there in the payroll processing of minijobbers?
September 20, 2023 | 30,00 EUR | answered by Elvira Klinger
Dear tax consultant,
My name is Leonie Köhler and I am the managing director of a small retail business. In our company, we employ several mini-jobbers who work on a 450-euro basis. Recently, there have been some uncertainties in the payroll that are making me feel insecure.
So far, we have been flat-rate taxing the wages of the mini-jobbers and also deducting flat-rate social security contributions. However, I have heard that there are some special features in the payroll of mini-jobbers that we may not be considering. For example, I have heard that there is a distinction between marginally employed and short-term employed.
These pieces of information have made me unsure, and I am wondering if we could be doing something wrong in the payroll of the mini-jobbers. Are there any special regulations that we need to consider? What are the differences between marginally employed and short-term employed? And how can we ensure that we are correctly calculating the wages of our mini-jobbers and complying with all legal requirements?
I would be very grateful if you could help me with this and provide possible solutions. Thank you in advance for your support.
Sincerely,
Leonie Köhler
Dear Mrs. Köhler,
Thank you for your inquiry regarding the payroll of your mini-jobbers in your retail store. It is understandable that you are concerned about the uncertainties regarding flat-rate taxation and flat-rate social security contributions. I am happy to explain the differences between marginally employed workers and short-term employees in order to help you avoid potential errors and to conduct the payroll correctly.
Marginally employed workers usually work regularly and long-term in a company on a 450-euro basis. Special regulations apply to this form of employment regarding social security contributions. As an employer, you must pay a flat rate of 30% of the wage sum for pension insurance, health insurance, and long-term care insurance, as well as 3% for unemployment insurance. The mini-jobber does not pay any social security contributions themselves, unless they voluntarily decide to do so.
On the other hand, short-term employees work for a limited period, usually not longer than 70 days or 3 months in a year. Different regulations apply to this form of employment, as they do not work permanently in the company. For short-term employees, social security contributions are completely waived if the employment does not last longer than 3 months or 70 working days in a year.
To ensure that you correctly calculate the wages of your mini-jobbers and comply with all legal requirements, I recommend that you carefully examine the type of employment of each mini-jobber. Determine whether they are marginally employed or short-term employees and adjust the payroll accordingly. It is important that you pay the correct social security contributions and conduct the payroll without errors in order to avoid potential consequences.
I am available to clarify any further questions and to assist you with the correct payroll of your mini-jobbers. Please do not hesitate to contact me if you need further assistance.
Best regards,
Elvira Klinger
Tax consultant
