What additional levies are incurred on top of earnings?
For a part-time household employee, the employer must pay a flat rate of 12% on the wages, consisting of 5% each for statutory pension and health insurance, and 2% for tax. Additionally, the following contributions are payable in 2019:
- U1 levy for sickness and convalescence expenses: 1.1%
- U2 levy for maternity expenses: 0.24%
- Contribution to statutory accident insurance of 1.6% of wages.
- Private households do not have to pay the U3 levy for insolvency payments.
For part-time employees in private households, the private employer must use the so-called household cheque. The household cheque offers you significant relief - which you must use! And only by using the household cheque procedure can you benefit from the tax reduction under § 35a EStG. With the household cheque, you can easily register your part-time household employee with the Minijob Centre (Deutsche Rentenversicherung Knappschaft-Bahn-See) and at the same time grant a direct debit authorisation for the deduction of social contributions.
The Minijob Centre will issue an employer's business number if not already available, calculate the additional costs (flat rate, levies, accident insurance) and debit the total amount from your account twice a year by direct debit: for the first half of the year on 31 July and for the second half of the year on 31 January of the following year.
