What additional levies are incurred on top of earnings?
For a household employee in minor employment, the employer must pay a flat-rate levy 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: 0.22%
- Contribution to statutory accident insurance of 1.6% of wages.
- Private households do not have to pay the U3 levy for insolvency payments.
For household employees in minor employment, 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 household employee in minor employment 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 levy, 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.
