Steps towards independence
Steps to self-employment
Anyone who becomes self-employed and sets up a new business is starting from scratch. Some initial decisions, such as the legal form of the new company, already have an influence on later social security decisions.
Formalities before you can get started
Even before the first employee's first day of work, there are a number of formalities relating to social security, such as
- Issuing a trade licence
- Assignment of a company number
- Registration with the employers' liability insurance association (BG) and receipt of the company number
- Registration (of employees) with the health insurance fund and
- Entry in the commercial register.
In addition to these formalities, contact with the tax office and exploring funding opportunities are essential for setting up a business.
Good advice is essential for choosing the right legal form, necessary insurances and possible subsidies. Legal and tax consultancies, the relevant chamber of commerce and the AOK Bayern health insurance scheme can provide assistance.
Startup grant from the Federal Employment Agency
Self-employed instead of unemployed: Anyone who dares to take the step into self-employment from unemployment can be supported by the Federal Employment Agency (BA) with a start-up grant.
The startup grant can be paid for a total of up to 15 months and is divided into two phases:
Phase 1: For a period of six months, the start-up subsidy is paid in the amount of the last unemployment benefit received, plus a monthly lump sum of 300 euros as a subsidy for social security.
Phase 2: If the business startup or business activity is proven on the basis of suitable documents, 300 euros per month can be paid for social security for a further nine months.
Applications must be submitted to the employment agency responsible for your place of residence before taking up self-employment.
Social security for the self-employed
Employed persons should be under special protection and are therefore generally subject to compulsory insurance in the individual branches of social security. Self-employed persons, on the other hand, are responsible for their own social security to a much greater extent.
The legal form of the company and its impact on social insurance
In practice, the criteria for distinguishing between employment and self-employment are not always clearly defined.
When making an assessment, the legal form of a company can already provide an indication of the social security status of the persons involved.
There are often doubts as to whether or not partners are in dependent employment subject to compulsory insurance. Decisive criteria for assessing this result from the legal form of the company, the structure of the contract and the actual circ*mstances. The assessment examines whether or not the person in question can significantly influence decisions on the management of the business through their position in the company. The assessment of whether a dependent employment relationship exists must always be carried out on a case-by-case basis.
The questions regarding the entrepreneurial status of the persons acting in a partnership are clearer. As they are liable for the company's losses up to and including their private assets, the risk here is so pronounced that dependent employment with the company is ruled out from the outset. In the case of sole proprietorships, the owner alone bears the entrepreneurial risk and is fully liable with his or her private assets. This means that there is no dependent employment and therefore no insurance obligation.
Self-employed: statutory or private health insurance?
Self-employed people can decide whether to take out statutory or private health insurance.
In both statutory health insurance (GKV) and private health insurance (PKV), people come together to form communities in order to create a mutual equalisation of risk, for example in the event of illness.
The benefits offered by statutory health insurance ensure the same high level of health care for all members of the solidarity community, regardless of income. Health insurance contributions are paid in equal parts by the employer and the employee. Statutory contribution rates apply, regardless of age or state of health. As a self-employed person, you pay your GKV contributions alone. Contributions are calculated from your income up to a maximum monthly income threshold of €5,175. For founders, however, the AOK takes into account that income is not yet "sky high", especially in the initial phase. It therefore initially bases the calculation of contributions on actual (anticipated) income. Once the income tax assessment notices for the previous years are available, the initially provisionally calculated contributions are adjusted to the actual income situation in the respective year. Family members are co-insured free of charge in the statutory health insurance scheme under legally defined conditions; benefits are paid directly by AOK Bayern for the entire family with the electronic health card in accordance with the principle of benefits in kind.
The situation is different in private health insurance. Here, the insurance premium (contribution) is based on the financial risk that the private health insurance company assumes by concluding the insurance contract. Social aspects and the financial capacity of the insured person are not initially taken into account. In contrast to statutory health insurance, premiums are also influenced by the insured person's particular risks, such as age, state of health and possible pre-existing conditions. Separate premiums must be paid for family members, which significantly increases the total premium for private health insurance. Privately insured persons generally pay in advance for outpatient treatment. Depending on the invoice amount, this can lead to a financial burden before the insurer has reimbursed the costs.
Important to know: When taking out your own health insurance, you should definitely think about later. Healthcare costs increase with age. While this aspect is cushioned by solidarity in pay-as-you-go statutory health insurance, private health insurance has individual age provisions that must be built up during the previous insurance period.
A later return from private health insurance to statutory health insurance is almost impossible. The decision between statutory and private health insurance is therefore a decision for life and needs to be carefully considered.
The AOK guarantees competent and personalised advice - whenever it is needed. You can find the right contact person at www.aok.de/fk/kontakt
Pension insurance and retirement provision
Self-employed persons are generally responsible for their own pension provision. However, there are options for statutory pension insurance. You should contact the regional service centres of Deutsche Rentenversicherung in good time. So-called employee-like self-employed persons are subject to pension insurance.
Unemployment and accident insurance
Under certain conditions, self-employed persons can also insure themselves in the event of unemployment (again). The Federal Employment Agency offers advice on this.
Interesting for employers: In many cases, the BA supports the hiring of employees, for example with wage subsidies.
Self-employed persons are only automatically covered by statutory accident insurance in exceptional cases. Voluntary accident insurance can be applied for via the relevant employers' liability insurance association and should ideally be discussed before registering the business. Information on who is responsible can be obtained from the German Social Accident Insurance (DGUV) at 08006050404 or at: dguv.de
And for startup employees: Employees are covered by statutory accident insurance (UV). The employer alone pays the contributions. The accident insurance providers organised in the umbrella association DGUV are responsible. The AOK works closely with the accident insurance providers and offers interesting measures for your company health management.
Employment of employees and social insurance
The leap into self-employment needs to be well prepared. This also applies to the essential area of social insurance when setting up a business. After all, you are now not only taking responsibility for your own economic success, but also for your employees.
Hiring employees goes hand in hand with a number of employer obligations, such as:
- Assessment of compulsory social security insurance
- Keeping payroll records
- Continued payment of remuneration to sick employees
- Submission of social security notifications
- Calculation, verification and payment of social security contributions
A wealth of regulations must be observed when fulfilling these tasks.
More on the employment of employees
AOK Bayern will provide an overview of the most important questions regarding your own social security and initial obligations as an employer with the tutorial "Employing employees in a startup - first steps towards self-employment and employing staff" on 21 March 2024 from 13:30 - 14:30.
Register now!
