The Social Security Status Determining Procedures

The Social Security Status Determining Procedures

Really an end to the legal uncertainty for freelancers, self-employed and assisting family members? It comes again to difficult delimitation cases, whether self-employment or paid employment. Specially in the social security the consequences are noticeable, because the self-employed has basically even to take care of, the employee’s duty member in the social security systems. By the law for the promotion of self-employment SGB IV has been introduced with 7a the status determination procedure definition of self-employed persons – employees the law defines as employment not independent work, especially in employment. Evidence for employment are for example an activity according to instructions and an inclusion in the organisation of the work of the Authority’s. Evidence for self-employment are a wide variety of clients, a stand-alone (entrepreneurial) decision-making in contrast about shopping and selling prices, the recruitment of staff, the use of capital or own machines, the implementation of promotional measures. The characteristics of for or against an employment are not very reliable and so it is common, that due to a false assessment contributions must be paid upon, or that over years social security amounts have been paid, will be found in paid but that there is even no insurance protection. By the law for the promotion of self-employment the status determination procedure is therefore introduced with the 7a SGB IV. At the German pension insurance of federal-style Clearinghouse has to decide whether a dependent employment or self-employment is on request.

Clients and contractors and employers and workers can apply for this status determination procedure, officio it is initiated if a member of the employer for one activity will be logged, or a managing partner of a limited liability company to be registered. This procedure is intended to prevent in particular questions related to the so-called bogus self-employment and thus possible contribution arrears. Provided the request for status determination of activity namely within one month after recording and the German notes versicherungspflichtiges employment insurance federal insurance duty occurs only with the notification of the decision.

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