👨👩👧 Family members in the business
In brief
Partners, children or parents often help out in a family business. Sometimes this is normal employment with wages and social insurance. Sometimes it is mere family help without employment.
What matters are the actual circumstances: Is the person deployed under instructions? Is there fixed pay? A contract alone does not decide.
If you are unsure, you can apply to the Deutsche Rentenversicherung Bund (German Pension Insurance) for a status determination procedure (Statusfeststellungsverfahren). The result tells you whether social insurance is compulsory for the person.
If you register family members, the health insurance fund often examines this further automatically.
Step by step
- Describe the workWrite down: tasks, working time, instructions, pay.
- Clarify the statusIf in doubt: apply for a status determination at the Deutsche Rentenversicherung Bund.
- If employed, register properlyContract, written record, pay, registrations as for any other person.
- Keep documentsPay wages in a verifiable way by bank transfer, not in cash without a receipt.
Deadlines
- According to the law, the collection office (Einzugsstelle) must initiate a status procedure if the notification shows that the employed person is a family member or a managing shareholder (§ 7a SGB IV).
- Compulsory insurance established retrospectively can lead to demands for back payment of contributions; the amount and limitation period were not evaluated here.
- No pay does not automatically mean no employment, and pay does not automatically mean employment.
- Youth employment protection rules additionally apply to children; these were not checked here.
In depth · legal basis, figures and practice – for advisers and professionals
Status determination
Under § 7a Abs. 1 SGB IV, the parties can apply in writing or electronically to the Deutsche Rentenversicherung Bund for a decision on whether a contractual relationship is employment or self-employment. The law provides that the collection office must submit an application if the employer's notification shows that the employee is a family member or a managing shareholder. The procedure is not admissible if a procedure to determine compulsory insurance has already been initiated.
Points not checked
Which criteria the pension insurance applies to family members in detail (being bound by instructions, integration into the business, pay at the usual level) and how this affects spouses or children who help in the business was not evaluated from primary sources in this research. Consult the information from the Deutsche Rentenversicherung or seek advice.
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