Mini-job and additional income – observe legal requirements!

Since the creation of the tax-free mini-job, more and more households are finding people who are pursuing a second occupation. The reasons are many. Extra income may be required for some due to increased cost of living. Others want to realize their dream of owning a home or taking a particularly luxurious vacation. In addition, a mini-job can be the first step towards a job change or on the way to self-employment.

But whatever may have led to the search for a part-time job – you should know about some points. For example, from when you have to pay tax on your extra earnings? How does it look with several minijobs? And in which areas is it even worth looking for a part-time job?

What are the side jobs?

The range of marginal employment opportunities is actually not that bad. In some areas it is simply cheaper for companies to hire mini-jobbers. For other jobs, it's not worth hiring year-round because you only need a temp for a certain amount of time. Requirements and hourly wages are very variable depending on the type and industry. For example, there are side jobs that can be pursued from home, such as data entry for a company. If you would like to make yourself useful in a private household, it is best to keep an eye out for a position as a domestic helper, babysitter or tutor. For someone who likes to drive a car, a job as a vehicle driver at a car rental company would come into consideration, or a job as a courier driver.

Secondary income as a seasonal worker

Other jobs are seasonal, like something like being a harvest worker. If you live in an area that is attractive to tourists, there are also many temporary jobs available at certain times as:

• Waiters
• Animator
• City Guide
• Porter
• Maid

Furthermore, you should always be active as soon as there is talk of special events in the area. Promoters are often needed at trade shows to hand out flyers and giveaways. If a film is being shot nearby, it may be possible to get an extra role. While people with language skills can get a turn as interpreters at a convention.

Secure side income year-round

In addition, of course, there are plenty of tasks that need to be done regularly throughout the year. This results in mini-job positions as:

• Newspaper delivery person
• Sales assistant
• Financial advisor
• Sorter
• Secretary

A big area where there is always a shortage of capable workers is the elderly and nursing sector. So, as you can see, there is no shortage of opportunities to get a second job.

The current additional earnings regulations for mini-jobs

Basically, there are two types of marginal employment.

Marginal employment

The first and better-known variant is the mini-job in the form of marginally paid employment – often referred to in the vernacular as a 400-euro job. However, this designation is no longer entirely accurate, since since 1. As of January 1, 2013, the remuneration limit for this form of additional income was raised to 450 euros. This means that all mini-job income – whether derived from one or more employment relationships – is tax- and social security-free as long as it does not exceed this amount. However, the exemption from social security contributions is no longer completely true due to the recent changes. Since January, mini-jobs have also been subject to compulsory insurance in the statutory pension insurance scheme. Under certain conditions, however, it is possible to be exempted from the pension insurance obligation.

Short-term employment

In addition to the marginal employment, which is based on the amount of the additional earnings, there is also the so-called short-term employment. This is an employment relationship that is concluded for a maximum period of 50 days or 2 months. Here, the remuneration may also exceed 450 euros to be considered marginal. Prerequisite is, however, that the activity is not exercised professionally.

Short-term employment is considered to be professional:

• for recipients of unemployment benefits
• for ALG II recipients (Hartz IV recipients)
• when exercised alongside parental leave
• when performed in addition to unpaid leave

Short-term employment is not professional:

• in the case of employees and the self-employed, the mini-job is in addition to their usual work
• for persons who have never been gainfully employed
• for pupils and students

Who is longer active, than it is usual with a short term employment and between 450-850 euro earns, lies with its Nebenjob in the Gleitzone. This means that his activity is subject to social security contributions, but only conditionally has to pay taxes. In the case of tax classes V and VI, a certain tax rate must be paid depending on the income level. For classes I-IV, on the other hand, there is no tax liability.
A side job that exceeds 850 euros is fully liable to tax and social security contributions.