Social contributions for Kleinunternehmer

[AlexCLE 55]

I'm employed full time and registered a business for side work. I notified my employer of my Nebentätigkeit and they asked if I will be making social contributions. I'm really unclear about this. As I understand it I only have to contribute to health insurance from the business? How does this effect the withholdings from my full time employer? Or should everything there stay the same and anything extra I owe gets washed out in the Steuererklärung?

[PandaMunich 16,486]

You were talking at cross purposes: the fact that your employer asked you that means that they think that you will take up a second employment.

Tell them that your side activity will be freelance and they will no longer care.

Only a second employment would affect what your employer has to deduct from your salary every month.

 

1 hour ago, AlexCLE said:

As I understand it I only have to contribute to health insurance from the business? 

As long as you work more for and earn more from your employment than from your freelance activity, you do not have to pay an additional contribution to public health insurance.

 

You will pay the extra tax you will owe on your freelance profit through your now mandatory tax return.