The contribution rate to the Artists' Social Security Fund (Künstlersozialversicherung) will remain unchanged in 2020 for the third consecutive year. This is set out in the draft of the 2020 Artists' Social Security Contribution Ordinance.
According to the Federal Ministry of Labour and Social Affairs (BMAS), the unchanged rate is the result of more intensive audit and advisory activities by the statutory pension insurance scheme and the Artists' Social Security Fund (Künstlersozialkasse, KSK). An increasing number of companies subject to the levy are now meeting their contribution obligations. Between 2015 and 2019, around 80,000 newly liable companies were registered.
Many business owners assume that the artists' social security contribution does not apply to them. This can lead to back payments during social security audits. Liability for the contribution does not only apply to self-employed artists or publicists; companies that use the services of self-employed artists or publicists must also participate in the statutory reporting procedure.
Please feel free to contact us for further information on this topic.
The Artists' Social Security Fund currently provides around 190,000 self-employed artists and publicists with mandatory coverage under the statutory health, long-term care, and pension insurance schemes. Self-employed artists and publicists are entitled to the full statutory benefits package. However, like employees in dependent employment, they only have to pay half of the applicable contributions out of their own pockets. The KSK supplements the amounts through a federal subsidy (20%) and through the artists' social security contributions paid by companies (30%) that, as noted above, use artistic and journalistic services.
The artists' social security contribution is levied as an apportionment. The contribution rate is set annually for the following calendar year and currently amounts to 4.2 percent. The assessment basis comprises all remuneration paid to self-employed artists and publicists during a calendar year.
Frequently asked questions
Frequently asked questions
What is the contribution rate for the Künstlersozialabgabe (Artists' Social Security Levy) in 2020?
The contribution rate to the Künstlersozialversicherung (Artists' Social Security Insurance) remains unchanged at 4.2 percent in 2020. This marks the third consecutive year that the rate has remained stable. The assessment basis consists of all fees paid to self-employed artists and publicists within a calendar year.
Which companies are required to pay the artists' social security contribution (Künstlersozialabgabe)?
The obligation to contribute applies not only to self-employed artists and publicists themselves, but above all to companies that use and exploit the services of self-employed artists or publicists. These companies must participate in the statutory reporting procedure of the Künstlersozialkasse (Artists' Social Security Fund). Many entrepreneurs underestimate this obligation and thus risk back payments during social security audits.
How is the Künstlersozialversicherung (artists' social insurance) financed?
Self-employed artists and publicists pay half of the contributions to health, long-term care, and pension insurance themselves, just like employees do. The remaining 50 percent is financed by a federal subsidy (20 percent) and by the Künstlersozialabgabe (artists' social security levy) paid by exploiting companies (30 percent). The Künstlersozialabgabe is levied as an apportionment.
Which benefits do artists receive through the Künstlersozialversicherung?
Through the KSK, around 190,000 self-employed artists and publicists are subject to mandatory coverage under the statutory health, long-term care and pension insurance. They are entitled to the full statutory benefits catalogue of these branches of social insurance. This provides them with protection similar to that of regular employees.
What are the risks of disregarding the obligation to pay the artists' social security contribution?
Companies that use services subject to the contribution without registering with the Künstlersozialkasse must expect back payments in the course of the social security audit. Between 2015 and 2019, intensified audit and advisory activities by the German pension insurance and the KSK led to the registration of around 80,000 newly identified contribution-liable companies. An early review of the contribution obligation is therefore strongly recommended.