Under certain conditions, companies that engage artistic or journalistic services are required to pay artists' social security contributions (Künstlersozialabgaben). Several legal principles must be observed, which are explained below.
Who qualifies as a journalist or artist?
It is essential to know who is considered an artist or journalist subject to reporting requirements. The conditions for mandatory insurance are:
- The artist or journalist must be self-employed on more than a temporary basis
- Must operate primarily in Germany
- May not employ more than one person
For a more precise classification, the Künstlersozialkasse (Artists' Social Security Fund) has also compiled a catalogue of listed professions. This serves as guidance for identifying artists and journalists subject to mandatory insurance.
When does the obligation to contribute to the Künstlersozialkasse apply?
An obligation to contribute to the Künstlersozialkasse applies to the following companies:
- Classic representatives (publishers, press agencies, theatres, orchestras, museums, etc.)
- Companies that engage artistic or journalistic services
- All companies that engage artists or journalists on more than a sporadic basis
- "More than sporadic" means at least once per year
- General clause for companies
- The obligation applies to companies that organise events with artists or journalists or generate income from such events
- At least more than 3 events per year
Which services are subject to the contribution obligation?
Companies must report all services required for receiving or using the work or activity. These include:
- Fees paid
- Commissions on the sale of the work
Ancillary services:
- Telephone costs
- Freight costs
- Material and personnel costs
The VAT paid to the artist or journalist on the services rendered is not subject to the contribution obligation.
How is the actual contribution calculated?
The artists' social security contribution represents the financial contribution paid by the company to the Künstlersozialkasse when it engages artistic or journalistic services. The contribution rate paid by companies to the Künstlersozialkasse has decreased in recent years and has remained at a low 4.2% since 2018. With state support, the rate is also expected to remain at 4.2% in 2022. To calculate the final contribution amount, the percentage rate is multiplied by the reportable services. It is also important to understand how the social contribution burden for the artist or journalist is distributed. It is allocated proportionally between the artist or journalist (50%), the company (30%) and the federal government (20%).
Frequently asked questions
Frequently asked questions
Who qualifies as an artist or publicist subject to mandatory insurance under the Künstlersozialkasse?
Insurance is mandatory for anyone who works on a self-employed basis as an artist or publicist on more than a temporary basis, carries out this activity primarily in Germany, and employs no more than one employee. To support classification, the Künstlersozialkasse also provides a catalogue of listed professions as guidance.
Which companies are subject to the levy under the Künstlersozialkasse?
Classic exploiters such as publishers, press agencies, theatres, orchestras and museums are subject to the levy. The same applies to companies that use artistic or journalistic services on more than a sporadic basis (at least once per year). In addition, the general clause covers companies that organise more than three events per year involving artists or journalists, or generate revenue from such events.
Which payments must be included in the assessment basis for the artists' social security levy (Künstlersozialabgabe)?
All payments made for obtaining or using the work or services must be included. This particularly covers fees and commissions paid for the sale of the work, as well as ancillary costs such as telephone, freight, material, and personnel expenses. VAT paid to the artist or publicist is not included in the assessment basis.
What is the contribution rate of the Künstlersozialabgabe and how is it calculated?
The contribution rate has remained constant at 4.2 % since 2018 and, thanks to government support, also applies unchanged in 2022. For the calculation, this percentage is applied to the total of reportable remuneration. The result is the amount the company must remit to the Künstlersozialkasse.
How is the contribution burden distributed in the Künstlersozialversicherung (German Artists' Social Insurance)?
Funding comes from three sources: the artist or publicist pays 50%, the commissioning company contributes 30% via the Künstlersozialabgabe (artists' social security levy), and the federal government covers the remaining 20% as a subsidy.