The new year brings important changes. (Photo: © tiagozr/123RF.com)
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Craftsmen will have to prepare for numerous changes again in 2017. The contribution assessment thresholds are rising, the minimum wage is being raised, and the flexi-pension is coming.
There are several new developments for businesses in the new year. A positive for businesses: Tradespeople are entitled to compensation from the dealer for their removal and installation costs in the event of defective materials. An overview from A for Workplace Ordinance to W for Further Education Grants:
The regulation came into force at the end of 2016: After a long struggle, it no longer requires lockers or windows in restrooms, but instead sets out specific requirements for occupational safety training and rules for telecommuting. Railings on construction sites will continue to be required only for fall heights of two meters or more. In the future, psychological stress must also be considered in risk assessments.
The legislative process is expected to be completed before the end of this legislative period. The exact date had not yet been determined at the time of publication. There is still disagreement on key issues of construction contract law. These include the client's unilateral right to issue instructions and the associated remuneration regulations.
The contribution assessment limits will rise again in 2017. This is reflected in the social security calculation figures for the coming year. They are adjusted annually depending on how incomes developed in the previous year.
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The general annual salary limit will increase from €56.250 to €57.600 per year. Employees wishing to switch to private health insurance will be required to earn at least this amount in the future.
It increases in the new federal states to 2.660 euros per month (31.920 euros per year), and in the old federal states to 2.975 euros per month (35.700 euros per year).
The contribution assessment ceiling for general pension insurance increases to €5.700 per month (€68.400 per year in western Germany), and to €6.350 per month (€76.200 per year in western Germany). This also increases the portion of salary that employers can invest tax-free in a direct insurance policy, pension fund, or pension fund. The maximum subsidized amount climbs from €2.976 to €3.048 per year, corresponding to four percent of the federal minimum wage (BBG) in western Germany. An additional €1.800 per year is possible tax-free under certain conditions.
The nationwide uniform contribution assessment ceiling for 2017 in statutory health insurance is 52.200 euros per year or 4.350 euros per month.
For social security reporting procedures, there is the employer company number. The legal regulations stipulate that from 1 January 2017, the application can only be submitted electronically. You can use the Online application to obtain a company number.
The Bureaucracy Reduction Act is intended to bring some changes for businesses. However, it will likely not be put to a vote in the Bundestag until early 2017, meaning the law will not come into effect immediately at the beginning of the year.
Electricity prices are rising in 2017. The reason is the green electricity surcharge, the surcharge for wind and solar power and other renewable energies, which will be raised to 6,88 cents per kilowatt hour. It currently stands at 6,35 cents. For Holger Schwannecke, Secretary General of the Central Association of German Skilled Crafts (ZDH), the EEG surcharge has now reached the pain threshold for skilled craftsmen.
From January 1, employers and posting employees from abroad must submit minimum wage reports via an online portal. As of January 1, 2017, reports should be submitted online via the minimum wage reporting portal, according to customs authorities. Submission of reports by fax is only possible until June 30, 2017. The minimum wage reporting portal can be accessed from January 1, 2017, via www.meldeportal-mindestlohn.de The site is currently under construction. After a registration process, reports can be submitted online.
The central procurement offices of the federal government, the states and municipalities must, by 18 April 2017, completely on electronic procurement change.
Starting next year, recipients of an old-age pension will be able to earn additional income more flexibly before reaching the standard retirement age. This is regulated by the so-called Flexi-pensionAnyone who has reached the standard retirement age and continues to work can – upon request – increase their pension. This applies not only to employees, but also to self-employed craftspeople who have continued to contribute to the statutory pension fund beyond the 18 years of mandatory membership. The age at which special contributions can be made to offset deductions is to be reduced from 55 to 50.
The 4th EU Anti-Money Laundering Directive of 2015 is to be implemented into national law by June 2017. Among other things, it stipulates that commercial traders in goods must identify their customers for cash payments of €10.000 or more. The current limit is €15.000. More on this topic Money laundering.
All new heating systems that use logs, pellets, or other solid fuels must meet the efficiency and emissions requirements of an Ecodesign Directive starting April 1, 2017. The North Rhine-Westphalia Consumer Advice Center points this out. This applies to all boilers and combined heating systems with a heat output of up to 500 kW. Devices with an output of up to 70 kW will also receive an efficiency label, which indicates classes A+++ to G.
Since 2016, there has been a separate energy efficiency label for existing heating appliances, the so-called "National Efficiency Label for Old Appliances." As of 2017, district chimney sweeps are required to label all appliances not yet labeled, staggered by year of manufacture. Consumer advice centers point this out.
For workshops that also carry out general inspections, the protection for old headlight adjustment devices expires at the end of the year. If the devices comply with 1 January 2017 does not meet the requirements, no further examinations may be carried out.
In the future, the insolvency administrator will no longer be able to challenge legal transactions retroactively for ten years simply because installment payments were agreed upon. The reform could be passed soon. The exact date had not yet been determined at the time of publication.
The insolvency benefit levy rate will decrease from 0,12 to 0,09 percent next year. Employees are entitled to insolvency benefit, which is financed through a monthly levy paid by employers. Payments are also required for trainees and those with mini-jobs. This insolvency benefit levy (U3) is borne solely by the employer and is due monthly.
As of January 1, 2017, stricter regulations will apply to all cash registers and cash registers. By then, all business transactions (individual records) must be recorded completely, accurately, timely, and unalterable. This data must be made available to the auditor at any time, legible and machine-readable, for a retention period of at least ten years. Otherwise, tax assessments may result in additional tax assessments or fines.
Since July 2016, there has also been a Bill , which proposes further tightening of regulations for 2020 or 2022. However, the new requirements for 2017 apply independently of the draft law. If you are considering purchasing a new cash register system, you should keep the new law in mind.
For most drivers, the type class of their motor vehicle liability insurance will remain unchanged next year: Compared to last year, the type class classification for most models has changed little or not at all. Depending on the type of insurance, only around one to three percent of vehicles moved up or down by more than one class.
The situation is similar with the Regional classes Of the more than 33 million fully or partially comprehensive insured persons, almost two million will slip into lower regional classes and almost 2,4 million into higher regional classes; for the other insured persons, everything will remain the same.
The Federal Ministry of Finance plans to increase the child allowance, child benefit, and child supplement in 2017 and 2018. The child allowance will increase by €108 (2017) and by a further €72 to €4.788 (2018). The child supplement will increase by €10 per month to €170 per child effective January 1, 2017.
By 1 January 2017, the Child benefit by two euros to 192 euros for the first and second child, to 198 euros for the third child and to 223 euros for the fourth child.
Good news for many companies – including those in the skilled trades: the contribution rate for artists’ social insurance will fall from 5,2 to 4,8 percent in 2017.
The Federal Ministry of Finance has decided to reduce the maximum actuarial interest rate – often colloquially called the guaranteed interest rate – for life insurance policies to 0,9 percent effective January 1, 2017. Existing life and pension insurance policies with a guaranteed interest rate are not affected by the reduction in the maximum actuarial interest rate. Only for new contracts concluded from January 1, 2017, will the guaranteed benefit for customers be lower. The guaranteed interest rate is the maximum interest rate that insurance companies are permitted to promise their customers on the savings portion of the premium. The reduced guaranteed interest rate also applies to all new Riester and Rürup policies, direct insurance policies for occupational pension plans, and some pension fund contracts.
Starting next year, new tax rules will apply to lump-sum payouts from life insurance policies. The German Insurance Association (GDV) has announced this. Customers who took out a life insurance policy or annuity insurance policy with a lump-sum option after 2004 will be required to pay half of the difference between the insurance benefit and the premiums paid in, based on their individual rate. This is subject to tax on the difference between the insurance benefit and the premiums paid in, provided they are at least 60 years old at the time of the payout and the contract has been in effect for at least twelve years. This latter condition will be met for the first time next year, meaning the rule change passed in 2004 will take effect in 2017. However, this does not apply to lump-sum payouts from policies taken out before 2005. These remain tax-free.
temporary workers Starting April 1, 2017, they will receive the same salary as permanent employees after nine months. At the same time, the maximum assignment period will be limited to 18 months. However, exceptions are possible in both cases if collective agreements stipulate otherwise.
Employers are currently receiving important Mail from your BG or accident insurance fundThere you'll find the access data for the new digital wage statement. Instead of using paper, employers will now report wages, working hours, and the number of employees to the accident insurance agency online. The German Social Accident Insurance (DGUV) is pointing this out.
Attention: There is a two-year transition period during which the wage statement must be submitted twice. In addition to the digital wage statement, wage statements for the 2016 and 2017 contribution years must be submitted using the existing procedures – online, as a paper printout, or by fax – for these years. For the 2018 contribution year, i.e., from January 1, 2019, the report will then be submitted exclusively with the digital wage statement using the new accident insurance reporting procedure. This transitional arrangement is intended to ensure that companies' contributions continue to be calculated correctly in the future.
Craftsmen are entitled to compensation for their removal and installation costs in the case of defective materials from the dealer. However, according to the Bill Sellers should exclude liability towards commercial customers in their general terms and conditions (GTC). The ZDH calls for GTC protection for craft businesses, and furthermore, the reform should apply to all cases in which defective material is processed. Adoption in December 2016 is conceivable. The exact date had not yet been determined at the time of publication. More on Theme.
The new statutory minimum wage In Germany, it has been established: From the beginning of 2017, employers must pay at least €8,84 gross per hour. This is 34 cents more than in 2016. In addition to the statutory minimum wage, many sectors have their own minimum wages, some of which will also increase in 2017. For roofers, for example, the minimum wage will then be €12,25, and for electricians €10,65 (in western Germany except Berlin). For scaffolding workers, the minimum wage will rise nationwide to €11,00 in May 2017. In the stonemasonry and stone carving trades, the minimum wage will rise to €11,40 in May 2017 (in western Germany). Minimum wages will also rise for building cleaners.
A lot is changing for mini-jobbers in 2017, too: The increase in the minimum wage also applies to them: After the minimum wage has been adjusted to €8,84, mini-jobbers will reach the permitted €450 per month after just 50 hours and 54 minutes. Employers of mini-jobbers who exceed the monthly earnings limit of €450 should therefore reassess existing employment as of January 1, 2017, recommends the Mini job headquartersIf working hours are not adjusted, the increase in hourly wages could result in the annual salary limit of EUR 5.400 being exceeded.
The Flexipension Act also affects mini-jobs. As of January 1, 2017, full-age pensioners with a mini-job can pay pension insurance contributions to increase their pension. What's new: If a full-age pensioner takes on a 450-euro mini-job before reaching the standard retirement age, they are subject to pension insurance contributions until they reach the standard retirement age, explains the Mini job headquartersHowever, a mini-jobber can be exempted from pension insurance contributions. However, if a full-time pensioner takes on a mini-job after reaching the standard retirement age, they are exempt from pension insurance contributions as of January 1. Pension insurance contributions for their mini-job end at the end of the calendar month in which they reach the standard retirement age.
For companies participating in the U1 levy system, there will be a small reduction for mini-jobbers starting January 1, 2017. The levy 1, which is levied on employer-sponsored sickness expenses (U1), will then decrease from 1,0 to 0,9 percent. The reimbursement rate remains unchanged at 80 percent.
Companies must carry out additional risk assessments for each workplace or activity in relation to the Maternity Protection In addition, there is a risk of increased fines, among other things.
Starting in 2017, the Care Strengthening Act II (Pflegestärkungsgesetz II) will take effect, considered the most significant care reform of all time. The most important changes: The current three care levels will be reduced to five, and the so-called "minute care" will be abolished. Those already in a care level will be protected. To finance the reform, the long-term care insurance contribution rate will increase by 0,2 percentage points on January 1 (see "Insurance Contributions").
Those who generate and consume their own electricity will have to pay more next year. The North Rhine-Westphalia Consumer Advice Center points this out. Currently, 35 percent of the EEG surcharge is due for each kilowatt-hour of self-consumption; from January 1, 2017, this will increase to 40 percent. However, systems with a capacity of less than ten kilowatts will continue to be exempt from the surcharge for the first 10.000 kilowatt-hours of self-consumption per year. This means that at least the owners of most photovoltaic systems on single- and two-family homes do not have to pay any surcharge at all.
In 2017, Reformation Day will be a national holiday. On Tuesday, October 31, 2017, all German states will be on holiday, and schools will be closed. This is to commemorate the 500th anniversary of Martin Luther's posting of the 99 Theses.
Smoke detectors will be mandatory nationwide in Germany starting in 2017 – in both new and existing buildings. In North Rhine-Westphalia and Saarland, the transition period for existing buildings will also end. Berlin is the last federal state to introduce mandatory smoke detector installation in new buildings, effective January 1, 2017. Only Saxony has not yet passed a smoke detector requirement for existing apartments.
A standardized product information sheet for government-subsidized retirement savings products will be introduced in 2017, according to the German Insurance Association (GDV). It contains the most important information on the product features of Riester or basic pensions on two pages. This includes the risk-reward profile, the effective costs, the expected maturity benefit or pension amount, as well as the costs of early termination of the contract or switching providers. The product information sheet thus allows for a comparison of different products—in the case of Riester, for example, insurance policies, funds, bank savings plans, or Wohnriester (residential Riester). It will be provided to customers before the contract is concluded and customized based on their information. In addition, companies must publish general sample information sheets based on a model customer.
As of June 15, 2017, the surcharges will be permanently abolished. From then on, Europeans will pay the same price for mobile phone calls while traveling within the EU as they do for mobile phone calls at home.
Starting January 1, 2017, the relevant values for non-cash benefits will only increase for free meals. The monthly value for meals will then be €241. This means that breakfast (reduced or free) will cost €1,70, and lunch or dinner will cost €3,17. The monthly value for accommodation and rent will remain unchanged at €223.
At the beginning of 2017, benefits will increase for everyone who cannot support themselves. This will most significantly affect standard benefits for children between 6 and 13 years of age. Effective January 1, they will receive €291 instead of the previous €270. The monthly amount for the long-term unemployed will also rise from the current €404 to €409 per month, and for couples from €364 to €368 per partner.
The new online portal "Social insurance for employers" is intended to make life easier for employers in small businesses starting in 2017: It aims to consolidate the various information from health insurance funds, pension and accident insurance providers, and the Federal Employment Agency. This should save employers time and, at the same time, relieve the burden on the hotlines of the individual social insurance providers. The website address is to be announced in early January.
The data on the social security card will be machine-readably encrypted starting January 1, 2017. This will allow the social security number to be incorporated into employers' processes more quickly and securely in the future.
In 2017 and 2018, the basic allowance per capita is to increase by 168 euros to 8.820 euros, and in 2018 by a further 180 euros to 9.000 euros.
Anyone who wants to claim donations or membership fees as special expenses for tax purposes must submit a donation receipt to the tax office. For donations up to €200 and in the event of a disaster, a "simplified receipt" is sufficient, such as a computer printout of the booking confirmation. Starting in 2017, the regulations regarding donation receipts will change. In the future, you will only be required to submit a donation receipt or simplified receipt if requested by the tax office. The tax office can request this for up to one year from the date of notification of the assessment. During this time, you must carefully retain all documents.
Alternative: However, the donor can also, as before, authorize the donation recipient to electronically transmit the donation receipt to the tax office. This has the advantage of eliminating the need to retain a donation receipt.
Starting with the 2017 tax year, a new deadline for tax returns applies: Tax returns must then be received by the tax office by July 31 of the following year (i.e., by July 31, 2018 for the 2017 tax return). Anyone who commissions a tax advisor to prepare their tax return will now have until February 28/29 of the following year to submit their tax returns. For the 2017 tax return, the deadline would therefore be February 28/29, 2019. Background: The amendment to the tax law took into account the need for tax advisors to have sufficient time to provide optimal advice.
Companies must from 1 February 2017 disclose whether they participate in consumer dispute resolution and provide information about this on their website and/or in their general terms and conditions. However, this information obligation does not apply to companies with ten or fewer employees.
The data center of the pension insurance institutions has been offering a new procedure since mid-2016: the Insurance number pre-inquiryThis allows the social security number to be determined directly from a system-certified payroll program. This should simplify processes for both employers and social insurance providers. Starting in 2017, every certified payroll program will be equipped with this function.
The extension of the filing deadlines (see tax return deadlines) also regulates the late filing penalty. Whether a late filing penalty is imposed will still be decided by the tax office clerk. However, in the future, the only decisive factor will be failure to meet the filing deadline. The late filing penalty also applies if the tax is 0 euros (zero assessment) or if a tax refund is received. A blind eye is generally turned to the first delay – unless a larger tax payment is due. For annual tax returns, this penalty amounts to 0,25 percent of the tax payment for each month or part of the month of delay, with a minimum of 25 euros per month.
Starting in 2017, all companies will be able to use the simplified contribution procedure, which allows them to use the previous month's contribution as a basis. However, it is not yet clear when the Bureaucracy Relief Act II will come into force; it is scheduled to return to the Bundestag in January. Experts, however, assume that there will be no changes in content.
The new "Ordinance on Facilities for Handling Substances Hazardous to Water" (AwSV) has now been published and will enter into force on August 1, 2017. For the first time, there is a uniform federal regulation in this area, which also applies to heating oil storage. The owner is and remains responsible for the proper condition of their tank system. Minor measures are necessary for existing heating oil tanks, such as retrofitting an anti-siphon valve or a fuel gauge on each tank, or converting to single-line operation.
There's an important new development for specialized businesses: The new AwSV (Waste Water and Waste Management Ordinance) expands the requirement to be a specialized business in some federal states and now applies nationwide to heating oil tanks with a volume greater than 1.000 liters. This requirement is new for Baden-Württemberg, Hesse, Mecklenburg-Western Pomerania, North Rhine-Westphalia, Saarland, Saxony-Anhalt, and Schleswig-Holstein. Here, craft businesses that are not yet certified as specialized businesses must do so by August 2017.
The inspection requirements for heating oil tanks are now also standardized nationwide, but have changed only marginally compared to previous state regulations. A recurring inspection requirement continues to apply to all underground tanks, to above-ground systems larger than 1.000 liters in protected areas, and to all tanks with a volume of more than 10.000 liters.
Starting in 2017, the amount of the continuing education scholarship will increase from €6.000 to €7.200. The continuing education scholarship can now be used not only for course costs but also for examination fees. There will also be an IT bonus: Scholarship recipients will receive a €250 grant if they want to purchase a computer.
Text: Kirsten Freund, Anne Kieserling, Ulrike Lotze/ Photo: © tiagozr/123RF.com
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