As the term mini-job makes clear, this is a low-paid job. Here we explain the tax implications of a mini-job and whether you have to declare it in your tax return.
What is a mini-job?
A mini-job is determined either by an earnings limit or a time limit. A distinction is made between 520-euro minijobs and short-term minijobs.
In the case of a 520-euro mini-job, the employee may not earn more than 520 euros on a regular basis. As soon as this amount, extrapolated over the year (i.e. x 12), is exceeded, it is no longer a mini-job. In individual months, however, you may earn more than 520 euros if you compensate for this in other months and earn less.
Is a mini-job taxable?
In principle, a mini-job is taxable. Your income can either be taxed at a flat rate or individually according to the information you provide on your electronic annual payslip.
Your employer determines the type of taxation. If he decides on the flat-rate tax, the 520 euros are tax-free for you. In this case, the employer alone pays the wage tax amounting to 2 percent of the gross salary.
Flat-rate taxation is the rule for mini-jobs. With this type of taxation, you do not have to declare your income in your tax return. In return, however, you cannot claim any income-related expenses.
If the mini-job is taxed at a flat rate, you will not receive an annual payslip (Lohnsteuerbescheinigung) from your employer.
In contrast to the 520-Euro-Job, a short-term employment is an activity that has been fixed in advance for a certain period of time. This type of employment may last a maximum of 3 months, provided that a 5-day week is assumed. If you work less than 5 days per week, the limit is 70 working days per year.
For short-term jobs, it does not matter how much money you earn. However, short-term employment must not be carried out on a professional basis. This means that the job should play a subordinate economic role for you as an employee.
How are short-term employments taxed?
The income from short-term employment is subject to tax. Here, all income must be taxed. This is done either as a lump sum or individually.
Individual taxation here also means according to your individual wage tax deduction characteristics. The flat-rate deduction for short-term employment is 20 percent. However, this is only possible if:
- The employment is only occasional (not recurring)
- There is a maximum working time of 18 consecutive days
- A working day wage of 62 euros is not exceeded (average hourly wage of max. 12 euros)