Checklist for hiring your first employee:
1. Apply for a company number:
Apply for a company number (Betriebsnummer) from the Federal Employment Agency (Bundesagentur für Arbeit) so you can meet your reporting obligations towards the health insurance fund.
2. Record employee data:
With cleverlohn, you can enter all personnel data directly in the software and invite the employee to the platform. All relevant data is then requested and stored there. Besides personal data, this includes the pension insurance number, the health insurance fund's membership certificate and other industry-specific documents. A copy of the ID card is also required.
3. Draw up an employment contract:
Draw up a written employment contract that contains key details such as the names and addresses of employer and employee, place of work, job description, working hours, holiday entitlement, notice periods and pay. Ideally, get advice from an experienced lawyer.
4. Registration with social security:
Register the employee with the responsible health insurance fund. This determines the collecting agency for social security contributions. Check whether certain industries require an immediate notification (Sofortmeldung). In many cases, your payroll office handles this part for you. Check with your payroll office how they handle it.
5. Registration with accident insurance:
Register the employee with the employers' liability insurance association (Berufsgenossenschaft), whatever the type of employment.
6. Registration with the tax office:
Register the employee with the tax office (Finanzamt). Pay the wage tax deductions on time.
7. Optional registration with the public health office:
Depending on the industry you or the employee will work in, you may need to register the employee with the public health office (Gesundheitsamt). If you produce, process or sell food, register the employee with the public health office. Make sure they get a health clearance certificate.
Conclusion
This checklist gives you a very good guide to follow when you hire your first employee. If needed, get support from an expert to avoid mistakes and make the hiring process run smoothly. During the employment, keep in mind that data can change, for example when the employee moves house. So make sure you are informed of any changes.
