It’s finally here, the first day of a new intern. Everything is still unfamiliar and exciting. But there is not only excitement among the intern himself, because there are also some special features in payroll accounting that must be considered when accounting for interns.
The type of internship is decisive.
Labour law sees the decisive basis for the proper accounting of interns in the distinction between voluntary and mandatory internships. In addition, it depends on the level of training of the respective intern: In the context of a student internship, remuneration is usually waived, while student internships can also be billed as a mini-job, among other things. However, this depends on the phase of the course in which the internship is completed. Although the regular regulations of the Income Tax Act apply, it depends on the respective internship phase whether and how much social security contribution is to be paid.
How do the internship phases differ?
While some interns eagerly work hard to make as positive an impression as possible on the company, the company – and especially the payroll department – must be aware of the type of internship being completed – the internship phase is also crucial for student internships. A student internship can be completed before, during or after a course of study.
The simplest form of payroll accounting is a mandatory internship during your studies. Why? Regardless of whether the internship is remunerated or not, no social security contributions are to be paid.
But what do I have to consider when it comes to internships that must be completed before or after a course of study?
The amount of social security contributions to be paid depends on a possible remuneration for the intern. Fixed amounts must be paid for unemployment and pension insurance, even if no remuneration is paid to the intern.
However, as soon as the intern receives remuneration for his or her efforts, both unemployment and pension insurance as well as health and long-term care insurance are to be borne by the employer alone – but this only applies up to a remuneration of EUR 325. Above this remuneration rate, half of the contributions are paid in each case. It is important to know that no mini-job relationship is possible for such interns.
And in the case of voluntary internships?
Different regulations also apply here. In the case of a voluntary internship during the study period, there are no other taxes except for pension insurance contributions.
This is different from voluntary internships that are completed before or after a degree. From the entrepreneur’s point of view, this is a regular employment relationship, and of course the duration and remuneration for the work done must be taken into account – among other things, it is possible to bill the hard-working intern as a mini-jobber.
Make the right considerations.
Even in the case of relatively short employment relationships, there are some regulations and special features. There is not only a lot of new things to learn for a new intern. If companies are clear about the ratio in which an intern will be hired, there is also a clear procedure for the payroll department.
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