Brief definition
Employee registration procedure refers to the employer's electronic notifications to social insurance institutions concerning employees. In Germany, this procedure is carried out in accordance with the specifications of the German pension insurance (Data Capture and Transmission Regulation).
The procedure is an integral part of the Payroll and forms the basis for allocating insurance periods and contributions in social insurance.
Basics
Employers submit social security-relevant employee data electronically. The reporting procedure ensures that employment periods and liable earnings can be processed correctly.
Motto
Without the correct reporting procedure, contribution allocation and insurance history are not reliable. This applies in every industry – including construction.
Legal framework
The employee reporting procedure for social insurance is regulated by law in Germany and is technically handled via standardised data sets and electronic transmission. The Data Capture and Transmission Ordinance (DEÜV) is decisive.
In addition, other electronic procedures exist in practice, for example in the area of income tax (ELStAM). However, these do not belong to the social security employee reporting procedure but are independent procedures.
Which types of notifications the procedure typically covers
Within the reporting procedure, reports are typically required at the beginning, during, and at the end of an employment relationship's lifecycle. This includes, in particular, reports for changes and for periodic confirmations.
Note
The notifications required in a specific case depend on the type of employment and the event in question. Correct master data and payroll recording are crucial.
What data needs to be clean for this
- Personal and employment master data (e.g. social security number, employment start date)
- Billing-relevant charge data (e.g. Gross social insurance contribution)
- Assignment to responsible authorities (e.g., collection agency)
- Documentation of changes (e.g., status or contract changes)
Typical billing process
- Record and check master data
- Record start of employment/changes in the payroll system
- Determine and plausibilise charges
- Generate and transmit electronic notifications
- Review and document feedback/minutes
Classification in the construction industry
In the construction industry, DEÜV social security reports remain the basis. However, depending on the collective agreement classification, additional procedures are added, which are connected with the Payroll accounting are connected. These include, in particular, notifications within the framework of the social security fund procedure regarding SOKA-BAU inclusive ULAK and ZVK) and other industry-specific certifications.
For more on the bigger picture, see Building notification requirements.
Typical sources of error
- Incomplete or incorrect master data (e.g. insurance number)
- Changes not reflected in the system in a timely manner
- Discrepancies between billing and reporting data
- Feedback/records not checked or not documented
FAQ
What is the employee reporting procedure?
The employer's electronic notifications of employees to social insurance carriers in accordance with the provisions of the DEÜV.
Does this have something to do with ELStAM?
ELStAM is its own electronic procedure in the payroll tax area. The employee reporting procedure relates to social security notifications.
What else needs to be considered during construction?
In addition to the general social security notifications, further notifications may be required under the social security fund procedure depending on the tariff classification. However, the social security notification procedure remains the basis.
Conclusion
The employee reporting procedure is the basis for the electronic submission of employee data relevant to social security. In construction payroll practice, it is important that master data, remuneration, and changes are correctly recorded and that notifications and feedback are cleanly documented.
Brasser Accounting Solutions GmbH is a specialised accounting service provider and part of a corporate group with Quint GmbH (tax consultancy/auditing) and Service Place Årjäng AB (Swedish tax office). BAS exclusively performs services according to § 6 No. 3 and 4 StBerG and does not provide tax or legal advice.
