Overview

A1 Certificate – Avoiding Double Payment of Social Security Contributions

Background
When employees are temporarily posted abroad, social security contributions become due both in Germany and in the foreign country. However, under certain conditions, German regulations continue to apply if the employee is posted to another EU country, Iceland, Liechtenstein, Norway, or Switzerland. To avoid double payment of contributions, the posted employee must provide an A1 Certificate in the respective country.

Application
Starting from January 1, 2019, machine-based application for the certificate will be mandatory. The application for issuing the A1 Certificate should be made to the health insurance company. In the case of privately insured employees, the application should be made to the German Pension Insurance. Failure to provide the certificate may result in fines. If German social security regulations apply, the employer will receive the A1 Certificate, which they must provide to their employee. From July 1, 2018, social security agencies should also be able to respond electronically.

SAP Update as of July 6, 2018: Delivery is scheduled for the turn of the year 2018/2019. (see SAP note)

We are here to help!
If you have any questions regarding the A1 Certificate, machine-based application, or its implementation in your SAP HCM system, we are at your service.

Author: Sean Schröpfer