Concept and legal basis of the collecting agency
Definition of the collecting agency
Als Collecting agency are institutions in Germany responsible for the central collection and forwarding of social security contributions. Thus, the collecting agency covers all contribution-relevant shares for statutory health insurance, long-term care insurance, pension insurance, and unemployment insurance. Collecting agencies act as a link between employers, employees, other contributors, and the respective social insurance carriers.
Statutory foundations
The legal framework for the activities of collecting agencies is regulated in the Fourth Book of the Social Code (SGB IV), in particular in §§ 28i to 28n SGB IV. Further relevant regulations can be found in the Fifth, Sixth, and Third Books of the Social Code (SGB V, SGB VI, SGB III) and in the Eleventh Book of the Social Code (SGB XI) in connection with the payment of the respective contributions.
According to § 28h para. 2 SGB IV and § 28i SGB IV, health insurance funds are the statutory collecting agencies for total social security contributions. They receive the contributions as a joint entity, check and administer them, and forward the respective contribution shares to the other social insurance carriers.
Responsibility and tasks of the collecting agency
Responsibility of the health insurance funds
The collecting agency function is assigned to the statutory health insurance funds (§ 28i SGB IV). The employer selects the health insurance fund that acts as the collecting agency for the employee subject to compulsory insurance. In certain cases – for example, with marginal employment – the Minijob-Zentrale may be responsible as a special form of collecting agency.
Tasks and duties
The core duties of the collecting agencies include:
- Contribution collection procedures: Collection of employee and employer contributions for statutory health, long-term care, pension, and unemployment insurance.
- Notifications and verifications: Receipt and verification of contribution statements and social insurance notifications from employers (§ 28f SGB IV).
- Auditing and control obligations: Control of contribution liability and accuracy of submitted notifications as well as informing the involved carriers.
- Forwarding of contributions: Proportional allocation and forwarding of paid contributions to the Federal Employment Agency, the German Pension Insurance, and, if applicable, the long-term care insurance funds.
- Special tasks: Handling and management of reimbursements within the framework of the Expense Compensation Act (AAG) as well as collection of special contributions (e.g., insolvency allowance levy).
Procedures in contributions and notification management
Contribution reporting procedures
Employers are required to pay social security contributions monthly, no later than the third-to-last banking day before the end of the month, to the collecting agency (§ 23 para. 1 SGB IV). The contribution statement must be submitted electronically to the collecting agency, which then forwards the respective shares to the other social insurance carriers.
Billing and auditing processes
The collecting agency reviews the submitted data and may make corrections or retroactive calculations if necessary. In the course of company audits by the German Pension Insurance, the proper payment of social security contributions and the fulfillment of notification obligations are checked using the documents provided by the collecting agency.
Special aspects of the collecting agency function
Special regulations for marginal employment
For employees in marginal employment (minijobs), the Minijob-Zentrale of the Deutsche Rentenversicherung Knappschaft-Bahn-See centrally assumes the function of collecting agency according to § 28i para. 2 SGB IV. Contributions and notifications are made exclusively to this central office.
Correction procedures and change of collecting agency
If there is a change in health insurance affiliation, the new health insurance is to be designated as the collecting agency. Corrections to contribution statements or retroactive contribution adjustments must be made in agreement with and regularly upon submission of supporting documents to the collecting agency.
Legal protection in connection with collecting agencies
Decisions of the collecting agencies (e.g., regarding contribution liability or the amount of contributions to be paid) constitute administrative acts in the sense of social security law. Legal recourse to the social courts is available against such decisions. This applies both to employers and insured persons if they are affected by measures or determinations.
Significance and distinction
The collecting agency is not a separate social security carrier but a functional part of the social insurance carriers designated by law, in particular statutory health insurance funds or special agencies such as the Minijob-Zentrale. It is a central administrative unit in the notification and contribution system of social insurance and ensures the proper financing of social security systems in Germany.
Literature and web links
- Social Code IV, V, VI, III, XI (SGB IV, SGB V, SGB VI, SGB III, SGB XI)
- Deutsche Rentenversicherung – Company audits and contribution system
- Information from statutory health insurance carriers on the contribution procedure
- Minijob-Zentrale
The term Collecting agency is a central element of the German social security system and plays a significant role in the organization, control, and assurance of contribution management. Collecting agencies act in a legally binding manner towards employers and insured persons and ensure the proper handling of all processes in social insurance contribution and notification procedures.
Frequently asked questions
How is the responsible collecting agency selected within the framework of statutory health insurance?
In the legal context, the selection of the responsible collecting agency is regularly made by the choice of the employee in accordance with § 28h SGB IV. The collecting agency is generally the health insurance fund with which the member is insured. If the employee does not select their own health insurance fund, the fund of their spouse or parent assumes this role. If there is still no clear assignment, the employer makes the choice. The collecting agency is primarily responsible for collecting all social security contributions (health, long-term care, pension, and unemployment insurance) and forwarding them to the respective carriers. It is especially important that the selection of the collecting agency be made immediately after the start of employment in order to ensure a smooth notification and contribution process. Changes in health insurance affiliation must be immediately reported to the employer so that the change of collecting agency can be implemented correctly. The legal basis for the selection and change of the collecting agency and the transmission of required data is detailed in the Fourth Book of the Social Code (SGB IV).
What legal obligations do employers have in connection with the collecting agency?
Employers are legally obliged to submit notifications and contribution statements to the social security system on time and in full to the responsible collecting agency (§ 28a, § 28c SGB IV). This includes the monthly submission of contribution statements, the correct calculation of contributions, and compliance with due dates. In addition, employers must register their employees with the responsible collecting agency at the start, change, or termination of employment. Violations of these obligations, such as late or incorrect notifications, may be qualified as administrative offenses under § 111 SGB IV and may be sanctioned with fines. Employers must also ensure that all relevant obligations under social insurance law are met in order to avoid liability risks and subsequent claims.
What are the legal consequences of incorrect contribution payments to the collecting agency?
Incorrect or late payment of social security contributions to the collecting agency results in significant legal consequences. In addition to claiming the outstanding contributions including late payment surcharges (§ 24 SGB IV), the collecting agency can impose fines. In serious cases, the criminal offense of withholding and misappropriating wages (§ 266a StGB) may also apply, punishable by monetary penalties or imprisonment. The collecting agency is also entitled to carry out company audits to check the proper payment of contributions. Employers therefore bear a considerable liability risk and are required to strictly comply with the regulations.
How does the review by the collecting agency take place and what rights does it have?
The collecting agency is authorized to conduct audits at employers’ premises to ensure the correct calculation and payment of social security contributions (§ 28p SGB IV). It may request access to payroll records, accounting documents, and other relevant documents. Employers are required to provide the necessary documents and information. The collecting agency can also conduct unannounced on-site inspections. If irregularities are found, it is obliged to report these and, if necessary, to coordinate further actions with other social insurance carriers or the Deutsche Rentenversicherung. The legal framework for such audits is clearly regulated in SGB IV.
How is the procedure in case of disagreements with the collecting agency regulated?
If there are disagreements or disputes with the collecting agency, for example regarding the calculation or allocation of contributions, an objection to administrative acts of the collecting agency can first be lodged (§ 83 SGG in conjunction with § 78 SGG). The objection must be submitted to the collecting agency within one month after notification of the decision. If the objection is not granted, legal recourse may be taken to the social court by filing a lawsuit. As a rule, payment obligations continue until the matter is resolved, unless a formal application for suspension of enforcement is submitted and granted. The collecting agency is obliged to inform those affected about their rights and deadlines.
Who is the responsible collecting agency in the case of marginal employment and how is this regulated legally?
For marginal employees, the Minijob-Zentrale, as the central collecting agency of the Deutsche Rentenversicherung Knappschaft-Bahn-See, assumes the tasks of a collecting agency (§ 28i SGB IV in conjunction with § 6 BVG). Employers who hire marginally paid employees are required to handle all contribution and notification obligations exclusively through the Minijob-Zentrale. This applies regardless of the employee’s individual health insurance. The Minijob-Zentrale handles both the registration of employment relationships and the collection and forwarding of social security contributions.
In which cases may a change of collecting agency become legally necessary?
A legally required change of collecting agency may be necessary, in particular, if the employee changes health insurance funds or if the employment relationship is terminated and the employee moves to another employer (§ 175 SGB V, § 28h SGB IV). In case of a change of health insurance fund, the employer is required to inform the new collecting agency before the first day of the month in which the change becomes effective and to pay future contributions to the new health insurance fund. Relevant notifications must also be made in case of suspension or interruption of employment. The notification procedure and modalities of the change are detailed in SGB IV and its accompanying regulations.
