With the levy U1 the self-employed person receives a refund of the salary of his employee who is unable to work from his health insurance company. This reimbursement results from the legal obligation of the employer to continue to pay his employee's salary for up to 6 weeks in the event of illness. The employee then receives sick pay from his health insurance fund.
Only small companies have to pay U1 and U2 levies
This applies to companies with up to 20 employees, or up to 30 employees if there is a corresponding regulation in the articles of association.
The legal basis for this can be found in the German law on the compensation of expenses (AAG). The AAG came into force on 01.01.2006 came into force. The Act on the Compensation of Employer Expenses for Continued Remuneration (AAG) provides for some innovations compared to the previous compensation of employer expenses according to the LFZG.
The changes to levy U1 and U2
Levy 1 – Reimbursement in case of illness
Sickness reimbursement (levy 1) for all employees. The employee receives his net pay in the event of illness.
Employers participating in the U1 process receive from the U1 process To up to 80 of the remuneration payable under the Continued Remuneration Act and up to 80% of the employer's share of the total social security contribution payable thereon (§ 1 para. 1 AAG). These reimbursements can be limited by the statutes of the responsible health insurance company.
All employers are obliged to pay levy 1 (U1 – reimbursement of expenses in the event of illness), that do not employ more than 30 employees. For the apportionment obligation, the uniform number of employees of up to 30 applies. Employees who are not fully employed are calculated with the corresponding factors smaller than 1. Public employers and similar institutions do not participate in the equalization procedure.
Allocation 2 – Reimbursement for pregnancy and maternity
A similar regulation applies to the addition of maternity pay to net income. Here the employer receives 100 % of the continued payment of wages in the case of individual employment prohibitions and 100 % of the employer's share of the total social security contribution attributable thereto (§ 1 para. 2 AAG).
In addition, during the general ban on employment for pregnant women (generally six weeks before the birth and eight weeks after the birth), they are reimbursed in full for the maternity allowance they have paid out.
The statutes of the health insurance funds may include provisions for the lump-sum reimbursement of employer contributions. There is also no longer a restriction on the number of employees. The corresponding apportionment is referred to as U2.
All employers are obliged to pay levy 2 (U2 – reimbursement of expenses for pregnancy and maternity), regardless of the number of employees and the type of business.
This will result in an expansion of the U2 levy to all businesses and companies as well as to public institutions.
Reimbursement of wages
In the case of employees with statutory health insurance
Reimbursement of employer's expenses is received by the employer from the health insurance fund with which its employee is insured.
For privately insured employees
In the case of employees not covered by statutory health insurance, i.e. privately insured employees, the responsibility is based on the payment of the remaining social security contributions. IdR. the statutory pension insurance takes over these duties. In the case of marginally employed persons (450 Euro jobs). Short-term employment), the compensation procedures of the Minijob-Zentrale are responsible.
Who carries out the right to compensation?
Up to now, not all health insurance funds carried out the compensation of the employer's expenses. In the future, every health insurance fund, with the exception of the agricultural health insurance fund, will reimburse the employer for the expenses of the employee or trainee insured there.