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Thursday, 18 June 2009

Artists Social Welfare Fund - tighter controls

Risk estimate itself - definitely not threaten arrears

The average income of freelance artists and publicists in Germany, despite the financial crisis in just two years by 18 percent. Why?

Selling art and culture precisely now better than before? Or have a particularly large number of freelance artists and publicists won the lottery? The average income of 162,734 self-employed, on 1st January 2009 on the Artists' Social Welfare Fund (KSK) were insured, has since January 2007 has increased from € 11,094 to € 13,103.

More Artists sample by social class

The main reason for the miraculous multiplication income considers the KSK since the fall of 2007 tightened controls on the income projections. The federal government had the KSK was obliged to annually 5 percent of the insured to the actual amount of their income to control - and with four years ago reaching sampling. Many insured then apparently ran up a sweat and lifted its earnings forecast controling by free personal finance software and other money tools.

Artists should avoid poverty in old age

The Künstlersozialversicherung Act adopted in 1983, it serves the "social protection in the statutory pension, health and long-term care" and is free-lance artists and writers from acting, under the age of the poverty line to fall. Who ever and freelancing in the areas of word, visual art, music or performing arts activities, is supported by the KSK insured. The state gives each insured for a grant in the amount of 50 percent, ie a kind of employer that he is working for publishers, museums and other artistic entities other than tax back.

Earnings estimate

Absolutely unique in comparison to other professions, the income method of estimating the insured will be invited to their annual income (after deduction of any operating costs) to estimate in advance and can do this during the year to revise as often as their situation changes, will always be billed at beginning of the following month.
Earnings forecast: at least € 3,900

Experts suspect that few of the insured her real income in the estimation to determine why. Some members tend to under-insurance, to save money or because they are the 'safe' pensions' distrust of BfA: You insure themselves just slightly above the minimum limit of € 3,900 annual income (325 € a month) and give the money for private retirement rather from if at all. Advantage: The health insurance contributions are thus also low. Disadvantage: The state pension expectation is low, and risky assets can be lost depending on the carelessness of the artist. Also, these debts in case attached, this comes at uncertain "business situation" be present.

Income Forecast: maximum € 64,800

Other insured persons are below the minimum threshold but want to not lose their insurance coverage and therefore give an income of about € 3,900. Some will turn to the other extreme and declare an income that is above the statutory ceiling for the pension is (64,800 € in 2009, in the new Länder € 54,600). The result: You pay while high contributions (currently just under 900 € a month), but also get a large government grant, and acquire higher pension entitlements.

KSK threatened with fines and anger

To perform such tricks in one direction or the other, reducing the federal government demanded more controls. The guide "mediafon" for self-employed in the trade union ver.di therefore raised the forefinger warningly: "He no longer can demonstrate that he or artistically self-publishing activities should be based on considerable anger lie in wait around free home budget software. Anyone who deliberately false information, such as higher subsidies for private health insurance to wrongfully, can even become a verdonnert be fine. "

KSK members threaten no arrears

Too massive insecurity for freelance journalists, musicians, stage designers, directors, non-salaried actors and other self-employed but resulted in black painting media reports, for example, in the journal Financial Review: "If it is found that the KSK members have achieved higher incomes than previously estimated they have to pay contributions by monthly budget planner tools. "The excitement was great, sometimes holding up today, but it is unfounded: The KSK adjusts the income estimate and thus the contributions due to the control only for the future of the figures of the income tax notice of. There is no legal basis for a retroactive adjustment and arrears.

How it works: Example

This procedure would also have non-lawyers be obvious: It may not have rights, as the following example. An artist who unexpectedly in December 2008 sold a large sculpture and to get a high amount, say € 10,000, can this income (after deduction of operating costs) in the same month, according to the report KSK and thus theoretically be declared annual income increase, retroactively changes for the past year but not in its monthly budget calculator. Extend for December was the pension contribution ceiling is taken into account (this was 5300 € and 4.500 € in the new federal states) in January and make a contribution deducted. But the message came too late for the KSK accounting, nothing happened except a call, the forecast for 2009 to review and possibly modify.
Bogeyman Bankruptcy

Opel, Arcandor and other problem children

The insolvency at Arcandor still dominated the coverage. Previously Opel is this' destiny 'just escape. But what does' bankruptcy '?

The discussion about a possible bankruptcy at Opel, the media landscape dominated over weeks. In the case Arcandor is actually one of the largest Unternehmenspleiten in the history of the Federal Republic of Germany has come.

I like bankruptcy insolvency?

It is obvious great ignorance of the consequences of bankruptcy. Even at the highest political level, the differences to the bankruptcy not always present. The vernacular has the habit of right views on many decades to preserve - as, for example, still talked about a legacy "to stand", although it has since more than 100 years is no longer true. Considering that the new bankruptcy regulations only existed for ten years, is the pervasive uncertainty in the event of bankruptcy, therefore, not surprising.

The fundamental difference is that the unfixed bankruptcy policy, since 1877 (!) Was, in the case of insolvency of a company in principle, the task of business operations and the liquidation of the company for reinvestment.

The purpose of the imported 01.01.1999 Insolvenzordnung is opposed to the operations at over-or under insolvency still possible to maintain. Section 1 of the Bankruptcy Rules provides for the insolvency plan before.

How it works?

The bankrupt can the company itself or a believer in the local bankruptcy court. In the case of Opel, the German government cash injections administered has resigned due to a lack of insolvency of a request by creditors, which is now going to the "boom period" led. Arcandor, however, had little choice, for example, after the rent to the owner of the store property to be set personal finance budgeting. One would probably bankrupt anyway from a third party has been made.

Consequence of the application is that an insolvency administrator is used and the debtor loses the right, his ailing assets to manage. The whole thing is actually a not completely dissimilar incapacitation.

The administrator shall analyze property values and creates an overview of the economic situation of the company and its prospects, a way out of misery to find one speaks here of the so-called redevelopment concept. Thereafter, the so-called creditors' meeting, if a bankruptcy plan is completed, or whether the remaining assets are divided.

The risk of insolvency

That is in the public debate mentioned a risk of insolvency. Because if the creditors' meeting an insolvency plan does not agree, go - loosely said - the lights. As a rule, but the creditors have an interest in the continuation of the company, so they at least get their money long term. A liquidation is because simply not enough wealth there is only carried out proportionately personal budget planning.

A simple example: The debts of a company is 100 million euros. The residual value of the company but only for a total of 15 million euros. Then, each creditor receives only fifteen percent of its refund claim. For example, a vendor, an amount of EUR 100,000 from a material delivery, then he receives only 15,000 EUR. In addition, the court costs and the remuneration of the liquidator be deducted in advance. For this reason, it is unlikely that a chance at continuing the company's creditors, make a personal budget the insolvency plan torpedo.

and what that might mean

It is therefore quite open which of the two - Opel or Arcandor - the "better" path has. Should there still be a bankruptcy at Opel, so if you had simply lost several months, where already the reorganization of the group, similar to GM in the U.S., attack would take. The security gained by the additional credits in any case is only borrowed and therefore deceptive.
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