Self-employed - or better an employee?

The question of whether someone is engaged in dependent employment or self-employment is not always easy to answer. A misassessment of the situation can lead to legal and business risks for both parties involved. An incorrect evaluation could suggest that a so-called self-employed worker has been working for a company for several years. A few years later, the company for which the self-employed individual is working is subject to an audit by the German Pension Insurance. After a thorough examination, the audit concludes that the so-called self-employed worker is actually engaged in employment subject to social security contributions. Based on the audit findings, the insurance provider demands that the company pay back total social security contributions.