Hello,
as initiative for more transparency, I would like to share more from “the machine room” of TDF. Many things at TDF happen silently in the background, but frequently take a lot of time (and money), and I think our members and the community deserve a better understanding what is required to run a foundation.
Contrary to what sometimes is assumed, many of these regulations are not specific to TDF, or to a not-for-profit organization, or even to Germany. Several regulations apply for not-for-profits and commercial entities all over Europe, sometimes even worldwide, so I hope these postings will help also other FLOSS projects as part of their work.
Much of what I write is also relevant for board members to understand their responsibilities and duties, because ultimately, the board is in charge, responsible and liable for the proper operation of TDF and must be in a position to oversee that all is happening properly.
These postings are not to be considered legal advice. They might be wrong, incomplete, outdated or contain glitches and errors, or for better understanding might sometimes shorten the explanation. They might also get outdated over the course of time, with changing regulations. They should provide an initial overview, but are provided “as-is”, to be used at your own risk.
The first topic I’d like to present in this series is the so-called
A1 confirmation
Upfront disclaimer: The topic is likely as boring as it sounds…
In place for a while, A1 confirmations have gained much more attention over the past couple of years, when on one hand, an electronic filing was made possible, and on the other hand, more checks and audits were put in place.
Simply put, an A1 confirmation is a confirmation which social security regulations apply for you, and are relevant when you work temporarily in a foreign country.
There are various rules affecting work from abroad, like insurances or taxes. As one example, if you are resident of a country for more than half of the year, your tax status migth change. The A1 confirmation in particular is around the social security system applicable for you.
If someone employed in an European country temporarily works in another European country, they need to get their social security status confirmed in the A1. This applies for any work, however big or small, short or long it is. In particular conferences, but even attending an event in another country for just one hour.
Don’t go after the messenger: I am not arguing for how things are setup (I do have my opinion on that for sure…), but explain the regulations.
In practical terms this means that for anyone TDF employs, whenever they travel for work - most notably attending conferences like FOSDEM or LibOCon - TDF needs to request the A1 confirmation. It contains the employee’s data, arrival and departure, the location of work and a few other details, e.g. the hotel address.
The A1 is a confirmation that has to be issued, it is not an approval. However, it usually takes a few days to get issued. For urgent trips, the confirmation of application is enough, even if the final document did not arrive yet.
In case of an audit, employees always need to carry a printed-out version of this confirmation. Otherwise fine could apply - issued not by the German authorities, but by the authorities of the country the employee travels to.
TDF handles the A1 confirmations via the payroll provider, but it requires some work upfront - collecting travel data, hotel and venue addresses, and checking the documents are accurate when they arrive. This is one of the reasons why we ask people to finalize their travel data in time.
Also, the confirmation is not cheap - our payroll provider charges us about 20 € per person net. So for seven people to go to FOSDEM, we pay 7 * 20 * 1,19 = 166,60 € just in A1 confirmations.
The A1 confirmation is applicable within Europe. For trips to other countries, like the US, similar mechanisms exist, but they differ per country and sometimes still require a manual process with snailmail and signed forms.
Those who repeatedly travel to foreign countries (not applicable for TDF, but e.g. train or truck drivers) can apply for a longer A1 confirmation to avoid a regular application.