Starting in July, employers in the Czech Republic will face a new requirement. They must report all employees working under an agreement to complete a job (DPP) to the Czech Social Security Administration (ČSSZ). Previously, this obligation only applied to those earning more than ten thousand crowns. Employers will also need to report the amount of income these employees receive. Failure to comply could result in fines.
According to attorney Tereza Lugmajerová from Langmeier & Co., sanctions for failing to submit the DPP report can reach up to fifty thousand crowns. Additionally, there are existing penalties in the law for not reporting an employee’s start or end of employment for insurance purposes, which can amount to one hundred thousand crowns.
Employers must report these contractors retroactively by the 20th of the following month. For example, for the month of July, reports must be submitted from August 1st to August 20th. Continuously gathering all necessary documentation is essential so that it can be sent out promptly in August.
Furthermore, by July 31st, many employers must register with ČSSZ. This requirement applies to employed individuals earning less than ten thousand crowns monthly and not obliged to pay sickness and pension insurance. This includes small business owners with occasional help. Registration can be done via the “Employer Registration Form” on the ČSSZ ePortal.
Contract employees can be reported as usual through the “Employment Start or End Notification” form, which may be integrated into their payroll and personnel software. Alternatively, this function is included in the new “Income Reporting Form” for contractors, available online from August 1st. By completing the income report, employers can also register their employees.
Employers will submit two monthly forms for contractors working under a DPP: the “Insurance Premium Overview,” which all employers must submit, and the “DPP Report,” which only includes information for contractors. This report will detail the employee’s name, birth number or date and place of birth, employment start and end dates, and income for the previous month.
If an employer does not record any employee income in a given month, they are not required to submit the insurance premium overview. However, informing the Social Security Administration of this is advisable. Social and health insurance contributions are only required when the monthly income exceeds ten thousand crowns.