During 2024, significant changes have been made to work performance agreements. In addition to shift scheduling, holiday entitlement and weekend and public holiday allowances, there is an obligation to report all agreement workers and to register the employer with the CSSA when employing workers under a performance work agreement (PWA). Here is a clear guide on how to do this.
1. When do I sign up an employee?
The first step is to meet the application deadline. All employees on a temporary employment contract who have not yet been registered must be registered with the Czech Social Security Administration by 20 August 2024 at the latest. If you employ an employee after this date, you must always register him/her by the start date at the latest.
From 1 July 2024, you must regularly report all employee income to the DPP by the 20th of the following month. The first report for July 2024 must be submitted by 20 August 2024.
2. Where do I report the contractor?
It is necessary to register the contractor with the Social Security Agency. You have two options for this:
- Notice of Employment (Termination of Employment) Form - This form is usually available in many HR or payroll software. Simply fill it out electronically and send it to the Social Security Administration.
- eSubmission of the RDRP - As of 1 August 2024, a new e-form is available on the CSSA website that allows employees to easily log in when submitting their income statement. Simply select the "Income Statement DPP Entry" option and the form will automatically log the income statement at the time you file your July report.
3. How do I report the income of contract workers?
Income reporting is carried out using the form e-Submission of the GSTPform, which is used to record all income accounted for. This applies to both employees who are subject to social insurance and those whose income is not subject to social insurance. It is important to declare all income, including income on which social insurance is not deducted.
Registration of new employers
If you have not yet been registered with the CSSA as an employer because you have only employed uninsured employees on a permanent basis, you are obliged to register by 31 July 2024 at the latest.
Registration can be done via the electronic form Registration to the Employers' Register. In the application form it is necessary to indicate:
- Identification and contact details,
- Whether you are a legal entity, an individual or a sole trader,
- Bank connection,
- The date you were established as an employer.
Your employer's start date is determined by the date your first employee started, even if he or she was not insured. For employers who only employ uninsured employees on a FTC, the employer start date is based on when the first employee started on the FTC and the agreement continues after 1 July 2024.
Let's give an example for clarity. Your company was established in 2020. From 2021 you employ only one employee on a FTE. When you register, you indicate both the date of incorporation of the employer and the date of the employee's commencement of employment as 2021. You do not need to file zero-rated premium statements for this period retrospectively - it is a registration issue only.
If you are unclear or need more detailed information, we recommend visiting the CSSA website, where you will find clear instructions and answers to frequently asked questions regarding the registration of contract workers. A detailed description of the employer's obligations can also be found on the CSSA website. Other changes, such as the possibility of overlapping agreements with parental leave or social insurance coverage for contract workers, are planned to take effect in the new year.
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