At the end of last year, we told you about changes effective from January 2016. Now that the time has come to produce financial statements and close payroll accounts, we would like to inform you about all payroll-related closing operations. All clients of RSM CZ Payroll receive these services automatically. If you are not our client and do not receive such services from your current provider, you might consider a transfer to an outsourcing company.
Overview of closing transactions:
1. Processing PAYE and withholding tax statements
- Companies entered in the Commercial Register file the statements electronically through their data boxes or by the Financial Administration’s e-tax portal .
The deadline is 20 March 2016
- Foreign companies with employees in the Czech Republic and not entered in the Commercial Register file the statements in writing with the competent tax authority.
The deadline is 29 February 2016
- Withholding tax statements in respect of personal income tax.
The deadline for filing electronically and in hard copy is 31 March 2016
2. Processing annual income tax statements for individual employees
- Employees may request their employer to prepare an annual income tax statement for 2015 by 15 February 2016 by selecting this option in the taxpayer’s statement (Prohlášení poplatníka).
- Employers may also be contacted by their former employees who terminated their employment during 2015 with the request for the annual income tax statement. Employees are entitled to do so if you are their last employer.
- Employees exceeding the maximum assessment basis for social security may not request an annual income tax statement; on the contrary, they are required to file a tax return with the tax authority competent for the employee’s place of residence.
3. Processing notifications of compliance with the mandatory rate of employees with disabilities
- These notifications are only filed by employers meeting the requirement that the adjusted average number of employees for 2015 equalled or was greater than 25.
- Employees can reduce their taxes by purchasing products or services from, or awarding contracts to, companies that employ employees with disabilities (previously sheltered workshops).
- The notifications must be sent to the Job Centre by 15 February 2016. The same deadline applies to any tax payments.
4. Processing of pension insurance registration documents
- Original documents must be sent by the employer to the competent Social Security Administration by 30 April 2016.
Please do not hesitate to contact us if you have any questions. We would be happy to advise you.