The Year Is Over

Annual Payroll Agenda is coming

Martin Svoboda

It’s here. The year is over and that means a very challenging period that annual payroll agenda represents for payroll accountants. The annual payroll agenda isn’t only annual tax reconciliation. It is also the compulsory share of employees with disabilities statement, sending of pension insurance records, annual tax summary statements, and issuing of payroll sheets. Let’s take a look at the compulsory share of employees, and pension insurance records in this article.

Compulsory share of employees with disabilities statement

Czech legislation commands to employers, who employ more than 25 employees to employ at least 4% of their employees, people with disabilities. Due to the fact that most of the employers aren’t capable of meeting this goal, Czech legislation allows fulfilling this duty using two other ways. The first way is to buy products or services from companies that employ more than 50% of disabled people out of the total number of employees (replacement rule). If it isn’t possible to fulfill this duty using the replacement rule, the employer is obliged to make a payment to the state budget. The due date for sending a statement and making a payment is February 15th, 2020. Although this may seem as simple, the opposite is true. The procedure of calculation of employees with disabilities and the calculation rule of replacements itself are very complicated, hence wider knowledge of a payroll accountant is crucial.

Pension insurance records

Employers are obliged to issue pension insurance records for every employee, who has the Czech state pension insurance. Based on these pension insurance records, the amount of retirement pension will be calculated. Pension insurance records are usually issued after the termination of employment. But if the employment lasts, the employer has to issue pension insurance records for the preceding year; the pension insurance records have to be delivered to the Czech Social Security Office and to an employee. Pension insurance records are issued after the closure of payroll sheets, but not later than April 30th, 2020. Pension insurance records contain employee’s personal data. Czech birth number (or insured person registration number) is truly outstanding. It also contains a type of employment and last year’s assessment base. It is essential to mark which months an employee was (not) insured in and state the number of excluded days – these days increase the future value of retirement pension.


Martin Svoboda
Payroll Development Specialist
Contract Administration