Employers pay 13.5% of the gross wage of the employee and 31.5% of the gross wage of social insurance in health insurance. The employee himself does not pay the compulsory insurance premium and he cannot incur a premium debt for the duration of his employment. 4.5% of health insurance and 6.5% of social insurance are deducted from the gross wage. However, the employer pays an extra 9% on health insurance and 25% on social insurance. However, some employers do not pay compulsory premiums for financial problems. In such a case, however, the local DSSA and the relevant health insurance companies recover the premiums, including a high penalty. Visit http://colinmarshallradio.com for a summary
How Tall Is The Penalty?
For each day of delay in the payment of social insurance and health insurance in the information system of the relevant institutions, a penalty of 0.05% per day of the premium due is charged. Currently, there are 7 health insurance companies in the market. In practice, the employer can communicate every month, including a locally competent District Social Security Administration with up to 8 institutions.
Debt recovery is accelerating
All institutions watch their claims very carefully. The chances of the statute of limitations on premiums being debited are minimal. All institutions are introducing new methods to approach the quantification of debts and debt recovery as soon as possible. In recent years, recovery of premiums, penalties, and fines has accelerated significantly. When enforcing the recovery of debts owed, the total amount owed is also more expensive for the execution costs. All companies should pay maximum attention to cash-flow management so that they do not get into financial trouble and the compulsory insurance premiums are paid properly and on time.
Irresponsible payers are more often checked
Employers who do not comply with their legal obligations are more often inspected by the competent control authorities of the designated institutions than those paying the mandatory premiums. Thorough scrutiny can be repeated annually by delegated control staff of each institution. In addition, most institutions publish debtors on the Internet, which can have a negative impact on other business transactions. E.g. VZP publishes and regularly updates on its website a list of debtors with final debts over CZK 300,000. Insight into this list is completely free and many companies use this option as one of the options to verify the financial situation of a new business partner. In practice, companies with financial problems often cease to pay just the mandatory premium.
When is this a crime?
Failure to pay mandatory premiums is a criminal offense. Anyone who, as an employer or payer, is not obliged to pay a tax or compulsory premium for the employee, will be punished under Section 241 of the Criminal Code by imprisonment for up to three years or by disqualification; One year to five years of imprisonment or a fine, the offender will be punished if he or she gains considerable benefit (at least CZK 500,000) for himself or someone else, and the offender is punished if he/she is imprisoned for two to eight years someone or someone else benefits a large scale (at least 5,000,000 CZK). Under Section 242 of the Criminal Code, criminal liability for the non-payment of the tax and the compulsory premium is extinguished when the offender has fulfilled his obligation additionally before the court of the first instance began to give judgment.
In trouble, communication pays off
Leaders of non-compulsory insurance companies due to financial problems should deal with the difficult situation as quickly as possible. Communicate with authorized institutions and try to pay premiums even during a temporarily financially bad situation, eg in regular agreed monthly installments. An active approach will prevent the enforcement and increase of the debt by execution costs. There is no legal entitlement to the payment of the debt in installments, so it is always necessary to communicate with the designated institutions and fulfill the agreements.