Records of agreements on work performance - changes from 1.7.2024

All employers who have employees working on the basis of a DPP will have a notification obligation. This includes an employer who is not registered in the register of employers, as up to now they have only employed uninsured employees on a DPP. Such an employer is obliged to register in the Employers' Register by 31 July 2024 at the latest. On the basis of its application, it will be assigned a variable symbol under which it will be entered in the employers' register of the CSSA. 

Employers are therefore obliged to:

1.       Notify all employees of the start of employment on the DPP - the employer is obliged to notify the start/termination of employment of all employees on the DPP electronically by the 20th day of the following month.    

2.       Report a list of all employees on the DPP, including the amount of their income, on the prescribed form "DPP Statement". 

Notification obligation

• The start of employment must be reported no later than the July 2024 Statement.
• The employer is also required to register employees who started before 1 July 2024 by 20 August 2024 at the latest, if the DPP continues in July 2024 (i.e. with the first submission of the DPP Statement).
• For July 2024, the Statement must be filed even if the employee did not start work until July 31 and no income was earned until July.
• The statement can be sent after or at the same time as the employee's notice of employment. The statement will be returned to the employer if the employee is not on the register of insured persons because he or she has not been notified of starting work. 

DPP Statement – electronic DPP notification

• It will be submitted in electronic form for each employee working on the basis of a DPP to the relevant CSSA, no later than the 20th day of the calendar month following the month for which it is submitted.
• For the first time, the DPP Statement will be submitted for the month of July 2024 with a submission deadline of 20 August 2024.
• The obligation to submit monthly DPP Statements continues until the employee's employment on the DPP is terminated.
• A new electronic submission of the DPP Statement will be available from 1 August 2024.
• The statement will be used to report the start/end of employee´s employment on the DPP and also to report the amount of income for the last month.
• The statement will include all income – i.e. income below CZK 10,000 or even zero income. 

Required data on the DPP Statement:

• employer details - name, registration number, variable symbol
• employee details - name and surname, date of birth, birth number or insurance registration number, place of birth, sex, maiden name, health insurance code, nationality, date of start and termination of employment
• the amount of income accounted for 

The conditions for participation in sickness insurance with the DPP will remain unchanged until 31.12.2024. Until the end of the year, the threshold for participation in sickness insurance and payment of insurance premiums is still more than CZK 10,000 per month. If the total of the employee's earnings in a calendar month from all DPPS with the same employer exceeds CZK 10,000, the employee will participate in sickness insurance for that month and social security contributions will be paid on that income. 

As of 1 January 2025, DPP will only be in the so-called notified agreement regime. This will only be applicable to the DPP of one employer, namely the employer who "books" the employee first. The decisive amount for participation in the insurance will be 25% of the average wage determined in accordance with Section 23b(4) of Act No. 589/1992, rounded down to the nearest five hundred crowns. The amount of the applicable amount is announced annually by the MPSV in the Collection of Laws. 

We will bring you more information in the Newsletter later this year.

Labour Office, bailiffs and insolvency practitioners in connection with changes to the DPP

Since people who are registered with the Labour Office as job seekers and debtors in foreclosures also commonly work on a DPP, the new registration of all DPPs with the ČSSZ will also provide an overview of their income to bailiffs, insolvency administrators and the Labour Office itself. Employers will therefore have more administrative work to do as they will have to provide cooperation to these institutions upon request.

Authors:

Blanka Knedlová, Payroll Accountant, HR & Payroll Services
Martina Farářová, Manager, HR & Payroll Services