MINIMUM HEALTH LEVIES – STATUTORY BODIES

MINIMUM HEALTH BENEFITS – STAFF Around the new year, all 5 of us were on holiday for the first time with our little family. The perfect term. The perfect space to rack up some honest “family hours”. However, a law was passed on 12/22 and published on 12/30 that introduces so-called minimum health levies for statutory and low income employees. Legal notice period (i.e. space to familiarise oneself with the law) – 2 days You will read variously what the amendment introduces in general terms. But what are the changes and possibilities in practice? In 2022, a managing director with a remuneration of EUR 10/month had various advantages:
✔️he did not have to pay the minimum ZP of EUR 79/month (EUR 85 in 2023);
✔️ it helped him/her to get the maximum maternity (both men and women) or maternity (women);
✔️ the tax office did not address this (even though it goes against the spirit of transfer pricing) and cannot address it now;
✔️ under the previous government, he would also be entitled to the minimum pension (min. 334 EUR/month); In 2023 he will have to pay an extra 31,82 EUR (because of the minimum levies). And so the questions arise which is more advantageous?
✔️ He can consider increasing his remuneration to €234, thus saving (with a regular remuneration) another approx. €40/year;
✔️ He can consider increasing his remuneration to EUR 400, thus paying (on a regular remuneration) an extra approx. EUR 200/year, but he will be entitled (subject to other conditions) to a minimum pension, for example;
✔️ He can consider switching to a salaried job with a salary of EUR 329, thus saving an additional approx. EUR 36/year; For entrepreneurs, these are basically marginal figures and irrelevant information. But in the broader context (including the amendment) it takes on a different dimension. For example, with my three children alone, the tax bonus also amounts to EUR 5 000/year. If we take into account other contexts (impact on pension, credit rating, tax-efficient withdrawal of money from the company (e.g. one-off in January), maximum maternity allowance,…), there is a beautiful space for creative micro tax-tax advice. But of course, that would also wait until February. The problem is that such a substantively insignificant change produces (not only for us) a lot of administrative problems (understanding the law, training colleagues, setting up software, communicating to clients, answering client questions, setting up solid procedural and communication procedures) that need to be resolved as early as possible in January. Of course, these are all solvable things in the medium term. But that is exactly what the legislative deadline is for. So that I can be at ease on holiday. And by the way, we are looking for an accounting colleague to join our accounting capital team at Highgate Law & Tax Highgate Accounting led by Milan Gedeon. Can also be a complete beginner to capital markets.
✔️Salary from 1,250 to 2,000 EUR/month + bonuses + signing bonus equal to one month’s salary;
✔️Possible home office;
✔️Office in Nivy Tower (24th floor); We would be very happy to see you with us. Please feel free to contact my colleague Erika Klcova