In the first instance, we pay social security contributions so that we can reach the state pension in the future. Who is employed is without worries, the employer is paid by him. Self-employed persons and all self-employed persons must take care of the calculation and payment of social security themselves.

What needs to be done by Kadoron, how the fees for self-employed persons (OSV) are calculated and who does not have to pay them, explains tax consultant Lenka Sthrov from Mazars.

Who must file a district administration of social security overview of income and expenses for 2016?
Obligation to submit a Statement of Income and Expenses (Statement) salary for all persons self-employed, regardless of whether they performed the main or secondary activity. All OSVs must submit a report, regardless of whether they are obliged to file a tax return. This means that even those who only performed one self-employed activity in a year and have a profit of thousands of crowns must complete and submit the Report.

How long does it take to submit the completed form?
As a rule, this year, all OSVs submit their overview by May 2, 2017. By August 1, they will have those self-employed persons, for whom the tax is processed by the advisor. The condition for a long period of time is that this fact, that its tax advisor, was documented by the district administration of social security by May 2, 2017. If the OSV is not obliged to file a tax return, the overview can be submitted by July 31, 2017.

What if someone doesn’t submit a preview?
If the overview does not support you or at all, the Czech Social Security Administration may impose a fine of up to 20 thousand crowns, in case of repeated non-fulfillment of obligations and 100 thousand crowns.

How to calculate the social security of OSV and from what income?
The rate of social security from self-employment is 29.2% of the collection base, which is half of the tax base. It is not possible to deduct the item deductible from the depository, as is the case with personal income tax. The payment of social security is only subject to income from self-employment. Social income is not paid on capital income or income.

The calculation of social insurance varies differently depending on whether the main or secondary self-employment was performed. For the whole of 2016, a social connection is calculated in Pehled and an advance payment is made during the year from the calculation.

How much do you pay in levies for those who perform mainly independent self-employed activities?
When performing the main self-employed activity, at least a minimum social insurance must always be paid. In 2016, it was 1,972 crowns msn. A person performing mainly independent self-employed activity throughout 2016 has to pay CZK 23,660 in social security, even if he has achieved, for example, a profit of only 50,000 crowns.

If, on the other hand, self-employed people have very high incomes, it is determined how much they have to pay for social security?
Yes, the maximum exchange deposit is also set for the payment of social security contributions, in 2016 in the amount of 1,296,288 crowns. In practice, this means that if the base is moved above this limit, it is not socially applicable.

If an entrepreneur in Pehled asks about the arrears on social insurance, how long does he have to pay it?
The sworn arrears must be paid within 8 days of the delivery of the Review, this year no later than May 10.

What about paying for a new MSN deposit for 2017?
OSVs are obliged to pay a new currency deposit for the first time for the city, in which they submit it to the district administration of social security.

If the self-employed activity was carried out throughout 2016, the new monthly deposit for social insurance and one twelfth of the calculated social insurance for 2016. When performing the main self-employed activity, the lowest monthly deposit for 2017 is set at CZK 2,061.

Who does not have to pay social security contributions?
Social insurance does not have to be paid from a separate independent activity, if the income is based on expenses for the entire calendar year 2016 in the amount of 64,813 crowns and less. In the case that the secondary self-employed activity was carried out by only a few months during 2016, then this limit is reduced proportionally, by CZK 5,402 for each town in which the secondary self-employment is not carried out.

Who’s that? Who meets the condition for secondary activity and is it necessary to prove it?
In practice, the most frequently employed self-employed employees, old-age and disabled pensioners, parents on parental leave or students meet the condition of self-employment. In some cases, the performance of an independent self-employment must be documented, such as a certificate of study.

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