Payroll
Most Common Payroll Accounting Mistakes in 2026
· 6 min read
An overview of mistakes that most frequently lead to additional tax and levy assessments and penalties in 2026: agreements to complete a job (DPP), the single monthly employer report (JMHZ), minimum wage, occupational medical checks, and statutory injury insurance.
Poorly Monitored Limits for Agreements to Complete a Job (DPP)
In 2026, participation in social and health insurance for a DPP (dohoda o provedení práce – agreement to complete a job) arises at a gross monthly income of CZK 12 000 and more, with income from all agreements with the same employer being combined. For an agreement on work activity (DPČ – dohoda o pracovní činnosti), the decisive threshold is CZK 2 499. The most common mistake is assessing each agreement separately and failing to observe the annual statutory limit of 300 hours per DPP.
Incorrect Employee Registration
Employees on an employment contract, whether full-time or part-time, must always be registered. For a DPP, the employee is reported electronically to Česká správa sociálního zabezpečení (ČSSZ – Czech Social Security Administration) via the Single Monthly Employer Report (JMHZ – jednotné měsíční hlášení zaměstnavatele), and registered with their health insurance company only after exceeding the decisive threshold of CZK 12 000.
Minimum Health Insurance for Concurrent Employment in 2026
If an employee works for multiple employers, each individual employer does not necessarily have to pay health insurance up to the minimum assessment base. What matters is that across all employments combined, the minimum assessment base is reached for that month, which in 2026 is CZK 22 400. Minimum health insurance corresponds to CZK 3 024 (13.5% of CZK 22 400).
Concurrent Employment with Two Employers
If an employee earns at least the minimum wage with their primary employer and has a lower income with a secondary employer, the secondary employer pays contributions only on actual earnings achieved. However, they must hold a confirmation from the primary employer stating that the minimum assessment base has already been met. If earnings from both employers are below the minimum wage, the incomes are combined for health insurance purposes. Employers must provide mutual proof of earnings to correctly determine whether the minimum assessment base has been met.
Unexcused Absence
If an employee has an unexcused absence for the entire month and earns no income, their assessment base is the minimum wage of CZK 22 400. The employer therefore pays health insurance of CZK 3 024, which it may subsequently recover from the employee. An exception applies when the employer proves that another employer has already paid contributions on at least the minimum assessment base for the same period. In such a case, no top-up contribution is required for the employment with the unexcused absence.
When the Minimum Assessment Base Does Not Apply
The obligation to top up contributions to the minimum does not apply to certain groups of employees, such as pensioners or other individuals listed under Section 3(8) of Act No. 592/1992 Coll. For these employees, health insurance is paid solely on actual earnings achieved.
What to Watch Out For
In cases of concurrent employment, employers must document income levels to each other. Confirmation of meeting the minimum assessment base is a vital document in the event of an audit by a health insurance company. Without this confirmation, an obligation to top up health insurance contributions to the statutory minimum may arise. FinTaxo tip: If you employ part-time staff or workers with multiple jobs, we recommend regularly verifying that you hold all necessary confirmations. This will help you avoid back payments of health insurance during an audit.
Incorrect Taxation of Work Agreements
Remuneration from a DPP up to the statutory limit is subject to withholding tax (srážková daň), and above the limit to advance income tax (zálohová daň). Beware of concurrent DPPs with an employment contract or another agreement with the same employer — the tax bases are combined and advance income tax applies, with tax relief available if the Taxpayer's Declaration (Prohlášení poplatníka) is signed. From 2027, all income from DPPs will be taxed exclusively via advance income tax, for which it is advisable to prepare now.
Underestimated Minimum and Guaranteed Wage
For 2026, the minimum wage is CZK 22 400 per month and CZK 134.40 per hour. Mistakes typically occur with part-time contracts, where the minimum wage is reduced proportionally, and with work agreements, where the hourly rate must not fall below the statutory minimum even after rounding.
Omitted Initial and Periodic Occupational Medical Examinations
For employment contracts, an initial medical check is always mandatory. For a DPP, it is not required for non-hazardous work in Categories 1 and 2, but it is mandatory for Category 2 with occupational risks, Categories 3 and 4, work requiring special medical fitness (night work, company vehicle/referent drivers, forklift operators), and always for minors. Periodic medical checks are not required for non-hazardous work, but must be repeated every two years for hazardous work and annually for the highest-risk categories.
Forgotten Statutory Employer Injury Insurance
Statutory employer liability insurance for workplace injuries and occupational diseases is paid quarterly and is mandatory even if you only employ staff on work agreements (DPP/DPČ). Missing payments are recovered retrospectively, including late-payment interest and penalties.
Disorder in Payroll Records and Deadlines
Payroll sheets, tracking of hours worked under agreements, taxable income certificates, and document archiving are among the most frequently cited shortcomings. Contributions and reports are due by the 20th day of the following month; recurring delays signal to auditors that internal payroll systems are flawed.
Errors in Communication with the ČSSZ Concerning Sickness Benefits
Sample forms downloaded from the ČSSZ website are intended solely for the employer's internal use. They must not be sent to OSSZ (Okresní správa sociálního zabezpečení – District Social Security Administration), not even as an attachment to the Employer's Notification of Employee Benefit Application form. For carer's allowance (ošetřovné), provide the identifier (decision number) and details of the person being cared for, not the employee. Furthermore, unlike eNeschopenka (electronic sick notes), carer's allowance does not send automated notifications — it is necessary to first submit an enquiry about the specific case via your payroll software or the ČSSZ ePortal.
Most Common Mistakes in the NEMPRI25 Form
Audits and reviews most frequently reveal the following shortcomings: missing or incorrect identifier, incorrectly stated planned shifts, erroneously indicating that the employee worked during the care period, and incorrect data regarding the common household or childcare. Always use the latest version of the NEMPRI25 form. When closing a case without a prior submission, mark both Inception (Vznik) and Termination (Ukončení) simultaneously, and submit corrections as corrective filings rather than new standalone forms.
Payout of Sickness Benefits When Wages Are Paid in Cash
Sickness insurance benefits cannot be paid out in cash. The employee must submit an Application to Change Benefit Payment Method (Žádost o změnu způsobu výplaty dávky) and select another payment method, typically a bank account.
How to Quickly Check for Errors
You can identify most of the points mentioned above within a few minutes using our free HR mini-audit. It guides you through contract types, registrations, agreement limits, medical checks, and insurance, highlighting risks and opportunities for payroll cost optimisation at the end.
Author: FinTaxo expert team
Operated by: Zaklipso s.r.o.
Czech original: read this article in Czech
This article is general information and does not replace individual tax, accounting or legal advice. Czech legislation changes frequently — verify the current wording or discuss your situation with us before acting on it.
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