Alexio.cz Employee Registration, Payroll and Tax Services
Our services consist of, but are not limited to:
- Payroll Services for a (foreign-based) company as employer in Czech Republic
- Registration at Labor office, tax office, social security and health insurance
- Applying for a Work Permit vs Registering as self-employed
- Contract Negotiation: Employee vs Trade License
- Filing Income Taxes, Tax Optimization, claiming Tax Benefits
Before requesting our services, we highly recommend reading first
Payroll Services for (Foreign) CompaniesAny company that will have employees in Czech Republic will need monthly payroll administration and register each employee at labor office / tax / social / health (see below). Alexio takes care of this entire process for the company (even if it is a foreign company, not based in Czech Republic, or even without any office here), so this is completely outsources and no worry of the company owner.
Registration at Labor office, Tax Office, Social office and Health InsuranceAlexio registers (foreign) employees at the labor office, tax office, social office and health insurance, so that the employing company doesn't have to do this. Unlike other countries, the process is needlessly complex, since there is no central point of registration. even for Czech employees, and the penalties for wrong / incomplete employee registrations quite high.
Applying for a Work Permit vs Registering as self-employedA 3rd-Country National without a Residence Permit needs to have a Work Permit and a Visa for Employment Purposes in order to get a job. Only if the company already has provided an employment contract, it can apply for a Work Permit and help the employee with all the paperwork on his side. This for example includes having all diplomas and certificates officially translated.
The entire process at the Ministry and Labor Office can take several months, and after receiving the Work Permit, it is possible to apply for / renew a Visa with as purpose of stay employment. If the Applicant is obligated to apply in his home country (usually the case for non-Western 3rd Countries), the Visa Application process may take another 3-4 months (!)
Important: For 3rd-Country Nationals, we recommend to register as self-employed instead: much easier, chaeper and faster than a work permit. It will save a at least 3 months in the application process
Contract Negotiation: Employee vs Trade License (Živnostenský List)Many times there is the choice between a job as employee or working as freelancer on a trade license.
Alexio can take look at the offer, terms and conditions and calculate what is most beneficial for the employer and the employee, and -if applicable - register a živnostenský list or set up an SRO
Filing an Employee Income Tax ReturnAn employee is not obligated to file a tax return, if his only source of income is from employment. Very often (90%) employers do not file a tax return for the employee at all, so the employee misses out on tax benefits, which is for a family with 2 kids and a non-working spouse roughly 70.000 CZK / year (!).
Also, if an employee worked only part of the year, or has multiple sources of income, or income from outside Czech Republic (there is an obligation for each tax resident to declare the global income in CZ) a personal income tax return must be filed, see also