PAYROLL SERVICES
When payroll is mentioned, most people immediately think of processing employee salaries. But it doesn’t stop there. Payroll accounting encompasses a broad spectrum of responsibilities that begin the moment the first employee is hired by the company.
All the administrative activities related to this are also reflected in the company’s HR agenda, and the results are then reported to the relevant government bodies. Everything starts with the signing of an employment contract, a work performance agreement (DPP), or a work activity agreement (DPČ) between the employee and the employer. This is followed by the outcomes of medical examinations, safety training (BOZP) and fire protection (PO) training, possibly an agreement on material liability, provision of meal vouchers, wage deductions, etc.
Large companies (over 200 employees) usually employ their own payroll accountant, responsible for the entire payroll agenda and often closely cooperating with the HR department. This particularly involves gathering the data from which wages are calculated or which influence their final amount, such as information on worked hours, doctor visits and sick leave, vacation time, and details for granting bonuses or other variable pay components. From the calculated net salary, deductions such as meal vouchers, personal phone calls, child support, or garnishments, among others, are then made.
When an employee leaves the company, the payroll accountant must issue a final settlement slip, process any unused vacation pay, issue an Employer’s Certificate for the purposes of assessing eligibility for unemployment benefits, prepare a payslip, or possibly notify the court or bailiff that this particular employee has ceased working for the company. The end of the year is the busiest time, as it involves issuing Certificates of Taxable Income from Employment, ensuring the pink Taxpayer’s Declaration is signed for the next calendar year, filling out and sending pension insurance record sheets (ELDP), ensuring all necessary documents are archived, etc. As you can see, payroll accounting is not just about paying wages and requires a lot of knowledge and experience to manage.
WHEN TO OUTSOURCE PAYROLL ACCOUNTING
As a small business owner, you can manage payroll accounting by outsourcing it to an accounting agency. This eliminates the hassle of paperwork and, most importantly, saves a lot of time. Finding a qualified, experienced, and, above all, responsible accountant is not easy today, and if you only have a few employees, it doesn’t even make financial sense. We are happy to take care of everything for you and ensure you a complete agenda with maximum comfort. So, when does it pay to handle payroll accounting externally? Typically, when
- You manage payroll internally and are looking for a cheaper and more efficient solution.
- Another agency handles your payroll accounting, but you are dissatisfied. You seek better services at a favorable price, flexible communication, or higher expertise.
- Your current payroll accountant is retiring or going on maternity leave, and you are looking for a quality replacement.
- You are starting a new company and want to focus fully on your business. You don’t want to be bogged down with paperwork, but hiring a payroll accountant doesn’t make financial sense.
Payroll accounting covers a very broad area. It can’t be managed without in-depth knowledge of labor law, social and health insurance contributions, taxes, etc. Moreover, it requires continuous education and monitoring of current legislation and any changes. Our expert team guarantees you professional service, individual approach, and flexible communication at unbeatable prices.
PROFESSIONAL PAYROLL ACCOUNTING WITHOUT THE WORRY
As outlined above, payroll accounting involves many tasks that require specialized knowledge and practical experience. Not least, it requires the appropriate technical equipment and quality programs for processing the relevant data. All this costs time and money, which you can save by turning to an external partner. We offer you complete consultancy and assistance in the following areas
- Employee wage processing.
- Social and health insurance statement preparation.
- Maintenance of payroll and pension insurance records
- Annual employee tax settlements.
- Support in preparing labor-law documentation.
- Assistance in setting up employee benefits and creating reward schemes.
- Employee registration and deregistration.
Maintaining confidentiality and protecting your company and personal data is a matter of course for us. We pride ourselves on professionalism, an individual approach to each client, and flexible communication. We adhere to deadlines, and you can always rely on us. We are ready to answer all your questions and meet your needs, even for non-standard requests. Our expert team continuously improves their qualifications, monitors legislative changes, and keeps up with industry news. We’ll take care of all the administration for you and ensure your payroll accounting is in perfect order. You can spend the time saved on developing your business.
ACCOUNTING AND VAT PAYMENT
You become a mandatory VAT payer if your turnover exceeds 1 million CZK (from 2023, the threshold is 2 million CZK) over 12 or fewer consecutive calendar months. In that case, you need to register within 15 days after the end of the month in which you exceeded the set turnover and start fulfilling the following VAT payer obligations
- Apply VAT to all your sales, i.e., taxable supplies made.
- Keep records and retain all tax documents for 10 years.
- Submit tax returns and control reports by the 25th day after the end of the tax period.
- Verify your suppliers in the VAT payer registry.
- Issue tax documents and remit VAT also for received advances.
- And you can claim the so-called right to excessive deduction for your purchases.
If your turnover for the previous calendar year exceeded 25 million CZK, you are already legally required to keep accounting records.
MANAGING YOUR ACCOUNTING AND VAT PAYMENTS
At first glance, managing your own accounting might seem like a way to save money. On the other hand, it requires a very good understanding of accounting principles and, most importantly, current legislation. Neglecting important information or submitting documents late exposes you to the risk of penalties from regulatory bodies, such as the Financial Office. Not to mention the issue of equipment, i.e., acquiring quality accounting software, which you have to pay for and learn to use effectively.
By collaborating with an external partner on an outsourcing basis, these worries disappear, and you save a lot of time. If you’re an entrepreneur or a small manufacturing or trading company, our team of experienced accountants will take care of comprehensive accounting management with maximum convenience for you. We offer
- Main ledger management.
- Processing of accounting documents, their digitization, and archiving.
- Bank, inventory, and asset record-keeping.
- Creation of accounting statements and statistical reports.
- Preparation of control reports.
- Processing of annual financial statements.
- Preparation of control summary reports and VAT returns.
We pride ourselves on a professional and meticulous approach. Accounting management is a breeze for us. With us, you’ll always have your accountant at hand.
