First Employee: Registration Obligations
Hiring your first employee? As an OSVČ, you're stepping into a completely new role — you're becoming an employer. And that comes with a whole range of obligations you need to fulfil before your new colleague even walks through the door. Registration with the Czech Social Security Administration, enrolment with the health insurance fund, notification to the tax authority, ensuring workplace safety, and from April 2026, the new Unified Monthly Employer Report (JMHZ). This guide will walk you through the entire process step by step, so nothing slips through the cracks and you avoid any penalties.
Why hiring your first employee is such a significant step
As long as you run your business as an OSVČ without employees, your administrative obligations are limited to bookkeeping, advance insurance payments, and an annual tax return with summary reports. The moment you take on your first employee, everything changes dramatically:
- You become a payer of insurance contributions for your employee (both social and health insurance).
- You must withhold and remit income tax advances on employment income.
- You take on responsibility for occupational health and safety (OHS).
- You must maintain payroll records and submit regular reports.
- From April 2026, you will submit the Unified Monthly Employer Report (JMHZ).
Key deadlines for employers
Most registration obligations have a deadline of 8 calendar days from the employee's start date. With the tax authority, the deadline is 8 days from the moment the obligation to withhold tax arises. Missing these deadlines is an offence that can result in a fine. From 1 April 2026, there is also a requirement to register employees before they begin work under the new JMHZ system.
Step 1: Registration with the Czech Social Security Administration (ČSSZ)
Registering with the ČSSZ is the first and most important step. As a new employer, you must enrol in the employer register at your locally competent District Social Security Administration (OSSZ).
What you need to do
📋Registering with the OSSZ as an employer
Registering the employee
You must register each employee with the OSSZ using the Employment Commencement Notification (ONZ) form. The form contains details about the employee, the type of employment relationship, and the start date.
New obligation from 1 April 2026
From 1 April 2026, the Unified Monthly Employer Report (JMHZ) system is being introduced. All employees must now be registered in the employee records no later than the moment they begin work. If the partial registration option is chosen, the remaining details must be submitted within 8 days of the start date. Existing employers must complete supplementary registration by 15 April 2026.
What is the Unified Monthly Report (JMHZ)?
The JMHZ is a completely new system that from 2026 replaces the previously fragmented reporting to various institutions with a single consolidated electronic submission. The legislation came into force on 1 January 2026, with full live operation starting 1 April 2026.
📊JMHZ — key dates
Social insurance contributions for employees
As an employer, you pay social security contributions on behalf of your employees at a total rate of 24.8% of the employee's gross salary (of which 6.5% is deducted from the employee, and 24.8% is the total contribution including both the employer's and employee's share). Contributions are due between the 1st and 20th of the following calendar month.
Social insurance — 2026 rates
Employer rate: 24.8% of gross salary
Breakdown:
- Pension insurance: 21.5%
- Sickness insurance: 2.1%
- State employment policy contribution: 1.2%
Employee rate (deducted from salary): 7.1%
Total deduction from payroll: 31.9%
Contributions are due between the 1st and 20th of the following month.
Step 2: Registration with the employee's health insurance fund
As an employer, you must register with every health insurance fund where your employees are insured. If you have one employee, you register with one fund. If you have two employees insured with different funds, you register with both.
Registration process
📋Registering with the health insurance fund as an employer
Health insurance contributions
Health insurance — 2026 rates
Total rate: 13.5% of gross salary
Breakdown:
- Employer: 9%
- Employee (deducted from salary): 4.5%
Minimum assessment base for employee: minimum wage (18,900 CZK in 2026)
If the employee's gross salary is below the minimum wage, the employee is responsible for making up the shortfall.
Contributions are due between the 1st and 20th of the following month.
Watch out for health insurance fund changes
An employee may change their health insurance fund on 1 January or 1 July each year. They are required to notify you of the change within 8 days. You must then deregister the employee from their previous fund and register them with the new one — and if you have no other employees insured with the new fund, you'll also need to register yourself as an employer there.
Step 3: Registration with the tax authority
By taking on an employee, you become a payer of income tax on employment income. You must register with your locally competent tax authority.
What to register
📋Employer tax registration
Withholding tax vs. advance tax
Advance tax (15% / 23%) applies to employees who have signed the Taxpayer Declaration (the so-called pink form). The employee can claim tax credits.
Withholding tax (15%) applies to income from small-scope work agreements up to 10,000 CZK per month where the employee has not signed a Taxpayer Declaration. The tax is final and the income is not included in the employee's tax return.
Ongoing obligations as an employment income tax payer
Once registered, you have the following ongoing obligations as a payer:
| Obligation | Frequency | Deadline | |-----------|-----------|-------| | Remittance of income tax advance | Monthly | By the 20th of the following month | | Remittance of withholding tax | Monthly | By the end of the following month | | Annual employment income tax settlement | Annually | By 20 March (for the previous year) | | Annual withholding tax settlement | Annually | By 2 April (for the previous year) | | Annual tax reconciliation for employees | Annually | By 15 March (on employee request) |
Step 4: Employment contract and other documents
Before the employee starts, you must have the key documents prepared and signed.
Required documents
📋Documents at the time of employee onboarding
Mandatory elements of an employment contract
Under Section 34 of the Labour Code (Act No. 262/2006 Coll.), an employment contract must contain at minimum:
- Type of work — what the employee will be doing.
- Place of work — where they will be working.
- Start date — when the employment relationship begins.
Probationary period
A probationary period must be agreed in writing and no later than on the first day of work. The maximum length is 3 months (6 months for managerial employees). The probationary period may not exceed half of the agreed duration of a fixed-term employment contract.
Step 5: Occupational health and safety (OHS)
Ensuring OHS compliance is a legal obligation for every employer from the moment they take on their first employee. The costs of OHS measures are always borne by the employer — they cannot be passed on to employees.
Core OHS obligations
📋What you must ensure in the area of OHS
Who can conduct OHS training?
OHS training may be conducted by the employer themselves, provided they have the necessary knowledge. Employers with more than 25 employees must have risk prevention tasks handled by a qualified person (an OHS specialist). An OSVČ with one or a few employees may therefore conduct training themselves, as long as they are familiar with the relevant regulations for the work being carried out.
Occupational health services
From your first employee onward, you must have a contract in place with an occupational health service provider. Before starting work, the employee must undergo a pre-employment medical examination and be declared medically fit. The cost of the examination is borne by the employer.
📊Types of employee medical examinations
Step 6: Statutory employer liability insurance
Every employer who employs at least one employee is legally required to hold statutory employer liability insurance covering damage arising from workplace accidents or occupational diseases.
Statutory insurance is mandatory
This insurance arises automatically by law the moment you take on your first employee. You do not need to sign a separate contract — the insurance comes into existence directly by operation of law. You pay the premium to the relevant insurer (Kooperativa pojišťovna or Česká pojišťovna — depending on when the insurance obligation arose). The rate varies according to the employer's predominant activity (from 2.8 per mille to 50.4 per mille of total gross wages paid).
Step 7: Payroll administration — your monthly obligations
Once you have an employee, payroll administration becomes a monthly routine. If you have no experience calculating wages, we strongly recommend using payroll software or working with an accounting or payroll firm.
Monthly employer obligations
| Obligation | Deadline | To whom | |-----------|--------|------| | Calculate net salary and issue payslips | By the pay date | Employee | | Pay salary | As per contract (no later than the following month) | Employee | | Remit social security contributions | By the 20th of the following month | OSSZ | | Remit health insurance contributions | By the 20th of the following month | Health insurance fund | | Remit income tax advance | By the 20th of the following month | Tax authority | | Submit health insurance contribution payment report | By the 20th of the following month | Health insurance fund | | Submit JMHZ report (from April 2026) | By the 20th of the following month | ČSSZ (centrally) |
Example: Cost of an employee on a gross salary of 30,000 CZK
Employee gross salary: 30,000 CZK
Employer contributions (on top of gross salary):
- Social insurance (24.8%): 7,440 CZK
- Health insurance (9%): 2,700 CZK
- Total employer contributions: 10,140 CZK
Total employer cost per employee: 40,140 CZK
Deductions from the employee's salary:
- Social insurance (7.1%): 2,130 CZK
- Health insurance (4.5%): 1,350 CZK
- Income tax advance (15% after credits): approx. 1,808 CZK (with basic personal tax credit)
- Employee net salary: approx. 24,712 CZK
Complete checklist: hiring your first employee
To make sure nothing gets missed, here is a comprehensive overview of all the steps:
📋Checklist for hiring your first employee
Frequently asked questions (FAQ)
Do I need to register as an employer even if I only hire someone on a small-scope work agreement (DPP)?
Yes. Employees on a small-scope work agreement are still employees under the Labour Code. You must register with the OSSZ, the health insurance fund, and the tax authority. For a DPP up to 10,000 CZK per month, no social or health insurance contributions are due, but the obligation to register as an employer still applies.
How much does statutory employer liability insurance cost?
The premium depends on the employer's predominant activity and the total gross wages paid. The rate ranges from 2.8 per mille (office work) to 50.4 per mille (mining, construction). For typical office-based work with one employee on a gross salary of 30,000 CZK, the premium is approximately 84 CZK per month.
Can I handle payroll myself, or do I need an accountant?
The law does not require you to entrust payroll administration to a professional. You can manage it yourself if you have sufficient knowledge. However, given the complexity of payroll regulations, the frequency of legislative changes, and the potential penalties for errors, most small employers use the services of an external payroll accountant or payroll software.
What is the JMHZ and how does it affect me?
The Unified Monthly Employer Report (JMHZ) is a new electronic reporting system that from April 2026 replaces the previously separate reports submitted to the ČSSZ, health insurance funds, and other institutions. It is submitted electronically as a single report by the 20th of the following month. All employers are required to use this system.
Do I need a dedicated OHS specialist for just one employee?
No. An employer with no more than 25 employees may handle risk prevention tasks in the area of OHS themselves, provided they have the necessary knowledge. A qualified OHS specialist is only required once you employ more than 25 people.
What fines can I face for failing to meet registration obligations?
Failing to register in the employer register with the OSSZ can result in a fine of up to 20,000 CZK (repeat offences may attract higher penalties). Failing to meet the notification obligation with a health insurance fund can result in a fine of up to 200,000 CZK. Failing to register with the tax authority may result in a penalty imposed by the tax administrator for non-compliance with the registration obligation.
DokladBot helps you stay on top of everything
Taking on your first employee brings dozens of new obligations and deadlines. DokladBot helps you keep track of all the important dates — just photograph a document or send a question via WhatsApp and we'll remind you what needs to be taken care of. Whether it's the deadline for remitting insurance contributions, submitting the JMHZ, or preparing documents for your payroll accountant.
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Useful links to official sources
- ČSSZ — Employer Register (registration, changes, deregistration)
- ČSSZ — Social Security Contributions
- ČSSZ ePortal — Employer forms
- MPSV — Unified Monthly Employer Report (JMHZ)
- Financial Administration — Tax subject registration
- MPSV — Core employer obligations in the area of OHS
- Public Administration Portal — Employer obligations
This article is intended as a general informational guide and does not constitute legal or tax advice. The information is based on the legislative state as of February 2026. For advice on your specific situation, we recommend consulting a tax adviser, accountant, or lawyer.
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