Czech Republic Professional Employer Organisation (PEO) Services

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Czech Republic Professional Employer Organisation (PEO) Services 

The Czech Republic is a strongly developing entrepreneurial economy in the Central and Eastern European (CEE) bloc and an increasingly attractive territory for companies launching international expansion. Planning your international growth alongside a Professional Employer Organisation (PEO) such as Bradford Jacobs means you can count on customised solutions for locating staff who can be operating in the Czech Republic within a week.

CEE countries display a pro-business culture, growing consumerism and rising living standards with cost-effective, highly-skilled and productive workers. The Czech Republic is a prime mover as a member of the ‘V4 Group’ alongside Hungary, Poland and Slovakia, who lead integration with fellow members of the European Union (EU). The automotive industry accounts for close to 80% of Czech exports, while service industries account for around 60% of GDP, which is projected to grow to €278 million in 2021. 

Other key sectors of the Czech economy are aviation, transport engineering, pharmaceuticals, machinery and tools.The Czech government is making a sustained effort to attract and encourage investment. Various initiatives exist, including tax relief schemes, EU subsidies, research and development tax allowances, job creation subsidies, and more. 

Further incentives are available for businesses targeting specific industries.Companies considering opening a subsidiary or branch in the Czech Republic should consider the most viable and effective alternative, by partnering with Bradford Jacobs. Our PEO international recruitment specialists will recruit the staff to build your highly-qualified workforce. Then, our Employer of Record (EOR) local specialists enable clients to operate staff in-country with no worries over human resources, tax, payroll, employment legislation and registering employees with the relevant authorities – while always staying up to speed with changes in laws and regulations.

As part of our service, we file returns and associated payments for wage tax and social security contributions directly from our payroll system to the relevant authorities, relieving you of the following responsibilities:

  • Registering employees with the Labour Office and the tax and social insurance authorities. European Union nationals do not need a work permit but must still be registered at the Labour Office. Non-EU nationals must apply for an Employment Card, which is valid for a maximum of two years
  • Registering employees with the Czech Social Service Administration (CSSA). Everyone working in the Czech Republic is insured with the CSSA. The social security contribution is 8% of gross salary and is automatically deducted from monthly pay by the employer. Employers also have to pay social insurance for their employees from their own funds amounting to 26% of gross wages. This covers sickness and unemployment benefits and pension insurance.
  • If necessary, registering company with the Czech Registry Court and Commercial Register. Companies planning to set up a subsidiary can expect the process to last at least six weeks and need to complete a 20-page document plus various certificates and forms. Companies running their own payroll must obtain employer social security and tax numbers, register to pay taxes, register employees with social security authorities
  • Creating contracts. Employees must receive a written contract detailing the work, location and duration of contract. It need not include salary details but these must then be confirmed in a separate document
  • Applying special tax status for expatriates if applicable
  • Establishing payroll, calculating salary payments, withholding tax, allowances and social insurance deductions
  • Filing annual tax returns for the employees. The return has to be submitted by April 1 of the following year, or July 1 if filed by a certified tax adviser or solicitor. In which case, a power of attorney in respect of the tax adviser must be submitted to the tax authority by April 1 upon which the deadline for submission of the tax return is automatically prolonged to July
  • Producing year-end accounts and statements

The following step-by-step guide highlights how Bradford Jacobs can simplify creating the blueprint for your company’s expansion into the Czech market without having to open a legal entity in the country.

  • Your company is ready to deploy an existing employee to the Czech Republic or recruit in-country through our international PEO recruitment network
  • Once the candidate is selected, we step in as EOR through our legal Czech agency, guaranteeing compliance with employment contracts, payroll, human resources, tax and social insurance regulations under both Czech law and European Union directives
  • Where necessary, Bradford Jacobs deal with obtaining visas and work permits
  • The parent company has day-to-day operational control of their employee, while Bradford Jacobs manage all work-related registration formalities and our consultants ensure employees are aware of holidays, benefits and entitlement policies
  • Employees send us completed time sheets and approved expenses claims and we invoice you, the employer. When paid, we deduct all contributions to the Czech tax and social insurance authorities and transfer the balance into the employee’s bank account

Within a few days your company has a fully operational international presence in a new market, perfectly placed to explore further expansion, without risking the expense, uncertainty or hassle of setting up your own subsidiary or branch office.

Using Czech Republic Professional Employer Organisation (PEO) Providers Features and Benefits

Bradford Jacobs’ global Employer of Record (EOR) and Professional Employer Organisation (PEO) employment solutions enable employers to have a workforce operating legally, officially – and promptly – in the Czech Republic. This is the efficient, fast and stress-free alternative to the time-consuming, hazardous and expensive exercise of establishing a legal entity in the country, whether as a subsidiary or branch.

You, the company, select the ideal employee from the candidates we source, then Bradford Jacobs handle the rest. Our services include:

  • Specific support for all nationalities working for your company in the Czech Republic
  • Ongoing business and human resources support from our local specialists
  • Information and advice regarding any treaties on expatriate tax, double taxation, social security agreements and reclaimable expenses
  • If employees use their own accountant, fees are covered to the limit of Bradford Jacobs’ accountancy fees
  • Five million Euros cover for employer’s business liabilities
  • Around the clock contact with Bradford Jacobs’ consultants ensures the employee can focus on their work

Czech Republic PEO Features and Benefits for Employer

  • Rapid solution to onboarding employees for your international expansion into the Czech Republic
  • Employers registered with the Labour Office and tax and social insurance authorities. European Union nationals do not need a work permit but must still be registered at the Labour Office. Non-EU nationals must apply for an Employment Card, valid for two years
  • Employees are registered with the Czech Social Service Administration (CSSA), which is a requirement for all workers in the Czech Republic. This covers sickness and unemployment benefits and pension insurance
  • Creating contracts. Employees must receive a written contract detailing the work, location and duration of contract. It need not include salary details but these must then be confirmed in a separate document
  • Applying special tax status for expatriates if applicable
  • Establishing payroll, calculating salary payments, withholding tax, allowances and social insurance deductions
  • Filing annual tax returns for the employees. The return has to be submitted by April 1 of the following year, or July 1 if filed by a certified tax adviser or solicitor, in which case a power of attorney must be submitted to the tax authority by April 1 upon which the deadline for submission of the tax return is automatically prolonged to July 1
  • Producing year-end accounts and statements
  • Full transparency gives complete control over operating budgets as all costs are detailed at the outset
  • Time-efficient – minimal paperwork removes red tape involved in setting up a subsidiary or branch in the Czech Republic
  • Expert guidance with employment and compliance issues
  • Reduced accountancy and legal costs
  • Bradford Jacobs’ services include all statutory professional insurances

Czech Republic PEO Features and Benefits for the Employee

  • Worry-free compliant local contract. Employers must provide a contract if employee has worked at least one month or eight hours a week
  • On-time and 100% accurate salary payment
  • One-to-one professional human resources advice on employment-related questions
  • Updates on tax and compliance regulations

Czech Republic PEO Contract of Employment Benefits

  • Employee receives comprehensive written employment contract detailing type of employment, location, duration of contract if applicable. The contract need not specify the salary, but if not this must be in a separate document giving the amount in Czech Koruna
  • Prior to contract offer, Bradford Jacobs provide breakdown of all clauses that must be included in the contract with an overview of all Czech protocols and provisions
  • Bradford Jacobs’ advisers will recommend to employers where provisions can be enhanced so they can offer a competitive salary and additional benefits, such as health insurance and housing allowances
  • Salary, commission, bonuses and benefits are all contractually agreed with the employer and included in the contract

Czech Republic PEO Human Resources (HR) Services

  • On-call service to assist with routine HR concerns such as absence management and processing expenses
  • Guidance with Czech compliance rules, such as any legal obligation to record hours worked and overtime provisions
  • Prompt 24/7 support with disciplinary or grievance issues needing urgent response
  • Regular updates and on-call advice to ensure ongoing compliance with changes in Czech employment laws
  • Liaison with employees to ensure they are up-to-date with companies’ internal policies and handbooks
  • Accident insurance as and if required by Czech law is provided as standard, covering occupational and commuting accidents and occupational illness

Czech Republic PEO Payroll Services

  • Fully-compliant international PEO and EOR funding process, ensuring employees and competent authorities are paid electronically on time into nominated bank accounts. It is mandatory to make payments to authorities from an in-country Czech bank account
  • On-time paperwork for all statutory tax filing and social insurance submissions and end-of-year reporting to avoid financial penalties from the Czech tax and social insurance authorities
  • Payments made to employees in Koruna on fixed weekly/bi-weekly/monthly basis as required
  • Compensation, benefits, termination and severance issues are also covered by Bradford Jacobs’ EOR and PEO services, if the employment relationship ends

Czech Republic PEO Visas, Permits and Migration

Bradford Jacobs ensure the process of navigating through the procedure to obtain work permits or visas for migrating employees to the Czech Republic are handled as smoothly as possible, but different rules apply depending on a number of factors. European Nationals do not need a work permit to take up employment. Those from outside the EU or European Economic Area need either a Blue Card (for skilled workers) or an Employee Card (for unskilled workers). Both are dual purpose as they give the person the right to reside and work.

Czech Republic Hiring and Recruiting

Bradford Jacobs’ expertise as a Professional Employer Organization (PEO) will source top-level staff to fill key roles for your expansion into the Czech Republic, either locally or from around the world. This is backed up by Employer of Record (EOR) outsourcing services to handle all aspects of staff administration and compliance with employment, tax and registration laws as well as European Union directives. We provide the solutions to foreign expansion without companies risking the expense and uncertainty of establishing a subsidiary. This is the efficient, cost-effective and sensible alternative to operating in the Czech Republic. Our services are always customised to the needs of our clients.