How will nm do business in the secondary activity in 2020

The limit for the payment of social insurance in the performance of self-employment is increasing for the year 2020, so it is possible to pay the income and insurance. However, the salary is that if the people live for only a hundred years, the limit is relatively lower. Gabriela Ivanco from Mazars explains what happens to me and what will continue to be the case in 2020.

Many employees, students or retirees own a self-employed activity. In their case, it is an act in addition to a separate activity, in which is this activity advantageous?
In the case of social insurance and health insurance, the minimum exchange base may not be observed, as is the case with the main independent activity. In these cases, it is a matter of significant legislative assistance, or in the performance of the main independent activity, at least a minimum social and health insurance must be paid even in the event of loss.

If someone wants to drink a dime, what do they have to look for?
Even in the case of ancillary self-employed activity, it is necessary to fulfill the reporting obligation at all tax institutions, ie also, for example, at the health insurance company, so that the exercise of ancillary self-employed activity is correctly conducted in the pot system.

Employees performing ancillary self-employed activity are at a lower employment limit due to a change of employer for this period of ancillary activity, mainly with very consequences when paying health insurance. In other words, if the OSV does not have a concurrence of employed and self-employed activities after one hundred years, the final reason for the activity to be considered as a secondary and self-employed activity changes to the main one for this period. It is necessary to report this fact to the Czech Social Security Administration and to provide health insurance within eight days.

How high is the actual recovery base for the calculation of the levy on the secondary activity?
Self-employed persons performing, in addition to an independent self-employed activity, pay the health insurance company always from the actual deposit, so they do not have to comply with the minimum deposit. The real exchange basis for the calculation of social and health insurance is half of the tax base. In the case of gross profit, ie income from expenses, you know, for example, 200,000 crowns and the actual recovery base of 100,000 crowns. The rate of social security is 29.2% of the exchange base and otherwise 29,200 crowns (100,000 krt 0.292 = 29,200). Ron’s health insurance rate is 13.5% of the deposit and another 13,500 crowns. Here it is a real exchange deposit according to the actual gross profit, in our example 200,000 krt 0.5).

For comparison, the main activities and the minimum exchange base for health insurance for the entire calendar year 2019 amount to 196 194 crowns. Minimum deposit for 2020 and 209,010 crowns.

If someone forges an independent activity, do they always have to give tax returns and reports on income and expenses?
Yes, they must complete and submit tax returns to the financial office and reports on income and expenses to the local district District Social Security Administration and the appropriate health insurance company. The terms are the same as for OSV performing mainly independent self-employed activities.

What about the threat when someone does not submit these documents?
Experience shows that some self-employed persons performing ancillary self-employed activity actually underestimate their actual obligations. High penalties can be imposed for this non-compliance. In case of unsightly, both institutions can impose a fine of up to 50,000 crowns. It is necessary to remember this even with a low profit margin in the breath of tens of thousands of crowns.

When is social security not applicable?
When performing a separate self-employed activity, the social insurance may not be paid at all, when the gross profit is up to the limit. For the year 2020, it is CZK 83,603 (32,510 K x 1.0715 x 2.4 = limit 83,603). It is therefore possible to receive and not pay social security. For comparison, for the entire calendar year 2019, the limit is 78,476 crowns.

What if someone lives a separate side activity only after a hundred years, how is it with social security contributions?
When performing ancillary activities after a hundred years, the limit decreases relatively, so for example, in the case of a gross profit for six months in the amount of 75,000 crowns, social security is payable from an ancillary self-employed activity. The limit for unpaid social security is in such a case the amount of 41,802 crowns (83,603/12 = 6967 krest six months of ancillary activity = limit 41,802).

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