Failure to Pay Health Insurance in the Czech Republic Can Cost You Your Business

In the Czech Republic, both companies and sole proprietors are legally required to pay health insurance contributions. Failing to meet this obligation can lead to serious consequences, including the loss of a business license. In some cases, health insurance providers may even initiate the revocation process.

This action is typically taken when an entrepreneur consistently ignores their health insurance payments and fails to respond to repeated notices. License revocation is considered a last resort after multiple attempts to collect the unpaid contributions. If a business owner neglects their state health insurance obligations, the Trade Licensing Office may administratively revoke their license at the request of the health insurance company.

What Happens If You Don’t Pay? Warnings, Penalties, and Enforcement

If a self-employed person fails to meet their obligations to the health insurance company, they first receive a written reminder stating that an audit of accounting records has identified unpaid insurance premiums and penalties. A statement of outstanding payments is included with the notice.

A similar notification is also sent to entrepreneurs who have not submitted a tax return. If the debt remains unpaid, payment orders or arrears statements are issued, which may later become subject to enforcement proceedings.

The collection process further increases the total debt due to additional penalties, fines, and enforcement costs. Therefore, it is crucial to address the situation as soon as possible – by consulting with health insurance company representatives, requesting a repayment plan, or exploring other options to settle the debt, the insurance company advises.

Advance Payment Amount for Health Insurance

The minimum advance payment for health insurance this year is CZK 3,143 and must be paid for January. Given the payment deadline, which falls between the first and eighth day of the following month, sole proprietors must adjust their advance payments no later than February 8.

If an entrepreneur later receives a higher assessment for health insurance in their payroll, they must adjust the payment amount accordingly. Advance payments based on income and expenses from the previous year are first paid for the calendar month in which the income and expense report was or should have been submitted to the insurance company.P.S. Need guidance on health insurance, taxation, or business regulations in the Czech Republic? The experts at 360WEDO are here to help. Simply submit your request on our website, and we’ll get back to you promptly. We also offer full-service outsourced accounting to keep your business compliant and running smoothly.

https://www.podnikatel.cz/aktuality/kaslete-na-zdravotni-pojisteni-pojistovna-se-muze-postarat-ze-vam-zrusi-zivnost