Common Mistakes Entrepreneurs Make in Social and Health Insurance Reports

Although filling out reports for the Czech Social Security Administration and health insurance companies takes only a few minutes, there are many potential mistakes that entrepreneurs can make.

To better understand the most common errors and how self-employed individuals can avoid them, we spoke with employees of the Social Security Administration and insurance companies.

Variable Symbol: A Common Source of Errors

One of the most frequent mistakes in reports submitted to the Czech Social Security Administration (ČSSZ) involves incorrect completion of mandatory fields in the Income and Expenditure Report for Self-Employed Persons. These errors often include selecting the wrong method for applying an overpayment, entering incorrect numbers, or using an improper format for required symbols.

A particularly common issue is confusion between the variable symbol and the birth number, leading to misfiled documents. Another frequent mistake is incorrectly indicating the number of months of self-employment. Some individuals mistakenly check the box for the entire year while also marking individual calendar months, which results in their report being rejected, explains Jitka Drmolová, press secretary of ČSSZ.

Fortunately, these errors can be easily avoided by using the ČSSZ electronic portal. The interactive online form automatically detects missing or incorrect information, preventing submission until all fields are correctly completed. Additionally, self-employed individuals who submit their reports as registered users on the portal benefit from auto-filled basic data, including the variable symbol—significantly reducing the risk of mistakes, says Jitka Drmolová.

Even Months of Secondary Self-Employment Can Cause Issues

Self-employed individuals often make mistakes when reporting the number of months of self-employment and the total amount of insurance premiums paid.

One of the less common – but highly impactful – errors is failing to indicate that self-employment is a secondary activity rather than the main source of income. Many reports omit the months of secondary self-employment or fail to specify the reason for this classification. In some cases, self-employed individuals mistakenly start paying contributions, even though their income has not exceeded the required threshold.

Additionally, once an application for voluntary participation in pension insurance has been submitted, it cannot be changed or withdrawn. This can lead to an unexpected obligation to pay pension insurance contributions – either due to classification as a main activity or voluntary enrollment – when, in reality, no such obligation would have applied for secondary self-employment, explains Jitka Drmolová.

Mandatory Electronic Filing of Declarations

Starting this year, self-employed individuals who have a statutory data box are required to submit their reports electronically. Entrepreneurs have several options for doing so:

1️⃣ Via the ČSSZ electronic portal – This method requires logging in using data box credentials, a citizen’s identity document (such as a bank ID, eObčanka, or eGovernment mobile key), or an EU-recognized foreign identification under the eIDAS Regulation. The completed interactive form is then sent directly to the data box of the relevant district social security office or the e-Filing data box (ID: 5ffu6×k).

2️⃣ Via a data box without logging into the electronic portal – The completed form (in XML format) can be sent directly through the entrepreneur’s own data box to the relevant district social security office or the e-Filing data box (ID: 5ffu6×k).

3️⃣ Via email with an electronic signature – The completed form (in XML format) can also be submitted via email, using a recognized electronic signature, to the filing office of the relevant district social security office (through the VREP/APEP electronic filing interface).

Common Mistakes in Electronic Filings

Errors in Line 6: “Number of months the minimum contribution base was applied”

One of the most frequent mistakes occurs when incorrectly filling out Line 6, which directly affects the calculation of health insurance contributions and the advance payment for 2025. Entrepreneurs must ensure that this figure matches the information provided in the section “In 2024, the minimum contribution base in months was not established for me” to avoid incorrect calculations.

Incorrectly Declaring Main vs. Secondary Income

Many self-employed individuals mistakenly classify entrepreneurship as their main source of income. However, those who paid taxes under the flat-rate regime—even for part of the year—must ensure that the minimum tax base applies to all months of self-employment. This means the value in Line 4 (“Number of months of self-employment in 2024”) must match the value in Line 6 (“Number of months in which the minimum tax base was applied”).

Errors in Reporting Advance Insurance Payments

Some self-employed individuals incorrectly report their total advance insurance payments for 2024 under personal income tax contributions. This often happens when:

• They forget to include an overpayment from the previous reporting period.
  
• They received an overpayment refund during the reporting period but did not account for it when completing the report.
  As a result, they mistakenly enter the full amount of advances paid, including the refunded overpayment, in Line 41.

Don’t Forget to Provide Supporting Documents

Health insurance providers often encounter cases where self-employed individuals who also belong to a state-insured category – such as mothers on maternity leave, pensioners, or students – are unaware that they must still pay health insurance advances (except during their first year of self-employment). Many mistakenly believe that their insurance contributions are fully covered by the state.

Additionally, self-employed individuals often forget to submit supporting documents that confirm their simultaneous state-insured status. For example, if they receive parental benefits, they need to provide an official certificate of receipt.

Another common mistake is failing to provide proof of entitlement to sickness benefits or maternity benefits. If an individual qualifies for these benefits for an entire calendar month, it can lower the minimum contribution base proportionally to the number of affected months. Failing to document this properly may lead to overpayment or miscalculation of insurance contributions.

Avoid costly mistakes and ensure your filings are accurate with expert assistance from 360WEDO. Our specialists are ready to help you navigate tax, business, and accounting requirements in the Czech Republic.

To get a personal consultation simply fill out the form on our website, and we’ll contact you to answer all your questions.

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