# Payroll in plain words · DameDoklad docs

> Gross and net pay, contributions, income tax advance, employment contracts and agreements, ELDP and reports.

Source: https://damedoklad.cz/en/docs/guides/payroll/

# Payroll in plain words

Gross and net pay, contributions, income tax advance, employment contracts and agreements, ELDP and reports.

**People and payroll** is where you keep HR records and run payroll each month. Only roles with payroll permission have access.

## From gross to net

**Gross pay** is the amount in the contract. From it, these are deducted:

-   **The employee’s contributions** to social and health insurance.
-   **The income tax advance**, reduced by **tax credits**, such as the basic taxpayer credit or a child credit. The taxpayer credit only applies when the employee has signed a tax declaration.

What remains is **net pay**, which the employee receives. The company also pays **the employer’s contributions**, so the total cost is higher than gross pay.

The rates are set in the app, so you don’t enter them. They cover **2026 and 2027**. For 2027 the upper meal rate and the protected amount for attachments are not published yet: the app refuses a wage with a meal contribution or an attachment and says why, and calculates the others. Other years are not built.

## Types of employment

| Type | What it means |
| --- | --- |
| **HPP** | An employment contract. |
| **DPP** | An agreement to complete a job. Contributions depend on earnings. |
| **DPČ** | An agreement to perform work. |

## Monthly routine

1.  Fill in absences: holiday, sickness and others.
2.  Check the calculation and payslips.
3.  Close the month. Payroll posts and payments are prepared. **Create payment orders** turns them into orders in Bank: net pay, deductions, ČSSZ, health insurers and the tax office, one per due date, with the published accounts and variable symbols. You enter VZP’s account yourself in payroll settings, because we found no list of VZP’s that can be read. What has no account is listed for you and holds up nothing else. When a payment reaches a statement it pairs by itself. Mark a wage paid in cash and choose the cash desk it left from; an expense document is created.
4.  Download the reports and file them.

## Outputs

A **payslip** is the overview for the employee. **ELDP** is the pension insurance record sheet. **JMHZ** and **REGZEC** export as XML that passes the official XSD; ČSSZ’s own controls are not reproduced. For months from January 2027 they follow the MH 1.5.0.3 and REGZEC27 1.5 schemas, which ČSSZ still calls a final draft. The **health insurer overview** has a file for VZP and XML for ČPZP, OZP and ZP MV ČR by the shared schema; for the others it is a PDF working paper. The **annual tax statement** for 2026 and earlier exports as XML with Annexes 1 to 4, also as a supplementary one; it is not filed from 2027. Filing stays with you or your payroll accountant. When the net wage comes out negative, for instance in a month with no income and a health insurance top-up to the minimum base, nothing is paid out and payroll warns how much the employee owes; JMHZ then reports a net income of 0, as its instructions ask. The tax bonus does not count in the net income in JMHZ.

Annual tax settlement and OZUSPOJ are built. NEMPRI covers all six benefits: sickness, carer’s, long-term carer’s, pregnancy compensation, maternity and paternity. You record corrections under section 38i in Filings and they go on Annexes 3 and 4.

Enter **severance pay** and **compensation for damage**, such as for loss of earnings, in Overtime and bonuses on their own lines, not as other taxable income: they are taxed but are not part of the social or health insurance base (§ 5(2) of Act 589/1992, § 3(2) of Act 592/1992). They do not count in the income for sickness insurance in JMHZ.

A wage paid at once for several months is split up in Overtime and bonuses. The advance is then worked out by month under § 38h(8) of the Income Tax Act, when that is better for the employee and they have not yet claimed the monthly child credit this year. The 2027 settlement can only be estimated so far, including the student credit and the child placement credit: its form is not out, so nothing is stored or issued.

From January 2027 tax on small income without a declaration is no longer withheld but paid as a separate advance. The app does this by itself. You switch on the student credit from January 2027 on the employee’s card.

**Tips** in a restaurant are exempt from January 2027 up to 7 % of the company’s food service income for the month, shared among the employees who got tips (§ 6(9)(g) of the Income Tax Act). Enter an employee’s tips in Overtime and bonuses and the food service income on that month’s payroll. You can set each person’s exempt amount yourself, but the total may not pass the 7 %. The part over the limit is taxed and insured and nothing is paid out, because the employee already has the tips. Without the food service income all tips are taxed. Pay tips the company collected by card outside payroll.

**Health care** listed in annex 4 of the Income Tax Act, such as an extra preventive check-up or a vaccination on request, is not the employee’s income from January 2027. Set it up as the pay item Health care: it is not taxed or insured and does not use up the health benefit limit. Whether a service is in the annex is the company’s call.

## Documents

On an employee’s card you can download PDFs in Czech: an **employment contract** or agreement, an **amendment**, a **wage notice**, and after the job ends the **employment certificate** (zápočtový list) and the **confirmation for the labour office**. The content follows the Labour Code and the sections are named in the text. They are templates: read them before signing, and show a lawyer if in doubt. The app does not know qualifications, exposure time or the parties of a collective agreement, and leaves room for them. The confirmation for the labour office carries the data of the form and is not the form itself. The average monthly net earnings on it and in the REGZEC deregistration are the same figure: the previous quarter’s average by § 356 of the Labour Code, less insurance and the advance as they stand for the employee in the month the job ends, so children lower the advance as a credit, but the tax bonus is not added.

An amendment can also change the contract: payroll uses the new values from the effective date, while earlier months and locked runs stay as they were. A change of wage or hours can start on any day: that month’s wage is split pro rata by the working days each wage and working time applied to, and the payslip shows both parts. Do not end the job and start a new one for a change in the middle of a month, as two jobs would be reported and count for leave and average earnings apart. You change the wording of contracts and agreements in **Document templates**. What the law requires is filled in by the app, and a text that would drop a required part is not saved. The qualification reached and the exposure time go on the contract and print on the employment certificate. A lawyer should read what you write into a template.

If an employee has a **protected account** (chráněný účet), record the company account named in your confirmation on their card. The wage then leaves from that account. Only wage may leave it (§ 304d odst. 2 of the Civil Procedure Code), so trip reimbursements included in the payout are a payment of their own from another company account. If the company has no other account, no order is made for them and the app says why; pay them in cash. A transfer of a trip advance or reimbursement from that account is refused too. The confirmation itself is issued on the Ministry of Justice’s form; the app gives you the data for it.

## Statutory liability insurance

In payroll settings choose the insurer and the OKEČ code or the rate. In Filings one button per quarter raises an other payable to the right account, with the company ID as the variable symbol, and you pay it with an order. By decree 125/1993 Sb. the premium is worked out from the previous quarter’s bases and is due in the quarter’s first month, with a minimum of 100 CZK. The decree has no advances and no annual settlement, so the app has none either; you can download a year’s overview as a PDF.

## Sick notes, HZUPN and other filings

In Filings you upload the XML with eNeschopenka notifications that ČSSZ sends to your data box or in a DZDPN answer. The app matches them to employees, and a button inserts them into attendance. It does not overwrite another absence or a locked month, and tells you about both. For a note of more than 14 days, when ČSSZ pays sickness benefit, you can download the **HZUPN** report for when it ends. A shorter one needs none, and the app does not offer it. The **employer’s bulk notice** to a health insurer comes from contracts as XML by the shared schema for all seven insurers, and for VZP, VoZP, ZPŠ, ZP MV and RBP also as an XDP with the data of their form. What the contracts do not show, such as maternity, a pension, a student, or a correction, goes in with the Add another code button. When bonuses outrun a month’s advances a **tax bonus request** is offered as XML for EPO. Without a request the amount comes off the following months’ payments. The bonus top-up from an annual settlement has its own request (DPZDB1) on the Annual settlement tab. Recorded requests for the year’s months and for the top-up from the year before go into part II row 5 of the Vyúčtování and count into row 8. If the office paid back a different amount, correct row 5 before you file. These are all files you file yourself: the app sends nothing to any portal.

Lines of the Hromadné oznámení you add or leave out stay saved for that month. You get the XML file for every insurer, as the schema names them all. ČPZP, OZP and RBP published it themselves. VZP, VoZP, ZPŠ and ZP MV did not, the app says so, and you should ask the insurer whether it takes the file. Open the XDP in Adobe Reader with the form’s PDF it names, and send the PDF. Reading sick notes straight from ČSSZ needs the operator to turn it on and you to turn on the e-Podání ČSSZ channel in the connection settings. Nobody has tried it against the real ČSSZ yet.

You can upload employees and contracts from an XLSX spreadsheet using the template. Further sheets hold children, deductions, attendance and wages of past months. Wages taken over count in the annual insurance cap, average earnings, the year-end settlement, ELDP and the income confirmation, and post and pay nothing. A month that already has a payroll here is refused, so it does not count twice. Without wages of past months the app takes average earnings from probable earnings, which the Labour Code allows only for someone who did not work 21 days in the reckoning period (§ 355). For an employee who worked for you in the previous quarter, upload at least that quarter’s wages.