Inspections of employers
In 2010 CSSA offices carried out a total of 131,628 inspections to check whether employers were fulfilling their obligations; based on these inspections they issued 13,719 payment assessments. Of the more than CZK 95.302 million employers had to pay additionally in insurance contributions, CZK 81.085 million was the amount of unpaid contributions; the remaining CZK 14.217 million was charged in penalties.
CSSA inspectors imposed a total of 589 fines for CZK 2.209 million on the inspected employers for violations of their obligations, mainly for not cooperating in inspections and for failing to fulfil their reporting obligations. They imposed 1,998 corrective measures aimed at eliminating detected shortcomings; 423 of the measures concerned sickness insurance, 250 insurance contributions and 1,325 pension insurance contributions.
Inspections related to social security obligations in 2010 were carried out by 602 CSSA inspectors from all 97 organisational units throughout the Czech Republic. 106,920 employer inspections out of a planned total of 110,297 were carried out, i.e. 96.9%. Only 3,377 inspections were not carried out, mainly because of the employer’s refusal to cooperate. The CSSA inspects all employers in regular two-year or three-year cycles so that any problems are detected in good time and can be corrected before it is too late. In addition, the performance of coordinated inspections in collaboration with the labour offices and the State Work Inspectorate commenced in 2010.
Inspections of employers’ fulfilment of social security obligations in 2010
|Region||Number of inspections||Payment assessments||Fines|
|number||amount (CZK thousands)||number||amount (CZK thousands)|
|outstanding insurance contributions||penalties||total insurance contributions + penalties|
|Prague Social Security Administration||22 618||1770||27,072.0||5,762.1||32,834.1||1||20,0|
|Central Bohemian||14 142||1 354||6,297.3||1,218.1||7,515.4||21||66,0|
|South Bohemian||7 331||632||2,595.7||299,4||2,895.1||19||50,5|
|Karlovy Vary||4 017||572||2,617.4||303,3||2,920.7||39||47,5|
|Ústí nad Labem||8 386||1 070||4,554.3||541,6||5,095.9||22||45,7|
|Hradec Králové||8 063||1 001||3,990.4||707,0||4,697.4||53||172,4|
|South Moravian||14 273||1 423||8,665.4||1,228.3||9,893.7||138||647,5|
|Moravian-Silesian||12 611||1 701||8,836.9||1,736.7||10,573.6||8||46,0|
|Total||131 628||13 719||81,084.5||14,217.4||95,301.9||589||2,208.7|
Source: Report on the Results of CSSA Inspections of Employers for 2010
Receivables from social security insurance contributions
As of 31.12.2010 the CSSA’s receivables from insurance contributions, including penalties and fines, amounted to approx. CZK 60.092 billion; at the end of 2009 the figure was approx. CZK 59.713 billion. These are receivables from social security insurance contributions, including penalties and fines, cumulated from 1993. The amount payers owe in insurance contributions thus increased year-on-year by 0.64%, i.e. by approx. CZK 379 million.
The largest share of social security insurance receivables as of 31.12.2010 comprised outstanding insurance contributions (53.18%, or approx. CZK 31.957 billion). Penalties accounted for 42.61%, or approx. CZK 25.607 billion. Fines amounted to CZK 152 million.
77.25% of that amount was accounted for by employers and 22.75% by self-employed persons. Compared to the previous year receivables in respect of employers increased by approx. CZK 789 million and receivables in respect of self-employed persons by approx. CZK 1.168 billion. The overall amount of receivables registered in 2010 was divided among 556,145 debtors, an increase of 20,127 from 2009.
Analysis of the receivables portfolio shows that:
- receivables from penalties accounted for 42.61% of total receivables;
- receivables in respect of deregistered subjects accounted for 56.3% of all receivables;
- receivables in respect of debtors owing CZK 30 million and more made up 19.85% of total receivables; there are 141 such debtors, and these receivables are unlikely to be recoverable (bankruptcies and liquidation);
- employers accounted for 77% of receivables.
The DSSA, PSSA and BSSA are responsible for recovering receivables. They make use of the administrative and judicial execution of decisions and also register receivables in bankruptcy, composition and insolvency proceedings. In 2010, all of the CSSA offices applied a total of 212,758 executions and decisions; the figure in 2009 was 193,452. The CSSA recovered a total of 140,746 recoverable titles through administrative decisions in 2010, which was 38,822 (38.09%) more than in 2009. It filed 72,012 petitions for judicial enforcement of decisions, i.e. 11,136 (18.29%) more than in 2009.
Since 1.1.2008, the CSSA has claimed receivables in insolvency proceedings pursuant to Act No. 182/2006, as amended. 1,805 receivables worth CZK 1,654.5 million were registered in insolvency proceedings in 2010; 319 proceedings were completed. The CSSA also registered three receivables worth a total of CZK 6.8 million in already declared bankruptcy proceedings pursuant to Act No. 328/1991, on bankruptcy and composition.
CSSA receivables as of 31.12.2010 (CZK millions)
|Receivables||Share in %|
|total||from insurance contributions||from penalties||from fines||other|
|Share in %||100,00||53,18 %||42,61 %||0,25 %||3,95 %||---|
Explanatory notes: SEP - self-employed persons; E - employers
Source: CSSA Accounting Report for 2010