As of 1 January 2026, the Single Monthly Employer Report (SMER / JMHZ) will come into effect. This represents a new system of communication between employers and public authorities, in particular the Czech Social Security Administration, the Financial Administration, the Labour Office of the Czech Republic, and, for example, the Czech Statistical Office. What will this new system practically mean for employers?
First and foremost, it should be noted that the JMHZ system does not include health insurance companies. Employers will therefore continue to register employees with health insurance providers and submit monthly reports in accordance with the current rules.
Under the JMHZ system, information decisive for the calculation of the advance personal income tax on employment income will newly be reported, individually for each employee. Not only for this tax-related reason will employees who are not covered by sickness insurance also have to be registered within the JMHZ system. Moreover, a significant amount of information will be reported that employers have not previously been required to provide to public authorities at all. The Financial Administration will thus have a complete overview of all income and will be able to assess independently whether such income constitutes taxable income, income subject to monthly tax advances, or tax-exempt income.
The broad use of data from the JMHZ system also expands the scope of information that employers will be required to report in relation to each “employment-type” relationship. For example, data used by the Czech Statistical Office require information on an employee’s attained level of education, among other details.
Another significant change concerns the deadline for registering new employees, which will be shortened from the current 8 days from the commencement of employment to an obligation to register the employee no later than before the moment they start performing work.
On the other hand, certain reporting obligations will be eliminated for employers, such as the submission of pension insurance records, the annual reconciliation of employment income tax, or the notification of compliance with the mandatory quota for employing persons with disabilities, as well as certain obligations related to the employment of foreign nationals.
The Single Monthly Employer Report will in practice be submitted via the Czech Social Security Administration (through the e-portal, via a data box, or through a public API interface for electronic filings). The data will then be distributed to the relevant authorities, and the report may also be submitted by an authorised representative.
Given the significance of this change, a transitional period from January to March 2026 has been established. The obligation to proceed in accordance with the JMHZ system for the first time will therefore apply as of 1 April 2026.
