EY Payroll Newsletter

New forms for health insurance cash benefits

In January 2024 several forms concerning health insurance cash benefits were changed.  The main change is primarily under the first point of the documents. That is because Section 62 (1b) - (1c) of Act LXXXIII of 1997 [Health Insurance Act] entered into force on 1 July 2023, based on which clients can declare whether they opt for written or electronic (i.e., via the Government Portal) communication with the authority. Clients (claimants) are only required to make this declaration if their employer does not operate a social security disbursement facility.

The latest forms for infant care benefit (csed), child care fee (gyed), sick pay (táppénz) and child-related sick pay (gyáp) can be downloaded from the website of the Hungarian State Treasury . There are changes to the accident report as well.

New information booklets available on the tax authority’s website

The National Tax and Customs Authority has updated many of its information booklets, including those related to personal income tax, employment related contributions and other levies. Specifically, up-to-date information is available on, for example, simplified employment, social contribution tax, student employment, rehabilitation contributions and health care service contributions.

Monthly cap on reimbursement of commuting expenses published in the Official Bulletin

Based on Point b) of Section 3 (3) of Government Decree 39/2010. (II. 26.) on the Reimbursement of Commuting Expenses, employers can reimburse commuting expenses up to HUF 56,240 per month in 2024.

Central Bank base rate change

Effective as of 28 February 2024, the Central Bank reduced the base rate from 10.00% to 9.00%, which affects the calculation of the self-revision fee in the monthly return. (Decree No. 3/2024. (II. 27.) of the President of the Hungarian Central Bank)

Change in the amount of health and safety fines

As of 1 March, the provisions on health and safety fines have become stricter. The new rules are set out in Government Decree No. 25/2024. (II. 14.).

Pursuant to the Decree, health and safety fines can range from HUF 100,000 up to HUF 1 million. The health and safety fine base rate is HUF 100,000 for each seriously endangered employee (serious endangerment means a hazard which represents a high probability of an accident or illness occurring and in which severe impairment is expected, particularly an accident at work or an occupational disease).

The amount of the fine depends on a number of factors. It is calculated taking into account multipliers, increasing and decreasing options. Section 5 sets out in detail which multipliers should be applied in which cases, for example, if several violations of occupational safety standards occurred simultaneously, if a serious endangerment persisted for a certain length of time, or if it was an accident at work or a fatal accident at work.

If the health and safety authority imposed a health and safety fine in a previous procedure (within three years), the fine for the repeat violation will increase by one and a half times. For each subsequent repeat violation that occurs within three years, the most recently applied multiplier will be doubled for each fine.

For small and medium-sized enterprises decreasing items have been defined, and the ceiling of health and safety fines has been reduced as well: up to HUF 25 million for micro and small enterprises, and HUF 50 million for medium-sized enterprises. The discount, however, does not apply in the event of a fatal accident at work.

Nonetheless, fines for SMEs can also increase by up to 20% in a number of cases. Cases like this include when it is determined that the threshold for hazards for which a threshold is established is exceeded by 20%, if no health and safety representative is elected, if no health and safety trainings were offered, and if occupational health services are not provided. The health and safety authority may, at its discretion, reduce the fine by up to 20% if:

    a)      the employer demonstrated support to investigate the facts,

    b)      the misconduct of the employee also contributed to his/her endangerment, and

    c)       the employer implements preventive measures that are stricter than the health and safety regulations in                force. 

Preparation of the 2023 tax returns

By January 31, all disbursers and employers issued the tax certificates for 2023 for private individuals.

As previously, the tax authority will prepare a draft return for 2023 in 2024 as well based on the data declared by disbursers and employers, and the information available. The draft will be available from 15 March 2024 through KAÜ identification (Government Portal, e-ID card, facial identification, telephone ID) on the eSZJA website.

Until 18 March 2024, those who do not have a KAÜ ID and have not submitted their 2023 return themselves can request the draft to be posted by SMS, mail, phone, in person or electronically:

  •        by SMS at +36 (30) 344 4304 (the message must include the tax ID number and the date of birth as         follows: SZJAspacetaxIDnumberspaceyearmmdd),

  •        using the online form available on the tax authority’s website (http://www.nav.gov.hu/eszja/eszja),

  •        using the form “Kérelem az adóbevallási tervezet papír alapon történő átvételéhez” (“Request to receive         the draft tax return on paper") (BEVTERVK) which can be downloaded from the tax authority’s website,

  •        by post, in a non-formal letter,

  •        via the telephone information system of the tax authority (calling Infoline 1819)

        The draft tax return will be posted to the individual's home address by registered mail, no later than by 30         April 2024.

        The draft prepared by the tax authority contains the following:

  •       income subject to personal income tax and its tax liability

  •       income taxed under EKHO taxation (simplified contribution to public revenues) and its tax liability

  •       the taxable part of the income from simplified employment

  •       the income forming the basis of social contribution tax and the social contribution tax payable

Employers are advised to encourage their employees to compare the data in the tax certificate with the data included in the draft. The draft can be checked, approved or amended from 15 March on the eSZJA website. The deadline for filing the return, paying the tax and submitting the 1+1 percent declaration is 21 May 2024. It is important to note that if the tax return is not confirmed or amended, the employee’s personal income tax return filing obligation for 2023 will be deemed fulfilled as at 21 May 2024.

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