Who is obliged to make the calculation?
- each employer
In what deadline?
- in December and no later than by 31 December, i.e. at the last payment of income from employment in the current year
For which employees?
- those who have received a salary during the entire taxation period from this employer and
- those who did not change permanent residence or habitual residence between the towns and municipalities which prescribed the payment of income tax surtax. A change in surtax rates during 2022 requires the application of the average annual rate.
In which cases?
- if the employee used the right to maternity, parental or adoption leave, sick-leave longer than 42 days and another leave for which, according to special regulations, remuneration for the salary is paid at the expense of the compulsory insurance funds, unless he or she used this right in all the 12 months of the taxation period
- the taxation burden in a certain month was different so tax was paid either in a higher or smaller amount
Note: The employer must use only the data as presented in the Withholding Allowance Certificate considering the moment from which the stated data apply. In case of changes during the month in which the personal allowance is used, the same shall be rounded up in favour of the taxpayer to full months.
If the employer fails to calculate the annual employment income tax, he may face a fine of HRK 10,000.00 to HRK 50,000.00.
Steps to be made before the last salary calculation in 2022:
1. determine exactly which employees are subject to the annual calculation
2. check the Withholding Allowance Certificate of these employees to accurately determine the amount of their annual personal allowance
3. determine the exact amount of the annual income of these employees
4. remind yourself on how your accounting program completes the whole procedure (the last time this was done, was in December 2021)
Look at what else we wrote about, maybe the answer to your question is already there.
