Social security rights and obligations in the European Union – employee registration

In this section you can read about the rules of employee registration.

Kulcsszavak: employee registration employment employer registration of insured persons

In Hungary, employers are required to register their employees with the tax authority before the commencement of their employment at the latest.

Employees can also be registered by an agent of the employer. To do so, you must notify the tax authority of the power of attorney in advance.

If as an employer you fail to register an employee, the tax authority may impose a default penalty.

As taxpayer you may have to pay a default penalty of up to HUF 1 million if you employ(ed) an unregistered employee. If a taxpayer registers an insured person late but for the entire period of the actual employment before the audit starts, the tax authority may only sanction late registration. In such cases, the tax authority may forego the penalty.

The taxpayer may have to pay a default penalty of up to HUF 500 000 if it registers an employee supplying inaccurate, incomplete or false data.

The upper limit of the default penalty the employer may have to pay for failure to register or registration with inaccurate, incomplete or false data is the product of the number of employees affected by the failure to register or registration with inaccurate, incomplete or false data and the highest amount of the penalty payable for an unregistered employee or registration with inaccurate, incomplete or false data.

Employees must be registered before the commencement of their employment.

Employees may only be registered electronically using Form 21T1041.

The software for filling in Form 21T1041 and the corresponding guide can be found on the website of the tax authority (www.nav.gov.hu) following the path: Form completion software → Form completion software → Detailed search of software, here:

https://nav.gov.hu/nav/letoltesek/nyomtatvanykitolto_programok.

There is no payment obligation associated with this procedure.

National Tax and Customs Authority

Further information on the obligations of foreign employers:

https://en.nav.gov.hu/data/cms560439/SOCIAL_SECURITY_CONTRIBUTION_AND_SOCIAL_CONTRIBUTION_TAX_(FOREIGN_COMPANIES)_2021_.pdf

 

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Act CL of 2017 on the Rules of Taxation

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