The employer must remit taxes and social insurance contributions

According to settled case law, when a court allows a claim for unpaid wages, the employer must remit taxes and social insurance contributions calculated on the gross remuneration determined by the court. Under Article 272(1), points 3 and 4, of the Labour Code, the employer must withhold the employee’s taxes under Article 42(4) of the Personal Income Tax Act and social insurance contributions under Article 6 of the Social Insurance Code. The employer must make these deductions even without the employee’s consent. Accordingly, the amount payable to the employee is the net balance after deductions (see Supreme Court of Cassation Decision No. 166 of 25 February 2010 in Civil Case No. 220/2009). Where the court awards gross pay, taxes and social insurance contributions are public claims of the State under Article 162(2), point 1, of the Tax and Social Insurance Procedure Code. Under Article 458 of the Code of Civil Procedure the State is always deemed a joined enforcement creditor in respect of public claims owed to it by the debtor. The enforcement officer collecting the wages must therefore set aside the amounts needed to discharge those liabilities.

This article is not a legal opinion or advice on any particular situation or person. For assistance with a similar matter involving taxes and social insurance contributions, consult an employment lawyer.