In certain cases, Hungarian companies and employers are responsible for paying social security benefits. These tasks can be outsourced to providers offering social security disbursement agency services.
Through its social security experts, RSM’s payroll team performs the tasks of a social security disbursement agency on behalf of a number of companies as part of, or even independently of outsourced payroll services.
When is setting up a social security disbursement agency mandatory?
- If the number of insured persons employed already reaches or exceeds 100 on a permanent basis.
- If the number of insured persons employed by the company is likely to exceed 100 on a permanent basis.
The headcount of 100 for insured persons includes persons employed and all insured persons as defined in the Social Security Act, including, for instance, students pursuing vocational studies under an employment contract , or individuals with assignement contract.
What knowledge is required for performing the tasks of a social security disbursement agency?
If a company qualifies as a social security disbursement agency based on the regulations, it must perform its social security functions at its own expense. Calculating monetary health insurance benefits is a complex tax that requires the staff working at the social security disbursement agency to have an up-to-date and thorough knowledge of the Hungarian legislation.
Performing the functions of a social security disbursement agency requires an understanding of complex legislation, including social security and health insurance regulations, the Labour Code, the Act on the Code of General Administrative Procedure, and contribution and tax laws.
Possessing a social security administrator qualification ensures that the provider has acquired the necessary knowledge and, being a company offering social security disbursement agency services, RSM’s team of experts possesses this qualification.
What are the benefits of outsourcing the tasks of a social security disbursement agency?
As the operation of a social security disbursement agency requires a significant amount of additional work and specialised expertise, outsourcing the functions of a social security disbursement agency is a useful alternative for companies, allowing them to save considerable time and money.
- Companies no longer need in-house staff that possesses specialised knowledge of social security matters.
- Companies are not responsible for and not paying for the regular training of staff.
- Companies are not responsible for the continuous operation of a social security disbursement agency (arranging for substitutes when their staff is on paid leave or sick leave).
- The service provider is responsible for monitoring and complying with reporting obligations and meeting deadlines.
- Service providers with liability insurance offer a guarantee for their service.
The key tasks of a social security disbursement agency include:
- assessing and recording insurance liability and continuous insurance periods;
- assessing claims for monetary health insurance benefits and paying benefits;
- assessing accidents at work and occupational diseases as provided for in the Act on Compulsory Health Insurance Benefits and its implementing Decree, and paying benefits within the statutory deadlines;
- calculating monetary benefits paid, accident sick pay and sick pay contributions and settlement with the Health Insurance Fund, along with data reporting;
- calculating, paying, accounting for and data reporting on benefits claimed on a passive basis;
- maintaining forms and records of benefits awarded and paid in the prescribed form;
- in the case of benefits received without justification, conducting the procedure for ordering the repayment of such benefits, including the issue of a resolution, and settlement of repaid benefits with the Health Insurance Fund;
- deducting statutory taxes and contributions from monetary benefits and claiming available tax allowances;
- other administrative tasks of social security disbursement agencies.
Why should you choose RSM’s comprehensive social security disbursement agency services?
- With its extensive knowledge of several software applications and many years of social security experience, RSM’s social security team offers high-quality service by performing the tasks of a disbursement agency on behalf of its clients.
- We are able to offer our social security disbursement agency services either by using one of our proprietary payroll softwares or through remote access to the client’s own software application.
- When a client engages us to perform the tasks of a social security disbursement agency by using its own software, data transfer takes place quickly with immediate transition, and administrative and payroll processes can continue smoothly without having to replace the payroll software already in use.
- Our partner has full access to the process and results of the tasks performed.
- Our social security specialists possess extensive experience in conducting comprehensive closing social security audits covering several years and in compiling the necessary data, certificates, forms, and data reports. RSM’s social security consultants are personally involved in social security audits, ensuring effective coordination with the social security auditors.
- In addition to day-to-day social security issues, we are also able to provide professional assistance in special and rare cases (insurance status of foreign workers from third countries, individual maternity issues, etc.) in accordance with the regulations in force.
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