Elements of occupational health service
According to Hungarian law, every employer must provide occupational health examinations to their employees. Occupational health service and related medical examinations are free of taxes. At particular positions, at which employees are exposed to biological hazards, vaccination may be tax free too. For example vaccination for tick-borne encephalitis, and vaccination for epidemic prevention in flu season. However, the law regulatest exactly what examinations can be included in the scope of aptitude tests, depending ont he job and the level of vulnerability. Thus, it may be a serious problem for employers from a tax point of view if a non-occupational health test, such as birthmark screening, is included in the services, as its suitability as an aptitude test is not met or highly questionable.
Which examinations can't be part of the occupational health service?
The following is a list of the most typical health services that employers often mistakenly treat as part of occupational health.
- Laboratory tests that are not required by law to determine the suitability of an employee for a job.
- Abdominal ultrasound
- Gynecological examination
- Manager health screening
- Melanoma screening
- Chest X-ray, in case it is not required by the relevant legislation to determine the suitability of an employee for a job.
It’s important to emphasize, that these examinations are considered to be corporate benefits and they are taxed just like wages, and they can’t be part of a tax free occupational health service.
Can manager health screenings be a part of occupational health service?
It is important for all employers to keep their employees healthy, to reduce the number of lost working hours due to illness, and to increase employee loyalty. Therefore it is clear that companies strive to provide a wide range of healthcare services as a benefit to their employees at an optimal tax burden. Many different screening programs and health insurances are available on the market of healthcare services. One of the most popular workplace-related health screening programs is the manager screening, which is usually ordered for top and middle managers only.
Although it is a popular service, many employers are unaware that these screenings cannot be included in occupational health services and impose a higher tax burden on the employer than health insurance.
Taxation of manager health screenings
It is important to know, that manager health screenings and other medical screenings (outside of mandatory occupational health screenings) bought from private healthcare providers as a corporate benefit are taxed as wages.
What should an employer do when he wants to provide addittional health services to its employees?
In contrast to medical screenings taxed as wages, corporate health insurance provides a much better option for employers. It gives them the opportunity to present their employees with valuable benefits and at the same time benefit from better taxation options. Corporate health insurance may provide preventive examinations, but it is primarily focused on medical examinations after a problem occures, and treating the illness.
In case the employer provides medical services to the employees as part of a corporate group insurance these services are taxed on a reduced, 35,99% rate.
In case your company would like to offer more to its employees than what the minimum regulatory framework specifies, please consider our corporate health insurance packages.