How to determine the contractor's insurance title?


From 1 January 2016, a contractor whose contribution basis for retirement and disability insurance in a given month is lower than the minimum wage, meeting the conditions for mandatory retirement and disability insurance under a different contract of mandate, is compulsorily subject to retirement and disability insurance from the first and the second concluded contract. This rule does not apply if the total sum of the contractor's social security contribution assessment bases (under one or more contracts) or other reasons reaches the minimum remuneration. The Principal reports the contractor to ZUS on the ZUA or ZZA form, depending on the contractor's title to insurance.

Contract recipient's insurance title - contractor's obligations

The regulations do not specify what type of document the insured should submit to the payer in order to indicate the insurance title to the contractor. Thus, the parties were guaranteed discretion. It is important that the submitted documents indicate all the circumstances necessary to resolve the overlapping of titles in a given case, and thus to state that there is no need to pay contributions.

If the documents submitted by the insured turn out to be inconsistent with the facts, which means that the insurance documents submitted for the insured are incorrect, the payer will be required to submit appropriate corrections to the insurance documents.

Principal's right

Due to the change that came into force on January 1, 2016, contribution payers have the right to obtain information from the Social Insurance Institution regarding the necessity to pay obligatory social contributions for insured contractors in a given period. In such a situation, ZUS is obliged to respond to the payer only after the end of the month and after all obligated payers have submitted the settlement documentation for the contractor. Such an answer is binding for the contribution payer, which means that if it turns out that the contributions for the contractor have been settled incorrectly, the entrepreneur will be obliged to submit a correction of the previously sent billing documents.

Due to the fact that the payers of contributions may not always be informed about the contractor's insurance title, the legislator provided for such a possibility that the payers of contributions would have the right to apply to the Social Insurance Institution (ZUS) to determine whether, title to social security. If, as a result of checking the documentation, ZUS finds any irregularities, it will inform the payer, who will be obliged to prepare a correction.

Example 1.

From March 1, 2016, the contractor was reported to the pension and health insurance by the ABC company.

On May 20, 2016, the company applied to the Social Insurance Institution (ZUS) to examine the correctness of the contributions due for March 2016 for the contractor, the contributions were calculated from the base of PLN 1,500.00. ZUS stated that from March 1, 2016, this person was also reported as a contractor by the XYZ company. This company registered the contractor only for health insurance and settled the premium for it from the base amounting to PLN 800.00. In this situation, in response to the request of the ABC payer, ZUS will indicate that the company correctly accounted for the contributions for March. On the other hand, XYZ will be notified that it should report this person to the compulsory social and health insurance, as the basis for the amount of contributions under the first contract did not reach PLN 1,850.00, i.e. the amount of the minimum remuneration for work in 2016, also under the second contract. ZUS will send a request to XYZ to submit a deregistration for the contractor from health insurance on the ZUS ZWUA form, with the date from March 1, 2016, and a notification to social and health insurance ZUS ZUA from March 1, 2016, as well as to correct the documentation settlement by submitting a ZUS RCA report for the contractor with the basis for calculating social security contributions in the amount of PLN 800.00.

Due to the fact that the ordering party relies on a written or oral statement of the contractor, if it later turns out that the payer made an incorrect decision whether to report it only to health insurance or also to the old-age and disability pension insurance, it will be necessary to correct the documents sent to ZUS -at. If the entrepreneur pays only the health insurance premium and, consequently, it turns out that he also had to pay the retirement and disability pension contribution, the payer's account will include underpayment of pension and accident contributions and overpayment of the health insurance premium.