When does preferential ZUS end?


A considerable incentive for people who intend to run their own business is the possibility of paying preferential ZUS for two years. Preferential ZUS consists in paying much lower social security contributions, thanks to which more money stays in the pocket of a novice taxpayer. More money means more opportunities for business development. What contributions should be paid when the preferential ZUS ends? More on that below.

Preferential ZUS - what is it with?

One of the obligations of people running a business is to pay social and health insurance contributions to the Social Insurance Institution. Importantly, the entrepreneur has no right to opt out of insurance, even if he or she does not earn any income or does not benefit from public health care. Beginning entrepreneurs have it easier, because the amount due is several hundred zlotys lower than in standard insurance. What's the difference? People running a business can first use a 6-month start discount. After its completion, preferential ZUS is granted. However, the entrepreneur may decide to resign from the tax relief and to pay for a 2-year tax relief for new companies from the first day of running a business.

Social security contributions paid to ZUS depend on the calculation basis submitted by the entrepreneur. The payer transfers to the ZUS account an appropriate percentage of the declared basis of assessment, with the regulations stipulating only its minimum amount.

Preferential ZUS

Standard "large" ZUS

  • the lowest possible calculation basis is 30% of the minimum wage (in 2021 - PLN 2,800), i.e. PLN 840.00;
  • value of the social contribution with the voluntary sickness contribution - PLN 265.78;
  • the value of the premium for health insurance - 9% of the calculation basis for the health insurance contribution - PLN 381.81
  • the lowest possible assessment basis is 60% of the average salary (in 2021 - PLN 5259), i.e. PLN 3,155.40;
  • value of the social contribution with the voluntary sickness contribution - PLN 998.37,
  • the value of the health insurance premium - 9% of the calculation basis for health insurance - PLN 381.81
  • Labor Fund - PLN 77.31.

The sum is PLN 647.59

The sum is PLN 1,457.49

In connection with the above, it should be stated that the preferential ZUS payable by entrepreneurs in the initial period of running a business is much lower than the standard one. However, this period does not last forever - after two years the preference ceases to apply. After a period of preferences, the entrepreneur may switch to the so-called large ZUS or if it meets the relevant conditions, it can take advantage of the small ZUS Plus relief, i.e. the so-called contributions from income.

Preferential ZUS - the period of the relief

As a rule, the preferential period for entrepreneurs is valid for the full 24 months of running a business. It is important to accurately determine the end of this period and to pay the new premiums on time.

Example 1.

Mr. Mariusz set up a business on November 1, 2019. From the first day of starting the business, he wants to pay preferential ZUS contributions in order to be covered by social insurance. In this case, Mr. Mariusz will have to pay the first premiums in the standard amount only for November 2021 - payable until December 10, if he does not pay contributions for other insured persons. In practice, this means that the relief will apply until October 31, 2021, and the re-registration deadline will be November 1, 2021.

In a situation where the first month of operating is incomplete (e.g. from November 14), then it is also entitled to premiums in the preferential amount. The entrepreneur then pays partial social contributions in proportion to the number of days of running a business in a given month and the full health insurance contribution. However, in this case, the period of 24 months is counted from the month following the commencement of operations or the end of the start-up relief.

Example 2.

Mr. Dariusz joined the preferential ZUS on November 14, 2019. For November 2019, he paid social contributions in a preferential amount (proportionally for 17 days of running a business), however, the period of preferences is counted from the next month, i.e. from December 1, 2019. Therefore, the first premiums in the standard amount will be paid by Mr. Dariusz only after the end of 24 full months - for December 2021 - payable by 10 January. This means that the relief will apply to him until November 31, 2021, and he will have to re-register for new contributions by December 1, 2021.

If the entrepreneur takes advantage of the loss relief, then after 6 months of paying only the health insurance premium, he may register for the preferential ZUS.

Example 3.

Ms Joanna set up a business on September 6, 2019 and joined the start-up tax relief. She will pay the health insurance contribution for the months from September 2019 to March 2020 - the first full month of running the business was October 2019 and the 6-month discount is calculated from it. This means that on April 1, 2020, it should be re-registered to preferential contributions, which it will pay until the end of March 2022. Start a free 30-day trial period with no strings attached!

End of ZUS contribution preferences - formalities

Correct determination of the duration of ZUS preferences is necessary due to the amount of fees to be paid for social contributions and the formalities to be observed. Within seven days from the date of termination of preferential social contributions, the entrepreneur is obliged to register with the Social Insurance Institution (ZUS).

The contribution payer should first submit the ZUS ZWUA form in order to deregister from the previous insurance title code. In the ZUS ZWUA declaration, the code 600 should be entered as the reason for de-registration - another reason for de-registration.

Then he must re-register for social insurance on the ZUS ZUA form (or only for health insurance at ZUS ZZA) with the appropriate insurance title code for large ZUS (05 10 XX) or if he meets the conditions for small ZUS Plus (contributions from income - 05 90 or 05 92 XX).

After the end of the month in which the new contributions came into force, the entrepreneur is obliged to submit the first ZUS DRA declaration with the amount of paid social and health insurance contributions.