The end of small ZUS and the obligations on the part of the entrepreneur

Entrepreneurs starting a business have the option of paying lower preferential ZUS contributions for 24 months. What formalities is associated with the end of small ZUS?

Who is not entitled to a small ZUS?

Small ZUS is not available to entrepreneurs starting a business activity who:

• conduct or have conducted non-agricultural activity during the last 60 calendar months prior to the commencement of their activity,

• perform economic activity for the benefit of a former employer for whom, prior to the commencement of business activity in the current or previous calendar year, they performed activities related to the employment relationship or a cooperative employment relationship within the scope of their economic activity,

• are partners of general partnerships, limited partnerships and partnerships or are a partner in a one-person limited liability company,

• they are creators or artists.

The end of small ZUS and the activity started during the month

The end of small ZUS comes after 24 full months of running a business. Therefore, if the entrepreneur starts a business activity during the month, then 24 months should be counted only from the next month.

Example 1.

Ms Joanna starts running a business on June 2, 2016. For June 2016, she will pay ZUS contributions calculated in proportion to the period of her activity, she will pay the first full contributions for July 2016, i.e. the period of 24 months should be counted from July 2016. In this case The end of the small ZUS will take place at the end of June 2018. Joanna will have to pay the first large ZUS for July 2018.

If Ms Joanna started her business activity on June 1, 2016, then the first big ZUS would have to pay for June 2018.

What declarations should be submitted when small ZUS ends?

The end of small ZUS causes the obligation to submit to ZUS notification declarations and settlement declarations.

First, a declaration of de-registration from ZUS ZWUA insurance should be prepared with the code of the title of the insurance consistent with the code of the application for insurance, i.e. for small ZUS it is code 05 70 xx. For the de-enrollment reason code, specify 600 - other de-enrollment reason. The date of deregistration from the date is the first day of being subject to standard contributions, e.g. 1 July 2016.

Then, you need to prepare a declaration of application for ZUS ZUA insurance by registering for social and health insurance with the insurance title code 05 10 xx on the first day of being subject to standard contributions, e.g. on July 1, 2016.

Important! ZUS ZWUA and ZUS ZUA declarations must be submitted to ZUS within 7 days from the moment of the change, i.e. the loss of the right to pay preferential ZUS contributions

Even if the entrepreneur meets the conditions and benefits from the exemption from the obligation to submit settlement declarations to ZUS, he is obliged to submit to ZUS a ZUS DRA settlement declaration with a statement of contributions to a large ZUS. If the amount of contributions does not change in the following months, you can use the exemption again and not submit the declaration to ZUS.

The settlement declaration should be submitted to ZUS by the 10th day of the month following the month for which contributions are paid - if the entrepreneur pays contributions only for himself.

If the entrepreneur also pays contributions for employees, then he must submit to ZUS each settlement declaration by the 15th day of the month following the month for which contributions are paid.