New rules for reducing contributions to PFRON - what do you need to know?
Employers who reach a certain level of employment, and do not employ an appropriate number of disabled people, are obliged to make contributions to the State Fund for Rehabilitation of Disabled People - PFRON. It is a big financial burden for them, therefore it may be easier to take advantage of the reliefs in payments to the fund. On October 1, 2018, the Act on amending the Act on Vocational and Social Rehabilitation and Employment of Disabled Persons and some other acts, adopted on May 10, 2018, entered into force, which changed the rules for employers to benefit from reliefs in contributions to PFRON. Read and find out what are the new rules for reducing contributions to PFRON!
What does the act introduced in October 2018 change?
After the entry into force of the Act, reliefs in contributions to PFRON may be granted by any employer who employs at least 25 full-time employees, including at least 30% of employees with a significant or moderate degree of disability - with a moderate degree of disability must be caused by a mental illness, mental retardation, developmental disorder, epilepsy, or be blind.
The employment rate of people with disabilities increases from 30% to 50%.
Contractors of such employers who have placed orders for goods or services and pay them on time, have the right to reduce their contributions to PFRON. However, the sum of the reduction may not exceed 50% of the amount due for payment to the fund in a given month. The unused amount of the reduction in payments may be used in the next six months from the date of obtaining information on the amount of the reduction.
The amount of the discount calculated by the seller cannot be higher than 50% of the net amount on the invoice documenting the purchase, taking into account correcting invoices. This is to prevent possible irregularities resulting from the correction of the purchase invoice and the related returns of goods for which discounts have already been issued.
New rules for reducing contributions to PFRON - how to calculate the amount of the reduction?
The method of calculating the amount of the reduction will not change. It is still the product of the wage ratio of people with severe or moderate disabilities and the revenue share ratio. However, the amendment limited the amount of reduction in contributions to PFRON to 50% of the amount due for the purchase of goods or services specified in the invoice, less the amount of tax on goods and services.
On October 1, 2018, the legislator introduced new rules for determining the employment status and the ratio in order to establish the right to be an entity authorized to issue information on a reduction in contributions to PFRON. Their calculation takes into account the employment status of employees for the month preceding the month of issuing the invoice documenting the purchase. The following persons should be excluded from the status of employees:
- on unpaid leaves
- on parental and childcare leaves
- employed under an employment contract for the purpose of vocational preparation
- not performing work due to military service or alternative service
- being participants of the Voluntary Labor Corps
- not providing work in connection with obtaining a rehabilitation benefit.
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However, the new rules for reducing contributions to PFRON are not everything. From October 1, the Act also introduces no obligation to issue information about the relief introduced in July 2016, on the INF-U form, to each buyer of services or goods. The company that grants discounts on PFRON contributions must now provide its contractors with information on the rules for purchasing and using reductions, and contractors are to reply within 7 days whether they want to take advantage of it. After receiving the contractor's declaration and after paying the invoice on time, the company granting the discount only issues a form with the amount of the reduction.
Who has to make contributions to PFRON?
All employers who employ at least 25 employees are obliged to pay the amounts to PFRON, if they do not achieve the employment rate of disabled people at the level of 6%. Pursuant to Art. 21 of the Act on Vocational and Social Rehabilitation and Employment of Disabled Persons, the employment status is determined for the entire month in full-time equivalents. You should add up the number of employees for each day of the month converted into full-time jobs, and then divide the result by the number of days in a month.
When calculating employment, you should take into account all calendar days in a month, not just working days.
However, some employers may be exempted from contributions to the fund after achieving a 2% employment rate for people with disabilities. These are:
public and private universities
public and private kindergartens and other forms of pre-school education, e.g. kindergarten points, children's clubs
care and educational facilities
care and therapeutic facilities
intervention pre-adoption centers
public and private nurseries.
When should payments to PFRON be made?
Payments are made by the 20th day of the month following the month in which the payment obligation arose - employment in full-time employment amounted to 25 people. The amount of payment is the product of 40.65% of the average remuneration and the number of employees converted into full-time work.
The method of calculating the contribution to PFRON can be presented as follows:
Contribution amount = 0.4065 x average salary x employment converted into full-time jobs x 0.06 - employment of people with disabilities converted into full-time jobs
This means that if the workplace has 30 full-time employees and there are no disabled people employed:
0.4065 x 4521.08 PLN is 1837.82
30 x 0.06 is 1.8
1837.82 x 1.8 is equal to 3308.08
That is, in the case of an employer employing 30 people per full-time equivalent, the payment to PFRON without concessions, which can be deducted by purchasing goods or services from companies offering them, i.e. those whose employment rate for disabled people is 50% and will amount to 3,308 08 zlotys.