Settlements with ZUS - the most important settlement dates
Business owners are required to pay ZUS contributions for themselves, and if they employ employees, also for them. The obligation to be subject to social insurance arises from the day of commencement of business activity. Only during the period of suspension of activity (the Entrepreneurs' Law) may the premium payment be simultaneously suspended. Check what contributions we pay as part of the settlement with ZUS!
What social insurance is a person running a business subject to?
From the date of commencement of business activity until the date of its cessation, the entrepreneur carrying out settlements with the Social Insurance Institution is subject to mandatory insurance:
- pension;
- disability pension;
- accident;
- health.
Voluntary insurance to which a person running a business may, but is not obliged to, is:
- medical insurance.
The period of voluntary insurance is counted from the date indicated in the application for application for insurance (ZUS ZUA form), but not earlier than from the date on which the application was submitted.
In addition, persons running a business, as part of settlements with ZUS, are required to pay contributions to the Labor Fund. However, this obligation will not apply to everyone. These contributions are paid when the amount of the basis for assessing contributions for retirement and disability insurance amounts, per month, to at least the minimum remuneration for work (in 2019 it is PLN 2,250). Additionally, people who are 55 (women) and 60 (men) years of age are exempt from the obligation to pay contributions to the Labor Fund.
How to pay contributions to ZUS - deadlines for settlements with ZUS?
A natural person, individually running a business, shows social security contributions in the monthly ZUS DRA settlement declaration. The declaration and the fee in the amount of the calculated contributions should be submitted by:
- On the 10th day of the month for the previous month, when no employees are employed in the activity, for which the entrepreneur is also obliged to pay contributions;
- On the 15th day of the month for the previous month, when employees subject to compulsory insurance are employed in the activity.
The current contribution basis for 2019 for people running non-agricultural business activity is an amount not lower than PLN 2,859.00, representing 60% of the forecast average monthly remuneration.
Therefore, the applicable percentage rates and minimum insurance premiums for 2019 are respectively:
| CONTRIBUTIONS | PERCENTAGE RATE | SUM |
|---|---|---|
| retirement | 19,52% | PLN 558.08 |
| disability | 8% | PLN 228.72 |
| sickness | 2,45% | PLN 70.05 |
| accident | 1,67% | PLN 44.52 |
| labor Fund | 2,45% | PLN 47.75 |
| health | 9% | PLN 342.32 |
In relation to voluntary sickness insurance, the regulations also set an upper limit, which cannot exceed 250% of the average monthly remuneration calculated for the previous quarter.
The basis for the health insurance contribution is the amount not lower than PLN 3,803.56 (75% of the average monthly salary in the enterprise sector - 75% x 5,071.41 = 3,803.56). Therefore, the health insurance premium in 2019 may not be lower than 342.32 zloty (9% of the basis of assessment).
ZUS settlements - preferential ZUS contributions
Some of the people starting a sole proprietorship may pay social security contributions in a lower amount than the generally applicable one. The longest period of using preferential contributions, amounting to at least 30% of the minimum remuneration for work, is 24 months from the date of commencement of business activity or the end of the start-up allowance. It is not extended by the period of suspension of activity.
The reliefs relating to settlements with the Social Insurance Institution are available to persons who conduct non-agricultural business activities, partners in civil partnerships and persons practicing a liberal profession who have been entered in the register of economic activities.
The condition is:
- failure to conduct non-agricultural activity by these persons within the last 60 calendar months prior to the commencement of activity;
- failure to perform activities for the benefit of a former employer for whom, prior to the commencement of business activity in the current or previous calendar year, persons who set up activities, performed activities falling within the scope of their economic activity under an employment relationship or a cooperative employment relationship.
If the entrepreneur uses preferential contributions for settlement with ZUS, he will take the amount of 30% of the minimum wage as the basis for calculating the retirement and disability insurance, as well as in the case of accident and sickness insurance.
Taking advantage of the relief also means that if the entrepreneur declares the lowest basis for the assessment of contributions, he will not pay the contribution to the Labor Fund. This is because the basis for calculating the contribution to compulsory retirement and disability pension insurance is lower than the minimum wage.
Relief for the start, i.e. health insurance contribution and settlements with ZUS
Article 18 of the Entrepreneurs' Law Act introduced in 2018 the possibility of taking advantage of the start-up relief. In order to be able to take advantage of the discount, you must meet the same conditions as for the preferential contributions. Thanks to the start relief, you have to pay social security contributions (retirement pension, disability pension, accident, sickness) for 6 months from starting your business. If you take advantage of the discount, you must register for health insurance and pay monthly premiums for this insurance (in 2019 it is PLN 342.32).
After the end of the start discount (after full 6 calendar months), you can take advantage of the preferential ZUS.
Settlements with ZUS in the case of contributions from income
From January 2019, another relief for entrepreneurs came into force, i.e. ZUS contributions on income.An entrepreneur who will be able to take advantage of this relief will have to independently determine the amount of contributions transferred to ZUS. In order to be able to pay lower premiums in 2019, certain conditions must be met:
- business income may not exceed PLN 63,000,
- must be in operation for at least 60 days in 2018.
Moreover, the relief will not be available to persons who:
- they carry out non-agricultural business activities for the former employer;
- entrepreneurs on a tax card, benefiting from VAT exemption;
- creators, artists, freelancers;
- persons running a public or private school or other form of pre-school education, an institution or their team;
- partner of a sole proprietorship limited liability company;
- partners of a general partnership, limited partnership, partnership.
