Can the arrears in ZUS be divided into installments?

Due to temporary economic difficulties, the ZUS contribution payer has the option to apply for the payment of arrears into installments. For this purpose, it is first of all necessary for the debtor to submit an application in which he will take into account the proposed repayment of the liability. In response, ZUS may consent to the repayment in individual tranches, specifying their repayment schedule. Read the article and learn more about how to properly spread the arrears in ZUS into installments!

Arrears in ZUS and spreading it into installments and benefits

Due contributions, which ZUS agrees to divide into installments, will not be charged interest for late payment. The cost of repayment of the liability will not increase directly with the protracted repayment date. Of course, interest will not be charged only if the entrepreneur complies with the installment schedule specified by ZUS. By obtaining the consent for the installment repayment of the debt, the entrepreneur will not be exposed to the enforcement of the debt.

Can all arrears with ZUS be divided into installments?

If the entrepreneur pays contributions solely for himself, the entire outstanding contributions (social, health, labor and bridging pension funds) may be divided into installments. If the company employs employees, the following contributions are paid in installments:

• social insurance - excluding amounts corresponding to the amount of the pension insurance contribution for employed employees or other insured persons who are not payers of own insurance contributions (e.g. contractors, payers).

The interest for late payment, calculated by the date of submitting the application, together with any additional fee and costs of the reminder, will also be spread over installments.

What conditions must the payer meet in order for the arrears in ZUS to be divided into installments?

First of all, it is necessary to submit the application informing the Social Insurance Institution about the need to spread overdue payments for overdue contributions. The payer must also indicate what kind of assistance he wants to use in connection with the deferred payment date, whether it will be:

• de minimis aid, or

• individual aid intended for restructuring, or

• individual aid to make good the damage caused by natural disasters or other exceptional occurrences.

The entrepreneur's application should include a justification for what reasons it would be helpful to postpone the payment. It should also specify the proposed repayment period (number of installments) or the amount of the monthly installment amount. When determining the initial schedule, the entrepreneur should bear in mind that although no interest is charged after receiving the consent for the installment repayment of overdue contributions, the so-called extension fee.

The entrepreneur attaches to the application documentation confirming the legitimacy of granting the tax relief, as well as documents confirming the actual payment capacity of the entrepreneur and the financial condition of the enterprise. Documents should be presented as originals. Copies may also be submitted, however, it is necessary to present the originals so that the ZUS employee can certify compliance with the original.

Examples of documents that may be attached to the application are:

• Entry into the business register,

• Decision on deletion from the business register in the event of termination of business activity,

• Declaration on the timeliness of payment of fees by buyers,

• Statement on the estimated value of corporate liabilities,

• Tax declarations (final for the previous year and advance tax returns for the current year),

• Certificate from the tax office about the non-arrears or arrears with taxes,

• Schedules for the repayment of a bank loan or debts owed to other entities, e.g. to the tax office,

• All documents relating to current expenses, such as drug and medical expenses.

An additional condition for receiving approval for the payment of arrears with ZUS in subsequent installments is the payment of obligatory contributions for employees - those that are not subject to payment in installments.

How to file a claim for arrears at ZUS?

The entrepreneur may submit a written application in person at the facility or by post. The application for payment of the arrears with ZUS into installments can also be sent electronically via the Electronic Inquiry Office or the ePUAP platform, however electronic sending requires a qualified electronic signature or having a trusted profile.

Arrears with ZUS and the deadline for examining the application

The application is considered within 14 days from the date of completing the documentation necessary to consider the case and no later than within two months from the date of receipt of the application. If ZUS issues a positive answer, a civil law contract is signed with the entrepreneur, which specifies, inter alia, debt repayment schedule for contributions.

The company's financial situation and contract change

If, during the term of the contract, the company's financial situation changes, the entrepreneur has the right to apply for a change in the terms of the contract regarding:

• changes in the payment date of installments or their amount;

• shortening or extending the repayment period.

The change of conditions is recognized with the consent of ZUS in the annex to the original contract.

An entrepreneur who finds himself in a difficult financial situation and is in arrears with payments for ZUS contributions, may therefore apply for the debt to be spread in installments. However, it must remember that when it employs employees, not all contributions are spread out on time. When signing an agreement with ZUS, one should also bear in mind that the current contributions, which are not covered by the installment agreement, must be paid by the entrepreneur within the statutory period.

How to settle penalty interest for arrears in ZUS?

If the entrepreneur does not pay ZUS contributions on time, he must also take into account the addition of interest to penalty contributions. This issue is regulated by Art. 51 par. 1 of the Tax Code. Therefore, when we pay the arrears with ZUS, according to the schedule, part of the amount paid is overdue contributions, and the other part is penalty interest. Unfortunately, the entrepreneur cannot include criminal interest as tax deductible costs, as indicated in Art. 23 sec. 1 point 18 of the PIT Act: The tax deductible costs for late payment of late payment of budget receivables and other receivables, to which the provisions of the Act of August 29, 1997 - Tax Ordinance apply.

As a result, the amount of penalty interest cannot be included in expenditure in the KPiR.