ZUS contributions are compulsory payments to the Social Insurance Institution (ZUS). They must be paid by every entrepreneur conducting business in Poland. These contributions cover various types of insurance, including pension, disability, health and accident insurance. In addition, not every entrepreneur is aware that once a year, if the relevant conditions are met, he or she may benefit from the so-called "social insurance". contributory holidays. Request for relief shall be lodged by the trader or the trader's authorised accounting office.
Contributory holidays - what they consist of
The entrepreneur may benefit from exemptions from payment of contributions from the activity performed for one month per year. The relief covers contributions to compulsory social insurance. These include pension, disability and accident insurance and voluntary sickness insurance, as well as contributions to the Labour Fund and the Solidarity Fund.
Accounting office recalls that the contribution holiday cannot be used as a relief for health insurance.
Other important rules to bear in mind if you are applying for a contribution holiday:
- The exemption applies to contributions determined on the lowest assessment base applicable to the entrepreneur.
- The 'holiday from paying contributions' can be taken for one month per year chosen by the entrepreneur.
- Covered contributions will be funded by the state budget and count towards a future pension.
- Use of contributory holidays does not require suspension of economic activity for the month covered.
Who can benefit from the relief - the accountancy firm explains
It is relief for entrepreneurswho are engaged in non-agricultural economic activity. They can take advantage of it if, in the month before submitting the application, they reported to social insurance or health insurance, no more than ten insured persons (including themselves). The limit also includes contractors (excluding students and pupils up to the age of 26) and co-operators. However, persons on parental leave, unpaid leave or receiving maternity benefit do not count.
Other conditions to be met:
- being subject for a minimum of one day (compulsorily or voluntarily) to pension, disability pension and accident insurance, on account of running a non-agricultural business activity, in the month preceding the month in which the application is submitted,
- no income from non-agricultural economic activity in the last two years before the year in which the application is submitted, or in at least one of the last two years preceding that year, such income did not exceed the PLN equivalent of EUR 2 million,
- not having carried out non-agricultural economic activities for a former employer as an insured person in the previous year and in the year in which the application is made.
Legal basis for exemption from payment of contributions
Contributory holidays are de minimis aid. In order to benefit from them, it is necessary to have an appropriate de minimis aid limit. It should not be less than the amount of social security contributions applicable to the entrepreneur, in a given calendar month, in respect of which he wants to obtain an exemption. Don't worry, the following can help in checking the amount of the limit professional accounting office. It's worth putting your finances in the hands of professionals who can help you get through all the paperwork. If you have any questions, we will be happy to answer them.
Accountancy firm explains how to apply for a contribution holiday
There is only one form of submission of an RWS application. This is done via the payer's profile on the Platform for Electronic Services (PUE). It must be submitted in the month preceding the month in which the entrepreneur wishes to be exempt from contributions.
You can submit the RWS application yourself or through a proxy. Do you want to ease the burden on your company's finances and benefit from a contribution holiday? At the same time, you do not want to face the formalities and filling in of documents? Contact our an experienced accountancy firm for companies.
