Regular payment of Social Security contributions is the obligation of every entrepreneur. In practice, there are situations when, for various reasons, a person running a business is unable to pay their obligations to the Social Insurance Institution on time. In such cases, a solution that may help to maintain the company's liquidity and meet its payment obligations is the possibility of spreading the dues into instalments. You can prepare the application yourself or ask for help in this respect accounting office.
Spreading Social Security payments in instalments - when it's worth it
Payment of ZUS in instalments is beneficial in situations where the entrepreneur:
- has liquidity problems - e.g. as a result of seasonal fluctuations in income, late payments from contractors or unexpected expenses.
- wishes to avoid the accumulation of interest and penalties for late payment - ZUS shall charge interest for each day of delay in payment of contributionsand mounting arrears can lead to serious financial and legal consequences.
- wishes to avoid enforcement action - ZUS has the ability to enforce outstanding debts, which may include seizure of bank accounts or business assets.
It is also worth considering the use of services in accounting officewhich can help you manage your payments and avoid financial problems.
Conditions for obtaining permission to pay in instalments
Payment by instalments is a form of relief that the Social Insurance Company may grant for trader's request. The key conditions that ZUS takes into account when considering an application are:
- objective financial difficulties: the entrepreneur is required to demonstrate that his or her financial difficulties are real and prevent the payment of outstanding contributions at once.
- reliability of the payer: ZUS assesses whether the entrepreneur has so far met his/her obligations reliably. The absence of previous arrears may increase the chances of a successful application.
- repayment plan: the applicant must propose a realistic plan for repaying the debt by instalments, which is adapted to his or her financial capacity and guarantees that the instalment terms will be met.
- current receivables paid: a condition for the possibility of a successful application is the payment of all contributions due which are not covered by the application.
In addition, the entrepreneur must inform the tax office of his or her company account, which is important for the proper running of the business and compliance with legal requirements.
The accountancy office suggests - how to apply
An application for payment in instalments should be submitted to the relevant unit of the Social Insurance Institution. This can be done in person, by post or via the PUE ZUS platform (Platform for Electronic Services). It is also worth considering using online accountingwhich offers comprehensive accounting services and flexibility, making life easier for local entrepreneurs. The appropriate document to deal with this matter will be the RSR document ("Application for the instalment of dues") and additional attachments, which will vary depending on the form of business.
The application should include:
- Entrepreneur identification data (NIP, REGON, PESEL, etc.),
- A description of the financial situation justifying the difficulty of making a single repayment,
- Proposed repayment schedule,
- Documents proving financial difficulties (e.g. balance sheets, profit and loss accounts, bank statements).
Once the entrepreneur has submitted the application, the Social Security Institution analyses the entrepreneur's financial situation and then assesses the situation. At this stage, the institution may request additional documents or explanations. If ZUS considers that payment in instalments is well-founded, it issues a positive decision in which it specifies the repayment conditions - number of instalments, their amount and payment dates. It takes up to 2 months for the decision to be issued. In the event of a negative decision, the entrepreneur has the right to lodge an appeal. He has 7 days to do so.
Implementing an instalment contract - what to bear in mind
Upon approval ZUS on distribution of payments entrepreneur is obliged to pay the instalments on time according to the agreed schedule. It is important that each instalment is paid on time. Delay may result in the contract being terminated and the entire debt plus interest having to be paid once. In this context, it is worthwhile using the services of accounting officewhich will help manage payments and ensure compliance with formal requirements.
Benefits and risks to the contributory payer associated with installment payments
Payment by instalments avoids enforcement action by the Social Insurance Institution. The entrepreneur can spread the financial burden over a longer period, which makes it easier to manage the company's budget and ensure liquidity. Accountancy firms can also use this option to better manage their finances and support their clients.
The spreading of ZUS payments into instalments is a tool that helps entrepreneurs in difficult financial situations. It is important that the decision to use this option is well thought out and preceded by a sound analysis of the company's financial situation. Timely payment of instalments is crucial to avoid financial and legal problems. It is also worth remembering that the Social Insurance Institution assesses each case individually, which means that there is no guarantee of obtaining approval for payment in instalments - therefore, it is important to prepare an appropriate application and documentation. Our accountancy office will be happy to help you with this – contact us!
