Amolition of social security contributions

Service

Pursuant to Art. 1 clause 4 and art. 2 clause 2 of the Act of November 9, 2012 on the cancellation of receivables arising from unpaid contributions by persons conducting non-agricultural activity, the so-called the abolition act expired on January 15, 2015. Who can be affected by the abolition of contributions? Until that date, applications for the cancellation of insurance contributions could be submitted.

Who else can benefit from the abolition act?

It is worth recalling that the abolition of contributions may take place in relation to persons who were obliged to pay social and health insurance contributions within the period specified in the above Act. The cancellation of insurance premiums concerned the period from January 1, 1999 to February 28, 2009. Therefore, payers covered by the compulsory retirement, disability and accident insurance in the indicated period for non-agricultural activity, who did not pay their own contributions, could apply for the write-off of the outstanding amounts .

In addition, the application for redemption may still be submitted by payers against whom ZUS has issued a decision on the amount of debt resulting from non-payment of insurance contributions.

Pursuant to Art. 2 of the above Act, a request for remission of receivables may also be submitted by an heir or a third party if, in terms of these liabilities, the Social Insurance Institution has issued a decision on their liability for the payer's liabilities due to unpaid contributions for his own insurance for the period indicated above. The application referred to above may be submitted within 24 months from the date of entry into force of this Act. If the above-mentioned decision is issued by the Social Insurance Institution after the date of entry into force of this Act, the heir or a third party may submit an application for redemption within 12 months from the date on which the decision becomes final, unless the deadline is longer (cf. Article 2 (2) and section 3 of the Amnesty Act).

What contributions and payments are amortized in accordance with the Abolition Act?

Pursuant to Art. 1 clause 10 of the above Act, the condition for the cancellation of receivables is that, as at the date of issuing the ZUS decision, you do not have:

  • contributions for social insurance, health insurance, Labor Fund, Guaranteed Employee Benefits Fund and the Bridging Pensions Fund, for the period from 1 January 1999, for the period from 1 January 1999, for which a person conducting non-agricultural activity or a contribution payer is obliged to pay, and

  • late payment interest due on the above premiums, extension fees, costs of reminder, additional fees, and

  • enforcement costs charged by the director of the branch of the Social Insurance Institution, the head of the tax office or the court bailiff.

The deadline for submitting an application for amnesty of ZUS contributions

It is worth adding that applications for the redemption of receivables based on the above act should be submitted within 24 months from the date of its entry into force, i.e. by January 15, 2015. If ZUS issued a decision on compulsory social insurance or on the amount of debt due to contributions for compulsory social insurance, this period was to be extended by another 12 months, should be counted from the date of the decision becoming final.

Pursuant to the Amnesty Act, one of the conditions for the redemption of receivables was the lack of unpaid payments for other contributions not covered by the Act or their possible settlement until 12 months from the issuance of the decision on redemption.

It is worth noting that if the decision on being subject to compulsory social insurance or the decision on the amount of debt due to compulsory social insurance contributions is issued by the Social Insurance Institution after the date of entry into force of this Act, the application for redemption may be submitted within 12 months from the date of the decision becoming final. , unless the time limit specified in sec. 4 is longer (cf. Article 1 (5) of the Amnesty Act).

ZUS may divide the debt into installments

It is worth noting that receivables that are not amortized may be divided into installments with a deferred payment date, then the length of their repayment period is irrelevant in accordance with the relief. The debt in the repayment of insurance premiums in installments allows you to settle overdue payments on the agreed date.

Pursuant to Art. 1 clause 12 of the abolition act, in the event that, within 12 months from the date of validation of the decision specifying the conditions for remission of receivables that are not subject to remission, are divided into installments, the date of their repayment is extended until the date of repayment of the last installment specified in the installment schedule.

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Thus, the installment arrangement regarding the repayment of receivables, proposed by ZUS, gives the payers of contributions the opportunity to free themselves from the debt.

Currently, premium payers who have managed to use the installment system established by the Social Insurance Institution (ZUS) repay the overdue insurance premiums in accordance with the installment schedule. It is worth adding that in the event that the payer is late with the payment of the installment, ZUS generally issues decisions refusing the cancellation of contributions. It is worth noting that the insured may appeal against the above decision, but if he proves that he paid the installments regularly and was late only a few times, the court may find the decision of the Social Insurance Institution refusing to redeem contributions to be unjustified and too bureaucratic (see the judgment of the District Court in Łódź of May 4, 2017, file reference number VIII U 2384/16).

Postponement of the payment date

It is worth recalling that for economic or other reasons that deserve consideration, the Social Insurance Institution may, at the request of the debtor, postpone the payment date of contributions and divide the amount into installments, taking into account the debtor's payment possibilities and the state of social security finances. The deferral of the payment date may only apply to the receivables financed by the contribution payer. The postponement of the payment date of contributions due to contributions and its distribution into installments takes place in the form of an agreement. No late payment interest is charged on contributions that have been broken down into installments, starting from the day following the date of receipt of the application for such relief (cf. Article 29 of the Act on the Social Insurance System).

Pursuant to Art. 28 of the Act on the Social Insurance System, contributions due to contributions may be remitted only in the event of their total failure to collect or due to a special family or health situation of the debtor.

It is worth mentioning that "the postponement of the payment of overdue social security contributions or the distribution of the amounts due in installments, takes the form of an agreement, against which the party cannot appeal to court" (decision of the Court of Appeal in Warsaw of March 26, 2003, ref. No. ., rev. III AUa 2016/2001).

Pursuant to Art. 28 sec. 3a of the Act on the social insurance system, receivables from social insurance contributions of the insured who are also payers of contributions for this insurance may, in justified cases, be canceled despite the fact that they are not completely uncollectible. The above was confirmed by the Supreme Administrative Court in Warsaw in the judgment of 26 September 2017, file number II GSK 2355/15, which held that "justified cases" are a premise for the cancellation of receivables.

Contribution abolition - documents to be submitted to ZUS

According to the information on the ZUS website, the following forms should be completed and submitted to the appropriate branch:

  • Debtor's application for remission - premium abolition,

  • Entrepreneur's declaration of not receiving de minimis state aid,

  • Statement containing the information necessary to determine the rating category.

In conclusion, it should be stated that currently the periods of repayment of non-redeemable receivables, divided into installments in accordance with the decision of the Social Insurance Institution (ZUS), are ending. It is worth recalling that due to a negative decision of the Social Insurance Institution (ZUS) refusing to redeem contributions, the payer may appeal to the Court. The Act of November 9, 2012 on the cancellation of receivables arising from unpaid contributions by persons conducting non-agricultural activity expired on January 15, 2015. Currently, work is underway on the development of a new abolition act, which should support indebted entrepreneurs.