How to apply for paternity leave for an entrepreneur?

Service

Paternity leave is an entitlement for working fathers, regulated by the provisions of the labor law. It can be used for up to two weeks, but until the insured child is 24 months old. This entitlement may be used in two parts, each of which may not be shorter than one week. Moreover, these parts need not be consecutive. What does an entrepreneur's paternity leave look like?

Entrepreneur's paternity leave - who can take advantage of it?

Both the employee and the entrepreneur are entitled to paternity leave. However, in the case of the latter, the procedure is more complicated and requires a few additional steps.

Attention!
If the insured father has adopted the child, he or she is also entitled to paternity leave, up to the 24th month from the date of the decision of the adoption court becoming final, but not longer than until the child reaches the age of 7.

In order for an entrepreneur to be able to use paternity leave, he must first of all be subject to voluntary sickness insurance and pay contributions on time. Only these two conditions, if met jointly, allow the use of the benefit.

Important!
It should be remembered that in the case of a self-employed person, non-payment of sickness contribution will result in the termination of the voluntary sickness insurance. In such a situation, an application should be submitted to the Social Insurance Institution in order to restore and recognize the continuity of this insurance.

Formalities

The entrepreneur must also apply for paternity leave, therefore the following documents must be submitted to ZUS:

  • abridged copy of the child's birth certificate (original),

  • completed ZUS Z-3b form,

  • application for paternity leave - ZAO form.

For the time of receiving maternity allowance, the entrepreneur must be subject only to health insurance. Therefore, he must remember about the obligation to deregister from social insurance during this period, so it is necessary to submit a ZUS ZWUA application. However, this is not the end - on the date of de-registration, you should also submit your health insurance application on the ZUS ZZA form.

Payment of the allowance by ZUS - what then?

After the leave ends, the person conducting the activity must first deregister from health insurance and re-register for social insurance.

On the other hand, when he receives an allowance, he may reduce social contributions and contributions to the Labor Fund and pay only for that part of the month during which he was not on paternity leave. The health insurance premium will be paid in full, as it is indivisible and should always be paid in a fixed amount.

Start a free 30-day trial period with no strings attached!

Example 1.

The entrepreneur's paternity leave lasts for 14 days in January (31 calendar days) of 2018, and pays contributions from the minimum basis of assessment (in 2018 it is PLN 2,665.80).

Social insurance contributions in 2018 for entrepreneurs amount to:

retirement pension - 520.36

disability pension - 213.26

sickness - 65.31

resultant - 47.98

Labor Fund - 65.31

Sum of contributions: 912,22 - this is how much an entrepreneur would pay for social contributions and FP for the entire month.

However, after using the 14-day leave, he will only pay contributions for 17 days (31 days - 14 days on paternity leave) according to the following action:

2665.80: 31 (number of calendar days in January) = 85.99 * 14 days (duration of paternity leave) = 1203.90

2665.80 - 1203.90 = 1461.90 - the basis of social contributions for the time of running a business in January

retirement pension - 285.36

disability pension - 116.95

sickness - 35.81

resultant - 26.31

Labor Fund - 35.81

912,22 - 500,24 = 411,98

So the entrepreneur will save on social contributions in this case 411,98.

Although the procedure for obtaining a benefit by an entrepreneur is more complicated than in the case of an employee, receiving a benefit brings significant financial benefits. The person running the business gains a double benefit, both by receiving the allowance and by taking advantage of the possibility of reducing social contributions in the month in which he was on paternity leave. However, he should remember that while on leave, he cannot perform the duties related to running a business, just as if he was on sick leave.