Who is the person cooperating in the company and how to settle it?

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Entrepreneurs often use the help of their closest family as part of their business activities. Even if such cooperation is informal by contract, in accordance with the provisions of the Social Insurance Institution, such a person is treated as a cooperating person and is subject to insurance.

A cooperating person may be a spouse, children, children of the other spouse, adopted children, parents, stepmother or stepfather of the entrepreneur who stay with him in the common household and help in running the business. Importantly, the partners will not be the siblings of the company owner.

Depending on the terms on which the cooperation takes place, the entrepreneur will be obliged to pay ZUS contributions to ZUS for the person helping him from the family.

Cooperating person - ZUS

A cooperating person employed in the company under an employment contract is insured on the same terms as the company owner. This means that basic ZUS contributions are calculated and paid in the same way as in the case of an entrepreneur.

Importantly, a person cooperating is not subject to relief in the form of preferential ZUS contributions, which can be paid during the first two years of operation. The entrepreneur may pay such fees only for himself, while for a family member he will be obliged to pay normal contributions. The advantage, however, is that the mere employment of a cooperating person does not automatically deprive the entrepreneur of the right to a tax relief.

Insurance costs in the case of an employment contract with a cooperating person are borne in full by the owner of the company - the employed family member himself is not charged any fees for this.

On the other hand, an alternative to an employment contract is a mandate contract, which may also be concluded with a family member. In this case, contributions are calculated as for other employees. The basis for calculating the contribution is therefore the amount of the basic salary.

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Unpaid employment of a cooperating person

A family member who performs work in an activity without a contract, in accordance with the provisions, acts under the contract - it is the so-called implied contract. It assumes that a cooperating family member has agreed to orally assist the business owner as part of his business.

The lack of an agreement does not release the entrepreneur from paying ZUS contributions for the person cooperating with him. In this case, they should be calculated in the same way as the premiums of the owner of the company, of course taking into account the aforementioned exclusion from the possibility of using premiums in a preferential amount.

The exception in this case is the situation when a family member cooperating with the entrepreneur is employed under an employment contract in another company and receives at least the minimum wage, and the employer pays contributions to the Social Insurance Institution (ZUS) for the employee. Then the entrepreneur pays only the health insurance premium for the cooperating person.

Cooperating person - income tax

As a rule, the remuneration paid to employees constitutes a tax-deductible cost for the entrepreneur. However, in the case of a cooperating person, the situation is slightly different - in accordance with the provisions of the Income Tax Act, the tax cost is not considered to be the value of the taxpayer's own work, his spouse and minor children, and in the case of conducting business in the form of a civil partnership or commercial partnership - also spouses and minor children of partners.

At the same time, however, the remuneration of a cooperating person is subject to income tax on the same principles as the remuneration of other employees.

It is also worth paying attention to the situation in which the entrepreneur uses the help of a cooperating person as part of unpaid employment. In this case, his party will generate income from free benefits. However, this type of income is exempt from income tax.

Therefore, when deciding to cooperate with a family member in the same household as part of business activity, it is worth considering the most profitable form of this type of assistance. Even informal, unpaid work will not be neutral in the context of ZUS insurance.