Preferential ZUS contributions - when do they end?

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Entrepreneurs setting up a business have the option of taking advantage of preferential ZUS contributions. This is one of the main reliefs for new entrepreneurs. Preferential ZUS contributions in 2021 will increase slightly. How long can you benefit from the contribution relief and how is it calculated? Can their amount change during the year? What formalities should be fulfilled when switching from preferential to standard contributions? You will find the answers to these questions in our article!

Comparison of the amount of ZUS contributions

Entrepreneurs setting up a business may benefit from preferential ZUS contributions for a maximum period of a full 24 months. After the end of this relief, they are obliged to pay contributions in the amount of at least the minimum, announced by the Social Insurance Institution.

Act of October 13, 1998 on the social insurance system
Art. 18a. 1. The basis for the calculation of contributions for the retirement and disability pension insurance of the insured referred to in Art. 8 sec. 6, paragraph 1, in the period of the first 24 calendar months from the date of commencement of economic activity, the declared amount, not lower, however, than 30% of the minimum wage.

The table shows a comparison of the contributions that are paid during the preferential period and after switching to a large ZUS.

Insurance

ZUS contributions under general rules 2021

Preferential ZUS 2021

social (with voluntary sick leave)

PLN 998.37

PLN 265.78

FP

PLN 77.31

 -

SUM

1075.68 PLN

PLN 265.78

Accordingly, after switching to a large ZUS, the entrepreneur will have to pay more by PLN 809.90 in 2021. The health contribution for both large ZUS and preferential ZUS is the same and in 2021 it amounts to PLN 381.81.

When do preferential ZUS contributions end?

Preferential ZUS lasts 24 full months. This means that if the entrepreneur started his activity on the first day of a given month, after 24 months he should start paying the "large Social Insurance Institution".

Example 1.

The activity started on 01/03/2019.

Preferential ZUS contributions will cease to apply on February 28, 2021. Therefore, the first contribution is payable on general terms for March 2021 (the payment deadline is April 10 - for entrepreneurs not employing employees).

Example 2.

The activity started on March 8, 2020.

Since the preferential ZUS contributions cover a full 24 months, if the activity was started during the month, the preferential ZUS will be in force until the end of March 2022. So in this case, the "large ZUS" entrepreneur is only valid in April (paid until May 10 - at entrepreneurs without employees). So if the 24-month period expires during a given month, the entrepreneur pays premiums for the entire month at preferential rates.

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What are the procedures for switching from preferential to essential rates?

The entrepreneurs should remember that after the end of the ZUS preferential period, there is a need to deregister with ZUS from the existing insurance code on the ZUS ZWUA form. The reason is code 600 - another reason for de-registration. After deregistration within 7 days from the beginning of the month in which full ZUS is in force, you must re-register (ZUS ZUA form) as entrepreneurs paying contributions on a standard basis. This is due to the change of the insurance code.

Preferential social security contributions and suspension of activity

Entrepreneurs who suspended their activity during the first 24 months of activity must remember that the period of suspension does not extend the period of preferential ZUS. The tax relief period is then 24 months, including the periods in which the activity was suspended.

Every person running a business who benefits from preferential ZUS should keep an eye on the 24-month deadline and after that, start the procedure of re-registration into full contributions. The Social Insurance Institution is not obliged to remind the entrepreneur about this.

Completion of the 2-year tax relief at wFirma.pl

In the wFirma.pl system, the end of the preference period can be settled. For this purpose, the entrepreneur should first deregister from preferential contributions, and then register to a small or large ZUS. After this is done, in SETTINGS »TAXES» ZUS, select the appropriate scheme of paid contributions, in this case "Contributions from income" or "Normal". Then the correct insurance title code will be automatically matched to the selection. Finally, click on SAVE.

Thanks to this, after adding the DRA declaration in START »ZUS» SETTLEMENT DECLARATIONS »ADD, contributions will be calculated in the appropriate amount of ZUS.

Declarations made in wFrima.pl can be sent directly to ZUS, thanks to the integration of both systems.