How to obtain funding for a school starter kit for employees' children
Each employer can take care of their employees in different ways. One of the ways is to subsidize the school starter kit for the children of the employees of the company. In this case, there are two options - using the resources of the Company Social Benefit Fund (ZFŚS) or - if there is no such thing - from the company's money. How should such support for employees be accounted for?
Co-financing of the school starter kit from the Social Fund
If a given entrepreneur has a ZFŚS, then he may transfer funds for the purchase of a layette (in whole or in part) or the school layette itself, in accordance with its regulations. This means that the issue of the grant limit and its amount should depend on the financial situation (also in life and family) of the employee.
What does the issue of taxation of co-financing for the school starter kit for the employee's children look like? Well, according to Art. 21 sec. 1 point 67 of the Personal Income Tax Act, amounts or the value of a layette up to PLN 1,000 per year will be exempt from taxation.
The aforementioned amount applies to all benefits transferred from the Company Social Benefits Fund in a given year.
All benefits paid from the Social Fund are exempt from insurance premiums. This rule results from par. 2 clause 1 point 19 of the Regulation on the detailed rules for determining the basis for the calculation of contributions for retirement and disability insurance.
Importantly, co-financing a school starter kit for an employee's child may also consist in granting an allowance in connection with an individual random event or life disaster, long-term illness or death. In such a case, any amount is exempt from taxation if it is paid from the social fund, the company social benefit fund, from trade union funds or in accordance with separate regulations. Financing from other entities is exempt from taxation up to the amount not exceeding PLN 6,000 in the tax year.
Co-financing of the school starter kit from the company's current assets
Entrepreneurs who have not decided to establish a ZSŚS, may allocate part of the company's working capital for a school starter kit for employees' children. In this case, the subsidy should be treated as an additional non-wage element of remuneration, subject to taxation.
The value of such income from the subsidy received for the school starter kit, the employer adds the employee to the salary due to him in a given month from the employment relationship and from the total amount he is obliged to deduct, collect and pay an advance for income tax, in accordance with the rules for taxation of income from the employment relationship.
As far as ZUS contributions are concerned - such co-financing is not included in the calculation basis of social insurance contributions, if it results from collective labor agreements, remuneration regulations or provisions on remuneration. If, on the other hand, the co-financing of the school starter kit was not included in the above-mentioned regulations, then it is subject to contributions.