Settlement of overpaid ZUS contributions - how to do it?


A taxpayer who happens to pay more than necessary amount in respect of contributions to the Social Insurance Institution does not have to worry about the fact that his funds will be lost. According to Art. 24 sec. 6a of the Act on the Social Insurance System, the amount of unduly paid contributions is counted by the Institution towards current or overdue contributions, in the absence of them - towards future ones, and additionally, at the taxpayer's request, such sum may also be returned. Read the article below and find out what the settlement of overpaid ZUS contributions looks like.

What should the settlement of overpaid ZUS contributions look like?

To obtain a refund of contributions, the taxpayer should submit an appropriate application to ZUS. The plant should make a refund within 30 days, if this date is exceeded, interest will be added to the arrears. It is worth remembering that the possibility of recovering contributions is not indefinite - they are subject to limitation within 5 years.This period is counted either from the date on which the taxpayer received the notification from ZUS, or from the date of overpayment of contributions, if such notification was not sent.

Assuming that the taxpayer has managed to submit the application and received a refund of his overpaid funds within a specified period, it is necessary to consider what the settlement of overpaid ZUS contributions should look like.

Contributions expensed or deducted from income?

If the taxpayer has recognized the paid contributions as tax deductible costs, the recovered contributions will constitute income from business activity. In such a situation - in accordance with Art. 14 sec. 1 and the PIT Act, the income should be entered in accordance with the date of actual receipt of funds. Thus, the tax base will be increased, which will be taken into account when generating the income tax advance.

The second option is to deduct the overpaid amount from your income. In such a situation, in accordance with Art. 20 (1) of the PIT Act, these funds will be classified as other income. The taxpayer should take them into account when generating the annual declaration for the year in which he received a refund of paid benefits.

Settlement of overpaid ZUS contributions for an employee

When an entrepreneur hires employees, he deducts from their remuneration the amounts necessary to pay social security contributions, thus reducing taxable income.

If it happens that ZUS contributions are overpaid, deducted from the employee's remuneration, the obtained return will be an increase in income from the employment relationship. The settlement of overpaid ZUS contributions for an employee should be as follows: the funds received should therefore be added to the payment generated in the month of receipt of the return, and then taxed with income tax. This amount should be included in the PIT-11 issued at the end of the fiscal year.

In the event that the reimbursement concerns part of the contribution for retirement and disability insurance and accident insurance, which are covered by the employer, you should proceed in accordance with the information in the previous point - such an impact will be treated as income from business activity.