We include contributions to the Social Insurance Institution (ZUS) as costs, but only after they are paid

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Recognition of social security contributions as tax deductible costs depends on the date of their payment.

Pursuant to Art. 22 sec. 6bb of the Personal Income Tax Act (hereinafter the updof), contributions to the Social Insurance Institution (ZUS) in the part financed by the contribution payer, contributions to the Labor Fund and the Guaranteed Employee Benefits Fund, constitute tax deductible costs in the month for which they are due, provided that the contributions are paid :

  • due to payments paid or made available in the month for which they are due - within the time limit resulting from separate regulations;
  • due to receivables paid or made available in the next month, within the time limit resulting from the provisions of labor law, contract or other legal relationship between the parties - no later than by the 15th day of that month.

In the event of failure to meet these deadlines, Art. 23 sec. 1 point 55a updof. Namely, unpaid contributions to the Social Insurance Institution (ZUS) in the part financed by the payer of these contributions are not considered tax deductible. They can be classified as tax costs only on the date of their actual payment.

Example 1.

The taxpayer employs employees and pays remuneration, in accordance with employment contracts, for a given month on the last working day: January 31. If ZUS contributions are paid by February 15th, they will be the cost of January. If, on the other hand, their payment is made on February 16, they will be at the expense of February.

If, according to the employment contracts, the remuneration is paid on February 10 for January, the statutory deadline for the payment of ZUS contributions is March 15. If the taxpayer pays the contributions before the February 15th deadline, they will be charged on January. If, on the other hand, they are paid on March 15, they will be considered an expense on the date they are paid, i.e. in March.

However, if the employer is late with the payment of remuneration, e.g. until February 11, then he will not automatically be entitled to credit the contributions paid on February 15 until January - this deadline will be moved to February.