Another mandate contract - how to pay for such a contract?

Service

A contract of mandate is one of the most common types of contract for the provision of services. In the current legal situation, there has been a change in the method of comparing the mandate contract in the event of concluding several such contracts with the same person, when there is a confluence of insurance titles. Does the next contract of mandate give rise to a social security obligation?

Another mandate contract and social security contributions

An amendment to the Act on the Social Insurance System has been in force since 1 January 2016, which introduced the principle of premiums on the order up to the minimum wage. Of course, the first mandate contract will still be covered by the insurance obligation. However, if the basis for the amount of contributions under this contract is lower than PLN 2,000 (i.e. the minimum wage in 2017), the next contract of mandate will also be subject to ZUS.

Example 1.

The person performs work under a mandate contract concluded with payer A. The contract specifies January 2, 2017 as the date of commencement of work. Then this person concluded a mandate contract with payer B.

The revenue obtained in January 2017 amounted to:

  • under a contract concluded with payer A - PLN 1,200,

  • under the contract concluded with payer B - PLN 900.

This person is compulsorily subject to social insurance in January 2017 for both titles. Even if the total income is more than the minimum wage.

Example 2.

The person performs work on the basis of a mandate contract concluded with payer A. The contract specifies January 2, 2017 as the date of commencement of work. Subsequently, this person concluded another mandate contract with payer B. The contract specifies January 3, 2017 as the date of commencement of work.

The revenue obtained in January 2017 amounted to:

  • under a contract concluded with payer A - PLN 2,200,

  • under the contract concluded with the payer B - PLN 1,500.

This person is compulsorily subject to retirement and disability insurance in January 2017 under the contract concluded with payer A. The contract concluded with payer B does not oblige these insurances, because the basis for the calculation of contributions under the contract concluded with payer A reaches the minimum wage. A health insurance premium is required for each contract.

Example 3.

The person performs work on the basis of a mandate contract concluded with payer A. The contract specifies January 2, 2017 as the date of commencement of work. Subsequently, this person concluded a mandate contract with payer B. The contract specified January 9, 2017 as the date of commencement of work. On January 16, 2017, this person concluded another mandate contract with payer C.

The revenue obtained in January 2017 amounted to:

  • under a contract concluded with payer A - PLN 1,000,

  • under a contract concluded with payer B - PLN 1,500,

  • under the contract concluded with the payer C - PLN 1,500.

This person is obligatorily subject to retirement and disability insurance in January 2017 under the contract concluded with payer A and under the contract concluded with payer B, because the basis for the assessment of contributions under the contract concluded with payer A does not reach the minimum wage. The contract concluded with payer C does not require these insurances, because the total basis of the amount of premiums under the contract concluded with payer A and the contract concluded with payer B reaches the minimum remuneration. A health insurance premium is required for each contract.

Attention!

When concluding another contract of mandate, where at least the minimum wage is achieved for each of these contracts, compulsory retirement and disability pension insurance is under the contract that was concluded at the earliest.

Previously, a person working on the basis of several mandate contracts was compulsorily covered by retirement and disability pension insurance in this respect, which was established the earliest. However, it could voluntarily, at its request, be covered by retirement and disability pension insurance from other, all or selected titles or change the insurance title. As a rule, the contractor chose the contract with the lowest basis for assessing contributions, paying lower ZUS contributions to avoid costs.

Currently, the most problematic in settling orders are those who employ persons who simultaneously perform a contract of mandate in another company. From January 2016, if the contractor has several payers, as a rule, each of them should pay a premium. Only the contractor who presents the payer with documents showing that he does not have to pay contributions under this contract will be exempt from the compulsory contribution.

Another contract of mandate and the obligation to pay health insurance premiums

Unlike social security contributions, the health insurance contribution has to be paid for each mandate contract, regardless of the amount of remuneration.

If, under one of the entitlements to be covered by the health insurance obligation, the insured person obtains more than one income, the health insurance premium is paid separately for each of the earned income.

Attention!

When we have compulsory pension and disability insurance, sickness insurance is voluntary.

On the other hand, when we only have compulsory health insurance, retirement and disability insurance is voluntary.