ZUS contributions in company costs
The obligation to pay social security contributions depends on the date when the salary is paid. If we want to include ZUS contributions as tax deductible costs, we must first pay them.
Pursuant to the PIT Act, social insurance contributions financed by the employer for receivables resulting from the employment relationship, as well as 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 they are paid. Tax deductible costs do not include social security contributions, FP and FGŚP if these receivables have not been settled.
Taxpayers who pay their social security contributions in a timely manner may apply the accrual method if they are recognized as tax deductible costs. It is important to determine whether we are dealing with the payment of remuneration for a given month in the same month, in the next month, or perhaps neither of these situations, because the date of payment of the remuneration affects the obligation to pay social security contributions. Accounting for ZUS contributions to costs on an accrual basis applies only to social security contributions paid on the basis of remuneration under the employment contract.
There are often situations in which entrepreneurs are late in paying social security contributions. Then you can include the outstanding contributions as tax costs, but on the date of their payment to the social insurance institution. The premiums actually paid are tax-deductible.
The reimbursement of overpaid social security contributions also has consequences in terms of income tax. In such a situation, we can distinguish two cases: the return of contributions in the part financed by the employees and the return of contributions in the part financed by the employer. The reimbursement of ZUS contributions in the part covered by the employee is made through the employer. Such a return is income for the employee from the employment relationship. In this case, the employer is obliged to add the refunded amount to the employee's other income in the month of its payment and to collect an advance on income tax. Reimbursement of social security contributions should be settled on an ongoing basis.