Arrears in ZUS payable in installments - is it possible?
Entrepreneurs who have arrears with ZUS may apply for the debt to be spread in installments. In a situation where the difficult financial situation of the company does not allow the debt to be repaid on a one-off basis, the chance to avoid consequences in connection with the postponement of the repayment date is to apply to the Social Insurance Institution with a request to spread the liability into installments.
The benefits of spreading the arrears in ZUS into installments
The main benefit for the entrepreneur is lower debt servicing costs. If ZUS agrees to repayment in installments, the applicant will avoid charging additional late payment interest. The application should be submitted as soon as possible, because interest is suspended from the date of receipt of the application by ZUS.
The consent to spread the arrears into installments additionally means for the entrepreneur the suspension of the enforcement proceedings already conducted in relation to this debt. After the repayment in accordance with the agreement with the Social Insurance Institution, the enforcement proceedings will be discontinued.
What are the additional costs of such a solution?
Although ZUS undertakes not to charge interest on arrears, it applies the so-called extension fee. Importantly, it is lower by half than the statutory late payment interest.
Therefore, the business owner should remember about the additional fee when setting the repayment schedule.
The entrepreneur proposes the repayment schedule himself
The discussed spreading of arrears in ZUS into installments is possible only at the written request of the entrepreneur. This application should include information about the debt (title to the debt), its value and the period for which it was created. It is also necessary to indicate the reason for the discontinuation of the payment of receivables and the reason for the impossibility of one-off repayment of arrears (current financial situation).
In addition, the entrepreneur has the right to propose a debt repayment schedule. Thanks to this solution, he himself, after analyzing his situation, can determine the number and amount of installments and propose the date of their payment.
The application should additionally contain information about the type of public aid which the entrepreneur intends to use. The following should be included here:
- de minimis aid,
- individual aid for restructuring,
- individual aid to make good the damage caused by natural disasters or other exceptional occurrences.
It is preferable to attach documents confirming the company's financial situation and the history of using public aid in the attachments to the application.
Not every arrears can be divided into installments
In a situation where the entrepreneur does not employ employees and the arrears result from not paying ZUS contributions solely for himself, he may apply for the entire debt to be broken down into installments, provided that he pays the current contributions.
However, if the payer employs employees and the arrears also relate to non-payment of contributions for them, he will not be able to postpone the repayment date of the debt related to the pension contribution and the health contribution. These must be regulated in the first place. Their payment and the payment of current contributions will only allow the remaining debt to be broken down into subsequent installments.
How do I apply?
The entrepreneur may submit a written application in person at a ZUS office or by post. You can also use electronic shipping via the Electronic Registry Office or the ePUAP platform.
Waiting for a decision
The application is considered within 14 days from the date of completing the documentation necessary to consider the case. The decision is issued no later than two months from the date of receipt of the application. If ZUS issues a positive answer, a civil law contract is signed with the entrepreneur, which specifies, inter alia, debt repayment schedule for contributions. The entrepreneur is then obliged to strictly adhere to the deadlines set in the contract. In the event of a breach of the terms of the contract, it may be terminated, which means for the entrepreneur that he will be subject to enforcement recovery of unpaid receivables.