Suspension of activity and calculation of ZUS contributions

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Entrepreneurs not employing employees have the right to suspend business activity. For a business suspension to be effective, the minimum suspension period must be 30 days and a maximum of 24 months. Suspension of activity and calculation of ZUS contributions - do you know what are the relationships between them? Check in the article!

Suspension of activity and calculation of ZUS contributions

An entrepreneur who decides to suspend business activity does not pay ZUS contributions for this period. In the event of a suspension of business activity during the month, contributions for social insurance and the Labor Fund are calculated in proportion to the period of conducting business activity.

Important!

The health insurance premium is indivisible and must be paid in full, even if the activity was conducted only for 1 day in a given month.

Considering the above, the best solution is to suspend the activity for a period of full calendar months, then the entrepreneur will not be obliged to pay the full health insurance premium for individual days of running a business.

Example 1

Suspension of activity and calculation of ZUS contributions - standard ZUS contributions

Mr. Artur has been running a sole proprietorship for 4 years. Due to the trip abroad, he decided to suspend his business activity for 3 months - from April 18, 2016 to July 17, 2016.

Social security contributions for individual months of suspension of activity should be calculated as follows:

April 2016

The contribution basis PLN 2,433 should be divided by the number of calendar days and then multiplied by the number of days of business activity in April 2016.

(PLN 2433/30 days) x 17 days = PLN 1,378.70 → basis for calculating social security contributions

The percentage of social insurance contributions amounts to 31.77% in total (pension 19.52%, disability pension 8%, sickness 2.45%, accident 1.80%), therefore the calculated base should be multiplied by this percentage.

PLN 1,378.70 x 31.77% = 438.01 → total social security contributions for April 2016

The health insurance premium is PLN 288.95, while the premium for The Labor Fund is PLN 33.78 (PLN 1,378.70 x 2.45%).

May 2016 and June 2016

Contributions for social insurance, health insurance and the Labor Fund amount to PLN 0.00 → suspension of business activity for full months.

July 2016

The contribution basis PLN 2,433 should be divided by the number of calendar days, and then multiplied by the number of days of business activity in July 2016.

(PLN 2433/31 days) x 14 days = PLN 1,098.77 → basis for calculating social security contributions

The percentage of contributions for social insurance amounts to 31.77% in total (pension 19.52%, disability pension 8%, sickness 2.45%, accident 1.80%), therefore the calculated base should be multiplied by this percentage.

PLN 1,098.77 x 31.77% = 349.08 → total social security contributions for April 2016

The health insurance premium is PLN 288.95, while the premium for The Labor Fund is PLN 26.92 (PLN 1,098.77 x 2.45%).

Suspension of activity and calculation of ZUS contributions - preferential contributions

In the case of paying preferential ZUS contributions, the calculation of the value of contributions is similar. It should be taken into account that the period of suspension of economic activity does not extend the period of 24 months for the possibility of being subject to preferential social security contributions. This period is counted from the moment of commencement of business activity and the period of suspension of activity is counted up to 24 months.

What documents must be submitted in order to suspend the activity?

In order to suspend business activity, the CEIDG-1 form should be submitted to the city or commune office. The entrepreneur is not required to submit a notification to ZUS, as the information from the Central Register of Economic Activity will be forwarded to ZUS. Based on this information, ZUS will create a document of de-registration from ZUS ZWUA insurance.

As you can see, the relationship between the suspension of activity and the calculation of ZUS contributions is quite large.