Allowed to use the Little ZUS in the existing formula should report their willingness to use this relief to 8 January 2020. Then - from 1 February - will be able to pay contributions under the Small ZUS Plus, which will enter into force that day.
- Around 320,000 the smallest entrepreneurs from 1 February 2020 will be able to use the so-called Small ZUS Plus;
- their contributions will be calculated in proportion to income and will be reduced on average by several hundred zlotys per month;
- is a solution for the smallest companies whose income in 2019 will close in amount 120,000 PLN;
- the estimated cost of new regulations for public finances is approx. 1.3 to ok. 1,500,000,000 PLN in subsequent years, that will remain in the pockets of entrepreneurs;
- The desire to use the Little ZUS Plus will be available until the end of February – such will be the effects of the bill, which the Sejm passed on Thursday evening. The amendment of the Act on the Social Security System and the Act on National Tax Administration prepared the MR in cooperation with the Social Security Office and the relevant ministries.
- The Sejm's decision is good information for the smallest entrepreneurs. Thanks to the extension of the existing Little ZUS, each month they will save on average several hundred zlotys. For example, an entrepreneur whose average monthly income in 2019 was 2,800 PLN, next year he will pay for social security 442.96 PLN monthly plus mandatory health insurance. Its benefit over the full contribution of ZUS in 2020, without health insurance, it will therefore be 549.34 PLN – This is Minister Jadwiga Emilewicz.
I emphasises: – This law is a implementation one from the so-called Five points to 100 The days we presented in the election campaign. Thanks to it, the smallest entrepreneurs will be able to use the money saved for investments, development of their companies or consumption. Their disposable income will also increase. All this will have a positive impact on consumer and investment demand, as well as professional activity in our country.
In turn Deputy Minister Marek Niedużak points out: – Since our proposal will significantly relieve the smallest entrepreneurs, we expect to increase the survival of the smallest companies, for which the moment of transition to full premium has been critical.
He points out at the same time: – Our project maintains mechanisms that allow beneficiaries of the relief to earn the internship required for retirement. However, entrepreneurs must bear in mind that paying lower contributions will translate into lower pensions and other benefits from the Social Security Office in the future.
How is it now?
Currently – from 1 January this year – the so-called Little ZUS applies. Businesses whose average monthly income in 2018 did not exceed 2.5-times the minimum wage, i.e. 63,000 PLN A year. In their case, social security contributions shall be calculated in proportion to the revenue. According to the data of the Social Insurance Institution, since the beginning of the law, the desire to benefit from the new relief has reported more than 186,000 people.
However, business representatives suggested expanding the group of beneficiaries of this solution. They also requested that contributions be linked to income, which better than income reflects the actual financial situation of the entrepreneur.
The small ZUS Plus will reduce contributions to those who already use the Little ZUS, as well as expand the group of entrepreneurs who will be able to pay lower contributions.
Conditions for using the Small ZUS Plus
- In order to benefit from the Small ZUS Plus, in addition to meeting the income criterion, i.e. not exceeding the annual revenue of 120,000 PLN, will also have to operate in the previous year for at least 60 days.
- In addition, the reduction in premiums will not benefit entrepreneurs who accounted for the previous year in the form of a tax card and at the same time benefited from VAT exemption.
- In addition to the current obligation for the entrepreneur to provide information on the annual income for the conduct of non-agricultural business and on the basis of the contribution assessment, he should provide data on income and forms of taxation. This additional information will be submitted by the entrepreneur, as yet, either in the first month report or in the settlement declaration. This will therefore not require any additional new forms or printing.
- In addition, the reduced contribution can be paid up to the maximum by 36 months (3 years) in subsequent years 60 months (5 (years) operating. The idea is that entrepreneurs should have a chance to accumulate the internship needed to receive retirement.
- The solution will not be available to entrepreneurs who carry out activities for their former employers. The aim is to prevent the phenomenon of "pulling" workers out of self-employment.
- As a general rule, the desire to use the Small ZUS Plus will be up to date first the month of application of this regulation and in subsequent years until the end of January.
- The sequence of benefits for social security contributions will not change: first, it “relieves start”, then 24 months of preferential contributions followed by Small ZUS Plus.
Complementary system
Small ZUS Plus is another change in law that can be classified as a pro-entrepreneurship facilitation introduced recently. Importantly, this is a complementary change to other new regulations.
Why? If the entrepreneur starts business and his monthly income is lower than half of the lowest national salary (now 1,125 PLN), it does not have to register its activities at all. If he gets better, he has to start a company, but he can benefit from the so-called start-up allowance, i.e. he will be exempt from social contributions for six months after registration.
Later, by another two years, the same entrepreneur will be able to benefit from a preferential contribution, which next year will 780 PLN. After this time he will be able to use the amenities of the Small ZUS Plus if he meets the criteria provided for by the Act).