Entrepreneurs who wish to benefit from the changes introduced by the amendment to the Social Security Act should hurry to apply for relief. The intention to use the “Small ZUS Plus” will have to be reported by the end of February, and the deadline for submitting a willingness to benefit from the relief in its current form will expire on 8 January 2020
On 18 December 2019 the senate adopted a bill amending the Act on the Social Security System and the Act on National Public Administration, which introduces the so-called "Little ZUS Plus". Senators accepted the amendment 97 by votes in favour and did not amend the bill.
This means that the amendment will then be handed over to the President who will have 21 days to sign it. The Act amends the current conditions of use of the so-called "Little Social Security" and aims to expand the scope of the solutions developed as part of this relief among entrepreneurs.
After the amendment, the right to benefit from a reduced social security contribution will be granted to persons whose income from non-agricultural business activity in the previous calendar year was not higher than 120,000 PLN, if the activity has been carried out throughout the year
New Year – new rules
Until now, those entrepreneurs who achieved income below the level were entitled to use the Small ZUS 30-times the minimum wage in December of the previous year.
After the amendment, the right to benefit from a reduced social security contribution will be granted to persons whose income from non-agricultural business activity in the previous calendar year was not higher than 120,000 PLN, if the activity has been carried out throughout the year.
In the case of activities less than one year, the limit shall be adjusted accordingly to the actual number of days of activity. The amount of contributions under the Small Social Security Fund will be proportionally dependent on income. The contribution dimension will be determined on the basis of a fixed coefficient and formula.
Little ZUS Not for All
The new solution will not be available to entrepreneurs who carry out activities for former employers. The legislator seeks to prevent employers from exerting pressure on their employees to move from a job to an economic activity in order to obtain economic benefits from the employer.
Businesses who accounted for the previous year in the form of a tax card and at the same time benefit from VAT exemption are also excluded from the benefit of the benefit.
It should also be remembered that the reduced contribution will only be used by 36 months (3 years) in subsequent years 60 months (5 years) operating.
The authors of the draft amendment stress that from the data of the Social Insurance Institution it is clear that since the beginning of the law 186,000 The smallest entrepreneurs have reported their willingness to benefit from the new relief.
The legislators see this as a success indicating a great interest in such relief from those engaged in economic activity. The Ministry of Finance estimates that the proposed change may include ok. 320,000 the smallest entrepreneurs.
Author: Michał Skwarek - Council applicant in the legal department Russell Bedford Poland. Graduated from the Faculty of Law and Administration of the University of Warsaw.