Which employee benefits can you count as costs?

As a rule, employee benefits are tax deductible. These include inter alia

  • wages and salaries for work performed,
  • remuneration for overtime, night work and statutory bonuses,
  • expenditure incurred to provide employees with protective clothing and working clothes, preventive and regenerative meals, glasses that correct eyesight,
  • compulsory medical examinations,
  • subsistence allowances and other business travel expenses (e. g. car maintenance expenses but also parking charges and motorway tolls during a business trip),
  • benefits granted to employees at the employer's discretion (e. g. awards),
  • incentive costs, e. g. non-compulsory medical services or sports activities for employees,
  • expenditure on the organisation of special and integration events,
  • expenditure relating to the provision of care for employees' children in company nurseries or kindergartens,
  • training of employees.

What services are not tax deductible costs for employees?

  • benefits paid out of the social benefits fund's resources (the cost being deductions from this fund),
  • staff members' expenditure on business trips by their own car if they exceed the amount set per kilometre of vehicle (see more on staff members' business travel costs),
  • one-off indemnities for accidents at work and occupational diseases in the amount determined by the competent minister and additional insurance contributions in case of evidence of deterioration of working conditions,
  • contributions in respect of staff insurance contracts concluded or renewed (with certain exceptions),
  • benefits, other receivables or social insurance benefits paid to a foreigner who during the period of work in the territory of the Republic of Poland did not have a valid document authorising him/her to stay in the territory of the Republic of Poland,
  • expenditure on company kindergartens, nurseries and children's clubs, if they exceed PLN 400 per month. (a crèche or children's club) or 200 (a kindergarten) per employee's child,
  • subsidies for kindergartens, nurseries and children's clubs for children of employees outside the workplace if they exceed PLN 400 per month. (a nursery or children's club) or PLN 200 (a kindergarten) per employee's child.

When are tax deductible costs accounted for?

Benefits paid to employees are tax deductible costs at the moment of payment. This is very important because in the event of default, these costs are tax deductible in the month in which they are realised. How does it look in practice?


Example 1
If, according to the employer's remuneration system, remunerations for a given month are paid by 28th of that month and the employer has paid the remunerations for January 2016 to employees on 28th January 2016, the employer shall classify them as tax deductible costs in January 2016.

Example 2
If, in accordance with the employer's remuneration system, the remuneration due for a given month is paid by the 10th of the following month and the remuneration for January 2016 is paid by the employer to employees on 10 February 2016, the employer shall classify it as tax deductible costs in January 2016.

Example 3
If, in accordance with the employer's remuneration system, the remuneration due for a given month is paid by the 10th of the following month and the remuneration for January 2016 is paid by the employer to the employees on 12 February 2016, the employer shall classify it as tax deductible costs in February 2016.

Example 4
If, in accordance with the employer's remuneration system, remunerations for a given month are paid by the 10th of the following month and the employer paid remuneration for January 2016 on 10 February 2016, while the contributions for these remunerations were paid on 15 March 2016, the remuneration should be included in the costs of January 2016, and the contributions paid into the costs of March 2016.

Example 5
If, in accordance with the employer's remuneration system, remunerations for a given month are paid by the 10th of the following month and the employer paid remuneration for January 2016 on 10 February 2016, while contributions for these remunerations were paid by 15 February 2016, the employer should include both the remunerations and contributions as tax deductible costs in January 2016.

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