Jak rozliczać podatki za pracownika
If you are an entrepreneur and you want to recruit staff, as soon as you do it you become liable to pay tax. What does this mean? You will be obliged to calculate and set off the advance payment paid to the employee income tax on salaries and pay it to the tax authority within a specified period of time. Below you can find out how to do it.
What to do before you start to settle taxes for employee?
Designating a person responsible for the calculation and timely payment of the tax and registration to the tax office
If you do not want to do the calculation, collection and payment to the tax office of advance payment of income tax on employees, you should designate a person who will do this. This person (his/her name and address) should be notified to your tax office within the time limit set for the first payment (i.e. up to the 20th day of the next month following the month in which the payment of remuneration was made to the employee). Failure to notify such a person is tax offence and runs the risk of a fine. In the event of a change of the person designated to , you must notify this change within 14 days from the date on which the person was designated.
Carrying out an individual employee income (nominative) card
If you are in business as a natural person and you are keep tax revenues and expense ledger, you settle the income tax in the form of a lump sum on registered income tax or in the form of a tax card, you are obliged to conduct an individual (personal) earnings of workers to whom you pay claims arising out of an employment relationship.
Revenue card shall contain at least the following data:
1) the name and surname of the employee and his NIP or PESEL number
2) the month in which the payment was made (the implementing regulation does not provide for this element in case of lump sum tax on registered income and tax card, ),
3) the sum of the gross income obtained in a given month (in cash and in kind),
4) tax deductible costs
5) social security contributions deducted by the payer in a given month (old-age, disability and sickness),
6) the basis for calculating income tax in the month concerned,
7) income incrementally from the beginning of the year,
8) the amount of advance income tax payment, calculated in accordance with the provisions of personal income tax act,
9) compulsory health insurance contribution
10) the amount of the advance income tax payment,
11) the date on which an advance payment was transferred to the account of the tax office.
Card holder's revenue employee allows you inter alia to properly fulfilling the payer's personal income tax obligations (establishing the transferred to the tax office a monthly advance income tax payment, drawing up of an employee information PIT-11). The ..... should state pay income and other income from employment, which w paid to the employee in the month in question.
Staff card revenue for the month in question must be completed at the latest by the date laid down for the transfer by you (as a payer), withholding tax to the account of the tax office workers, i.e. by the 20th day of the following month following the month in which the payment was made.
Revenue card can also be kept in electronic form — in this case, at the end of each month (but not later than the 20th of each month for the previous month) you must draw up printed entries for the month in question.
If you pay income tax in the form of a tax card (except if your business is running the car park) and you employ workers — you are also obliged to keep book records of employment. It should have all the pages numbered and contain the following details:
1) the entry number,
2) the name and surname of the person employed,
3) PESEL number of an employee
4) NIP number of person employed (if has one),
5) the start and the end date of that person's employment,
6) endorsements on interruptions in employment.
The entry concerning the person's employment should be made not later than before the commencement of that person's employment.
Determination of income from an employment relationship
In order to correctly calculate the tax (advance payments) and it must be determined first of all, employee of the income earned in a given month.
Income from an employment relationship are any kind of payment of cash and benefits in kind or their equivalent, irrelevant of the source of financing of these payments and benefits. In particular these concern:
- basic wages,
- overtime supplement
- different types of allowances, prizes,
- equivalents for leave not taken and any other amounts, regardless of whether their amount was fixed in advance
- cash benefits for employees
- the value of other free benefits or benefits reduced.
Note that any transfer of the assets, including benefits in kind obtained free of charge by the employee in connection with work constitutes income from an employment relationship. In determining income, it is irrelevant whether the source of finance is working capital of employer or funds of Staff Funds Benefits Consequently, the income from an employment relationship, inter alia, are also received from the employer, such as: allowances, payment for the period of incapacity for work as a result of sickness up to a total of 33 days during a calendar year, free of charge use of the company car for private use, retirement benefit, holiday benefits, etc.
How to establish the value of benefits
As a general rule, the monetary value of benefits in kind and other free benefits shall be determined on the basis of market prices. However, there are exceptions to this rule, worth bearing in mind. Thus, the most frequently encountered unpaid use by an employee of a company car for private purposes set out in the legislation that the value of such benefit is PLN 250 per month for cars with an engine capacity of up to 1 600 cm³ and 400 PLN for cars with an engine capacity of more than 1 600 cm³.
Where the benefits are partially paid for, the employee income is the difference between those benefits and payment payable by the employee. The concept of free allowances was, however, not specified in the tax regulations. In this respect, it seems appropriate to use the case-law of administrative courts and the Constitutional Court. In particular, attention should be drawn to the ruling of the Constitutional Court of 8 July 2014, ref. K 7/13. If there are doubts, reference can be made to the rulings issued.
Income from an employment relationship arises during that month, in which the salary is actually paid or placed at the disposal of the worker, that is to say, where you make a transfer to the bank account of the worker - this revenue shall arise on the date of the transfer.
Example: Jan Kowalski worker of XYZ company in January 2017 received remuneration amounting to PLN 8000 and ash bonuse of PLN 800. At the same time, the employer has made available to him for the private use a company car with a capacity of 1 400 cm³ and gave access card to the sports facilities purchased by the employer for an amount of PLN 200 net. Jan Kowalski in accordance with the rules on the use of access cards for sports facilities has paid employer for the right to use the card PLN 50.
Jan Kowalski in January 2017 reached revenues at a total of PLN 9200, of which:
monetary income from an employment relationship (salary + bonus) - PLN 8.800
the provision for the use of a company car for private purposes with a value as defined in the legislation - PLN 250,
the supply for consideration in the form of a card (in part) — PLN 150 (the difference between the purchase price of the card by the employer and by the employee).
The calculation and collection from the employee's revenues of income tax advance payment of natural persons
As a taxpayer you are required to calculate and collect from each type of income received by a member of staff (salaries, bonuses, in kind payment) advance payment on the income tax of natural persons. In order to determine the amount of the advance you must first establish the income of a worker and then the income that is deducted from the taxable amount, you should:
deducted by you in a given month from the employee's remuneration social security contributions,
costs of earning revenue (PLN 111,25 per month for a single employment relationship and the amount of PLN 139,06 per month for employees working outside the place of habitual residence).
You calculate tax at a rate of 18 % or 32 % (depending on the amount of income of the employee). Thus calculated tax advance you should reduce by the amount of tax of PLN 46,33 provided that:
employee income in 2017 does not exceed the amount of PLN 85.528 (corresponds to the upper limit of the first rate of tax scale),
the employee before the first payment in the tax year submits a declaration on PIT-2 form, in which he states that he has no other income from which the advance payment on the income tax of natural persons.
More on the calculation of advances in the article Cost of employment of the worker as an employee.
Payment to the tax authorities advance payment on the income tax of natural persons
As the payer you are obliged to pay the advance to the competent account of tax office by the 20th day of the month following that in which the payment of remuneration was made.
Example: Mr Nowak, established on 31 January 2017 took out from his bank account in the form of transfer salaries for staff employed in his undertaking for January 2017. Cnsequently the advance payment of income tax to the account of the tax office will have to be made by 20 February 2017.
Example: Jan Kowalski who conducts economic activity, on 1 February 2017, has its corporate bank account in the form of transfer salaries for staff employed by his undertaking for January 2017. Consequently the advance payment of income tax to the account of the tax office will have to be transposed by 20 March 2017.
Remember! For the timely payment of advance payments on the income tax of natural persons in respect of the remuneration paid to the employees or other revenues they receive from your company, you are responsible for with all of your assets. Non-performance or incorrect performance of these obligations is also a fiscal offence and may result in fine or even imprisonment.
Drawing up information concerning the income and collected income advance tax payments
Note! With regard to income earned as of 1 January 2017, you no longer need to prepare for your worker, at his request the annual calculation of tax (PIT-40). This obligation was repealed by the Act of 9 March 2017 on altering Personal Income Tax Act and the Fiscal Criminal Code. Now annual settlement of tax of inter alia persons working under a contract of employment shall be carried out by tax offices. PIT-12 and PIT-40 disappeared.
As a payer you are obliged to prepare and provide all workers with information on their income and collected advance tax payments (PIT-11).
The form and the instructions for its completion.
You should provide the completed PIT-11 form to an employee and the tax authority (which is competent according to his place of residence) no later than by the end of February of the year following the tax year. In the PIT-11 form also other income that the worker received from the employer on a basis other than the employment relationship - such as revenue from the activity performed personally (e.g. under a contract of mandate), subject to taxation according to general rules .
Apart from the PIT-11 tax return, you must submit to competent tax office no later than by 30 January of the year following the tax year PIT-4R - "Annual return on collected tax advance payments on the income tax". In PIT-4R the amount of outstanding advances on the income tax of natural persons is shown. This amount should correspond to the sum of the advances paid to the Tax Office. If the difference between the amount of tax paid and the amount of tax levied occured, you need to clarify the matter in their tax return. PIT-4R should be submitted only to your tax office. It should't be transmitted to the staff, whose advances are cleared. Only one PIT-4R return shall be drawn up irrespective of the number of employees, for which tax advances have been paid.
Remember! You draw up PIT 4R only if you employ workers (either under an employment contract or a civil-law contract), i.e. where you pay tax advances on account of tax from the income received by workers. You do not draw up this return if you pay tax advances only for yourself, i.e. where you settle your income tax.
The obligation to keep the documents related to tax collection
Please note that you are required to keep documents relating to collection of income tax before the expiry of the limitation period for obligation i.e. for a period of 5 years from the end of the calendar year in which the tax payment deadline has expired. This documentation for 2017 must be kept by the end of 2023.
Notwithstanding the obligations associated with the employment of workers, where you timely pay tax advances from their salaries, you are entitled to a remuneration of 0.3 % of the amount of the advance tax payment charged to the State budget. The amount of remuneration shall be deducted from the amount of tax advances collected by the payer. Remuneration for time for advance payments on the income tax of workers' income is reported in the annual PIT-4R return. This remuneration is considered to be income from non-agricultural economic activity.