How to settle the entrepreneur's own contributions to the Labour Fund in taxes?
Contributions to the Labour Fund is mandatory for entrepreneurs conducting activity, if in respect of that activity they are liable to compulsory retirement and pension insurance and the basis of the insurance per month, is at least equal to the minimum wage or higher. If you do not use so-called small ZUS (read more), the amount of the base for the calculation of contributions shall be 60 % of the average projected monthly salary and is higher than the minimum wage. You should therefore pay contributions to the Labour Fund amounting to 2.45 % of this contribution base rate.
However, if you use small ZUS where the basis of assessment of contributions is 30 % of the minimum wage, you do not have to pay contributions to the Labour Fund as the basis is lower than the minimum wage.
There will also be no contributions to the Labour Fund, if at the same time you conduct activity and work and your wages from full time work are at least equivalent to the minimum wage. Learn more about the overlapping of insurance titles in the article Contributions payer to ZUS.
If you are over 60 years old you are exempt from contributions to the Labour Fund.
Settlement of contribution to Labour Fund in taxes
Tax provisions do not provide for deductibility of contributions to the Labour Fund from income or from tax for natural persons. You can only include this contribution as tax deductible costs. You cannot settle it if you use lump sum taxation or a tax card, as these taxes do not include the costs of obtaining revenue.
Contribution to the Labour Fund is the tax cost provided that it has been paid to the Social Insurance Institution.