Registration of payer and insured

Registration of payer and insured

Registration of economic activity involves a series of obligations. One of them is the payment of contributions for social and health insurance for yourself, as an entrepreneur and other persons assisting in the conduct of business.

Since you are an entrepreneur, you have an obligation to register insured persons to the Social Insurance Institution (ZUS).

The payer of the contributions is the person responsible for the calculation of the correct amount of the contributions and their payments to ZUS.

The insured is the person who benefits from the social security system. It is you as well as an entrepreneur and persons who help you to conduct business activity.

If you are an entrepreneur entered into CEIDG or a partner in a partnership (registered partnership, professional partnership or limited partnership), you have to submit a declaration for social insurance. The same obligation concerns the single shareholder of a limited liability company. You have to also register your employees.

To register yourself and your employees to Social Insurance Institution you have 7 days from the moment of registration of economic activity.

Companies registered in CEIDG and ZUS

When you register in CEIDG, owing to the so-called single window ZUS receives your data (as a contributions payer). You do not have to fill in and submit ZFA, ZBA and ZZA forms.

As a sole trader you act in a double role – you are the contributions payer and the insured. This means that in spite of the so-called single window, you must submit an application to ZUS ( as a payer you are obliged to register the insured, that is yourself).

You have 7 days from the date when the insurance obligation arises to submit a declaration of the insured (registering business, employment of worker or co-worker). The ZUS ZUA form is used to submit an application of the insured. 

If you are subject only to the health insurance, the notification to ZUS is made by lodging ZUS ZZA form (without completing ZUS ZUA)

The entrepreneur who starts non-agricultural economic activity and benefits from the preferential social contributions, the so-called small ZUS enters as a code of insurance 05 70. 

24 months after the start of the exercise of an economic activity (loss of right to preferential social contribution or the lack of such a right upon registration) the correct code is 05 10.

You should know that 24 months of 'small ZUS' mean full months. If you set up your company e.g. on the 2nd day of the month, you will pay 'small ZUS' for a month longer.

On the basis of Article 18a(1) and Article 8(6) of the Act on the social insurance system, members of a single-member limited liability company and partners of registered partnership, limited partnership or professional partnership may not take advantage of preferential rules for contributions payment (shareholders of the companies were listed in Article 8(6) point 4 of the Act). 

Find out how to register a foreign ZUS payer.

Registration in KRUS

If you register capital company in the National Court Register (e.g. a limited liability company with numerous shareholders) you should know that the data covered by an entry in the National Court Register (KRS) shall be forwarded automatically to the Central Register of Taxpayers (CRP-KEP) and the National Official Business Register in the national economy. the entities covered by the entry in KRS are obliged to submit to the competent tax office NIP-8 form (so-called supplementary data).  The data shall contain, inter alia:  short name of the payer of  contributions, the date of the commencement of the obligation to pay contributions, a list of bank accounts, business address. 

On the basis of basic and supplementary data ZUS will prepare application documents of the contributions payer:

  • ZUS ZPA  - Application /modification of the contribution payer's data - of a legal person or an organisational unit without legal personality,
  • ZUS ZAA -  Business addresses of the contributions payer.
  • ZUS ZBA - Information on bank account numbers of the contributions payer.

In the case of registrations of capital companies, you do not have to transfer to ZUS application documents of the contributions payer.  Shareholders are not subject to mandatory insurance (members of partnerships and single-member limited liability companies are subject to them). 

If you update data in the National Court Register or in the supplementary data (NIP-8 application), ZUS will update the data and prepare documents:

ZUS ZPA  - with regard to the notification of the amendment of data of the contribution payer:  a legal person or an organisational unit without legal personality,
ZUS ZIPA -  for notification of a change in the identity of the contributions payer,
ZUS ZWPA -  for deregistration of the contribution payer/suspension of activity,
ZUS ZAA -  in respect of the change of address of business by the contributions payer.
ZUS ZBA -  in terms of changing the bank account number of the contribution payer.

In the case of partnerships ( limited partnerships, registered partnership and professional partnerships) and single-member limited liability companies, shareholders are  required to register themselves, as contributions payer to insurance in ZUS within 7 days from the entry in the National Court Register (registration is not automatic). Each shareholder of a company is liable for his own insurance contributions, therefore should draw up and send to ZUS in electronic form (with a secure electronic signature verified by means of a valid qualified certificate) or in paper form (directly in ZUS organisational unit or through mail) registration of:

  • the contributions payer on ZUS ZFA form, where he enters his identification data, i.e. PESEL and NIP or NIP, REGON and PESEL (if a member also carries out separate economic activity other than in the form of a partnership);
  • himself to insurance as an insured person - on the ZUS ZUA form (or if he will be subject only to health insurance - on ZUS ZZA form) with PESEL. 

See the ZUS guide Are you planning to register your business in KRUS?

If you don't know how to complete the declaration form of contribution payer, please read the ZUS guides:

•    Notification/ modification of payer's data – natural person
•    Information on bank accounts numbers of contributions payer
•    Business addresses of contributions payer

You don't know how to submit registration for social and health insurance, we can help you. Consult the interactive guide Obligations of an entrepreneur starting business activities towards the Social Insurance Institution. You can also consult the ZUS guide in this respect:  Application to insurance/notification of change of data of the insured person.

In 2016 e-sick notes were introduced. Find out more here.

ZUS contributions

As an entrepreneur you are obliged to pay contributions to ZUS. Below you can find a list of contributions rates.

The list of contributions for social insurance, heath insurance and non-insurance funds concerning persons conducting non-agricultural economic activity, employees and persons who perform contract of mandate.

Type of insurance
Who? old-age disability sickness work accident health Labour Fund Guaranteed Empoyment Benefit Fund
Person conducting economic activity O O D O O O N
Employee O O O O O O O
Person under a contract of mandate, to whom the provisions on contract of mandate are applicable O O D O O O O

 

 

 

 

 

 

 

 

O - obligatory insurance

D - voluntary insurance

N- do not apply

 

Rates of contributions

'Small ZUS' - preferential contributions for social insurance

 
  2016 2017
  555,00 zł 600,00 zł
Old-age pension insurance 108,34 zł 117,12 zł
Disability pension 44,40 zł 48,00 zł
Sickness  13,60 zł 14,70 zł
Work-accident  9,99 zł 10,80 zł
Total 176,33 zł 190,62 zł
 
 

 

Contribution for social insurance (minimal) - 'full' ZUS

  2016 2017
Basis (minimal) of contribution 2433,00 zł 2557,80 zł
Old-age pension insurance (19,52%) 474,92 zł 499,28 zł
Disabilty insurance (8,00%) 194,64 zł 204,62 zł
Sickness insurance (2,45%) 59,61 zł 62,67 zł
Work accident (1,80%)* 43,79 zł 46,04 zł
Labour Fund (2,45%) 59,61 zł 62,67zł
Total 832,57 zł 875,28 zł
 

 

* The interest rate for contribution to accident insurance is variable and depends on the size of the company and the sector in which it operates and amounts to between 0.40 % and 3.60 %.  In the table the amount of contribution was calculated at a rate of 1.8 % for contributions payers registering for accident insurance in the previous calendar year on average not more than 9 persons per month.  

 

  • To these sums the health insurance contribution must be added, it amounts to PLN 297,28 for "small" and "full" ZUS in 2017.  
  • The annual basis of assessment for contributions to the old-age and disabilty pension insurance in the calendar year may not exceed thirty times the forecasted average monthly remuneration in the national economy for the calendar year concerned.  When it is exceeded the transfer of contributions to the old-age and disabilty pension insurance is ceased.

Read also the ZUS guide: ABC of contributions payer own insurance

Settlement of contributions, monthly declarations as a contributions payer

As an entrepreneur, you are required to submit monthly payment of contributions (based on the size of the company and the liability insurance):

  • social insurance (old-age insurance, disabilty, sickness),
  • health insurance
  • Labour Fund (FP),
  • The Employment Benefit Guarantee Fund (FGSP),
  • The Bridge Pension Fund (FEP). 

If you want to know more, in what circumstances and how to pay contributions to the Labour Fund, the Employee Benefits Guarantee Fund and the Bridge Pension Fund, go to the Social Insurance Institution (ZUS) website.  You can find more in-depth information in the ZUS guide:  Rules for payment of contributions to the Labour Fund, the Employee Benefits Guarantee Fund and Bridge Pension Fund.

You settle contributions by submitting declarations to ZUS:

  • ZUS DRA  - information reported to the Social Insurance Institution on the amount of contributions paid to ZUS, as the payer (paid for yourself and other insured persons). 
  • ZUS RCA - monthly report on due ontributions and benefits paid - to settlement of contributions for social security and health insurance and/or benefits paid for your staff (i.e. insured persons). 
  • ZUS RZA -  monthly report of the health insurance contributions due to the settlement of health insurance contributions for your employees who have other title to social insurance. 
  • ZUS RSA  - monthly report of paid benefits and interruption in the payment of contributions — to demonstrate the benefits provided and interruptions in the payment of contributions for your employees. 

If you do not employ workers and you are a sole trader, you do not submit reports.  You only submit ZUS-DRA statement.

What is important, the obligation to submit ZUS DRA does not apply to entrepreneurs who pay the minimum contributions (irrespective of whether this is the so-called ‘small ZUS or the basic contribution). It also does not apply to entrepreneurs who pay contributions for persons cooperating in a minimum amount.  Find out more on the website of the Social Insurance Institution about who is exempted from obligations to submit declarations. 

Remember that you can submit declarations using the Electronic Services Platform ZUS (PUE).  This means that you can fill in and effectively submit all the documents without leaving home or office.

Time limits

You must submit declarations:

  • by 10th day of the following month -  natural persons who pay contributions only for themeselves,
  • by 15th day of the following month - the remaining payers. 

If the end of this period falls on public holiday, a Saturday or a Sunday, the last day of the period is the next working day.

You do not know how to fill in DRA declaration, we can help you. Read ZUS information in this regard – Settlement declaration.

If for some reason you change assessment basis from which contributions are calculated, you must submit ZUS DRA for a given month. Such a change can be receiving sickness benefit. Another example is a situation when you start your business activity during a month – then you need to submit DRA declaration for part of settlement period and next one for a full month.

The obligation to submit DRA declaration once again doesn't relate to the change of level of contributions as a result of indexation.

As a contributions payer you can submit insurance documents to ZUS in paper form or electronically.  This depends on how many people's contributions you settle.  If you settle contributions of 5 persons or less, you can provide us with their insurance documents in paper form.  If more than 5 persons, you should submit declarations in electronic form. It is possible owing to the programme Płatnik or any other software, which fulfils the conditions laid down by the Social Insurance Institution (ZUS).  More about the programme Płatnik. 

If you want to know more about the rules for settlement of contributions, go to the Social Insurance Institution website.

 

Overpayment in ZUS

If you have an overpayment in ZUS,  unduly paid contributions will be set off against back, current and future contributions.  If you want to recover funds unduly paid to the Social Security Institution, you can submit an application for reimbursement.  Read more on what to do in case of overpayment.

 

When as an entrepreneur I do not have to pay contribution to social insurance

Overlapping of insurance titles is a situation when you have income from a few sources and provisions determine which is a basic one for calculating contributions for social and health insurance.

Business activity and full-time employment

In case of overlapping full time employment and non-agricultural activity as titles for insurance, the full time employment is superior ( contributions will be calculated and paid from this title).

If you work full time and earn at least the minimum national wage (in 2017 PLN 2000 gross), you do not have to pay social insurance contributions when at the same time you conduct business activity. Contributions are collected only from remuneration for employment.

Business activity and contract of mandate

If you provide services on the basis of civil law contracts and the contributions collected at least at the level as in the case of entrepreneurs who have paid the minimum social security contributions (60% of the projected average monthly remuneration), there is no obligation to pay contributions for business activities.

If under civil-law contracts during a given month contributions lower than the lowest contributions for entrepreneurs were paid then contributions from business activity must be paid, and in addition (voluntary) contributions also from civil law contracts may be paid.

Entrepreneurs conducting activity for which the small ZUS is applicable (basis for contributions at the amount of 30 % of the minimum wage) and at the same time provide services e.g. under contract of mandate, are subject to mandatory old-age and disability pension insurance from both titles (i.e. activity and mandate), unless the total assessment basis of contributions in respect of these titles reaches or exceeds the value of the minimum wage (2000 gross in 2017)

You must keep in mind that contributions from civil contracts are charged on a cash basis – they are charged for the month in which the remuneration was paid. If in a given month the remuneration has not been paid to you under a civil-law contract (e.g.  deferred payment for the next month), you need to charge social security contributions arising from activities carried out.

Find out more on overlapping of old-age and disabilty pension insurance from ZUS website.

Business activity and contract for specific task

Contract for specific task is not in principle a title to insurance. There is therefore no overlap of titles to insurance in relation to work under contract for specific task and to conducting non- agricultural activities. An exception is a situation in which a contract for specific task is concluded between the insured person and his employer. The Social Insurance System Act treats the remuneration paid on the basis of such a contract on an equal footing with income from employment contract.

Whom do I have to register for the insurance?

Carrying out economic activities you pay contributions for yourself but also for your employees and co-workers, and in some cases also for the family member who will assist you in the performance of activities and must be registered to  ZUS as an insured person.

Check your obligations towards your employees (employment contract) and co-workers (contract of mandate).

Check how the provisions define a family member cooperating with an entrepreneur and when you must declare such a person to insurance and pay contributions for him/her. Read the article Obligations of an entrepreneur assisted by a family member.

Health insurance

The basis for the calculation of health insurance contributions  is the assessment basis for calculating the old-age insurance and disability pension insurance i.e. revenue in the meaning of the provisions on the personal income tax.
In the case of persons conducting business activity and persons co-operating with them, the basis of contribution is the declared amount, not lower than 75 % of the average monthly remuneration in the business sector in the fourth quarter of the previous year, including payments from profits, announced by the President of the Central Statistical Office in the Official Journal of the Republic of Poland "Monitor Polski".  The contribution in the new amount is applicable from 1 January to 31 December of a given year.

The contribution amounts to 9 % of the assessment basis for the calculation of contribution.  Part of the contribution in the amount of 7.75 % of the assessment basis is to be deducted from the personal income tax, which is taken into account both in advances for tax and in the annual settlement.

The annual limit of assessment basis, i.e. the limit of  30 times of average wage estimated  per calendar year do not apply to health insurance contributions, as well as sickness and accidence insurance contributions. Contributions to sickness, accident and health insurance must be paid on the surplus over mentioned limit.

The health insurance contribution is in the annual tax return (PIT) deducted from tax.

In the case of health insurance contributions there is no overlapping of insurance when you work on the basis of an employment contract and conduct business activities at the same time, the contribution is charged on both titles – it will be paid twice.  If you conduct an individual activity, you are partner in two companies and work full time – you will pay a contribution four times. The health contribution is indivisible and always paid in full (even for an incomplete month). 

See the ZUS information on the rates of  social contributions, FGSP and FP in 2017

The ZUS publications provide you with detailed obligations of the payer, as well as information on the calculation of basis for contributions.

 

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