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ZUS holidays are expensive and have many drawbacks
Entrepreneurs entitled to contribution holidays
You are entitled to exemption from ZUS regardless of the form of taxation. Therefore, they apply to both taxpayers settling on general principles, flat tax or lump sum tax, as well as those who are on a tax card.
A monthly exemption from paying social security contributions is provided for entrepreneurs who run a business under the Act of March 6, 2018 – Entrepreneurs' Law. Therefore, the following persons will not benefit from the right to contribution holidays:
- collaborating people,
- creators and artists,
- people running a freelance business,
- partners (other than partners of a civil partnership),
- shareholders,
- general partners,
- people running a public or private school.
Who else won't take advantage of ZUS holidays?
The Act additionally limits the group of eligible entrepreneurs, excluding from this group:
- people who provide services to their former employers (same scope of work and period after employment specified in the regulations),
- contribution payers employing more than 9 employees,
- employed under an employment contract who also run a business and earn at least the minimum wage,
- entrepreneurs who, in the period of 2 years preceding the submission of the application, did not obtain income from business activity or obtained it in an annual amount exceeding EUR 2 million.
Scope of exemption under contribution holidays
As part of the ZUS holiday, taxpayers benefit from a one-time exemption from paying contributions for one month a year. ZUS holidays are intended to concern social security contributions. These include contributions to retirement, disability, sickness and accident insurance. The exemption will also cover contributions to the Labor Fund and the Solidarity Fund.
In order not to also pay voluntary sickness contribution, you must be covered by this insurance one month before and on the day of submitting your application. During the holidays, only the mandatory health insurance contribution will remain to be paid, which must be paid by the current deadline.
Effects of exempting an entrepreneur from ZUS contributions
Micro-entrepreneurs can now actually reduce the costs of running a business. They do not have to suspend their company or give up their activities.
– It is important for entrepreneurs that during the period of exemption from contributions, they retain all benefits resulting from being subject to insurance. Even a short suspension of activity results in deregistration from the insurance system. Therefore, we can positively evaluate the latest solutions and the fact that they enable continuation of insurance – says Arkadiusz Kacperek, leader of the team of tax and insurance experts at CashDirector.
He also lists other advantages of the new legal regulations.
– Financing the ZUS contribution by the state budget is the entrepreneur's income, but it is exempt from taxation. Additionally, during the contribution holidays, entrepreneurs can legally issue invoices and actively run their business. It is up to them whether they will devote this time to rest or treat the leave only as a way to reduce the costs of running their business every year – comments Arkadiusz Kacperek.
When is the first contribution holiday?
The new regulations enter into force on November 1, 2024. This means that only then can you apply for exemption from contributions. According to the Act, it must be sent in the month before the month for which the entrepreneur wants to benefit from the relief, therefore the contribution holidays will only be available for December 2024.
The effects of the layoff will be felt even further in time for his portfolio. Contributions for December are paid on January 20, so only in 2025 will the first entrepreneurs be able to make real savings.
How to take advantage of contribution holidays?
The exemption from paying contributions in a selected month is a voluntary relief, so the entrepreneur will only obtain it after submitting an application. It should be sent electronically using the ZUS PUE platform. You should also remember to do it a month before the planned ZUS holidays.
What should the application contain? In addition to entering basic information about the entrepreneur, the application must be accompanied by declarations on the fulfillment of the conditions entitling to benefit from the relief. The required documents include, among others: declaration of de minimis aid (support for the entrepreneur received from the state). An entrepreneur who wants to benefit from the exemption should have a de minimis aid limit in the amount of the total contributions from which he or she wants to be exempt.
It is currently difficult to predict how many taxpayers will decide to apply for exemption from contributions this year. The real test of the popularity of the new regulations will certainly be 2025, when it will be possible to take advantage of the contribution holidays at any chosen date.
