A New Obligation for Sole Proprietorships – They Must Submit Declarations to ZUS Every Month

The “Polish Deal” introduced new rules for paying health insurance premiums. New rules entail a new obligation for companies, including sole proprietorships. From the new year, they must submit a ZUS DRA declaration every month.

The “Polish Deal” raised massive chaos, which has not yet been dealt with. Accountants and tax advisers are not sure how the regulations will change during the year. The “Polish Deal” introduced changes for all taxpayers. One of the most important changes affecting entrepreneurs is the introduction of new rules for paying health insurance premiums.

The Importance of Sole Proprietorships:

Entrepreneurs taxed according to the tax scale or flat tax pay a contribution proportional to their income from the new year, companies paying a lump sum – pay a premium on recorded revenues in the amount depending on the income, and companies settling the tax card – in a fixed amount. Entrepreneurs on the tax scale will pay a contribution of 9% and those who use the linear PIT – 4.9%.

The deadlines for paying contributions collected by ZUS have also changed, including social and health insurance. It is now the 5th, 15th, and 20th of the month. The new deadlines apply to the settlement of contributions for January 2022 and subsequent months. They concern the settlement of contributions for social and health insurance, the Labor Fund, the Solidarity Fund, the Guaranteed Employee Benefits Fund, and the Bridge Pension Fund – informs ZUS spokesman Paweł Żebrowski.

He adds that joint-stock companies, multi-person companies, and cooperatives should settle accounts by the 15th day of the month. – the 20th day of the month is a date for entities that are not legal persons, i.e. for natural persons who run sole proprietorships or partnerships – says Żebrowski.

The “Polish Deal” and the changes in contributions related to the act also impose a new obligation on companies – submitting monthly ZUS DRA declarations. Due to changes in determining the health insurance premium, persons running a business who pay contributions for their own insurance or for themselves and for persons cooperating with them must submit settlement documents to ZUS every month.

Notably, this obligation also applies to sole proprietorships. The persons conducting a non-agricultural activity, paying contributions only for themselves or persons cooperating with them, after meeting certain conditions, were exempt from the obligation to submit settlement declarations or personal monthly reports for the next month. From the new year, this exemption applies to only three groups: clergymen, paying contributions only for themselves, parents employing a nanny, and people who voluntarily applied for retirement and disability insurance.