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2023 brings many changes for taxpayers, though fewer than the previous year. A significant amendment effective from 1 January 2023 concerns when contributions are recognised as tax-deductible costs. A contribution payer is an entity or person obliged to calculate, collect and transfer contributions to ZUS. These contributions are a cost for the payer, usually the employer.
Two ways to account for your own contributions in KPiR
- Paid social contributions can be entered as a tax-deductible cost in column 13, no earlier than the payment date. Use an internal accounting document, preferably with payment confirmation. This may be particularly beneficial when expecting a loss.
- Alternatively, reduce taxable income without recording contributions in the ledger or preparing an internal document. Include them when calculating income-tax advances. Where social insurance applies through employment, only health insurance is paid from the business. Paid social insurance is not a tax-deductible cost and should not be recorded in KPiR. A paid 9% health contribution permits reducing calculated tax by 7.75% of its basis.
Companies differ. For example, a limited liability company shareholder’s social contributions cannot be company costs, because the company is the taxpayer, the shareholder is not an entrepreneur and payment is a benefit for themselves.
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When contributions are recognised
Previously, the timing was:
- In the month for which contributions were due, within the deadline under separate provisions.
- In the following month, within the deadline under labour law, contract or another legal relationship, no later than its fifteenth day.
In the coming year, employer-financed contributions are costs in the month they concern, provided payment is made by the statutory deadline. Late payment means recognising the cost only in the month of payment to ZUS. The wage-payment date therefore ceases to matter. This follows Article 22(6bb) of the PIT Act and Article 15(4h) of the CIT Act in their versions effective from 1 January 2023.
Transitional rules
Contributions paid after 1 January 2023 but relating to 2022 wages follow rules effective until the end of the current year. Harmonisation is viewed positively and is a direction we believe legislators should follow. Timely payment remains a problem: missing deadlines can require corrections to the cost period and extra settlement work.
The annual health contribution
In 2023, taxpayers using general income-tax rules or lump-sum taxation will determine the annual health contribution for the first time. Settlement is in the ZUS DRA declaration for April 2023, covering 1 February 2022 to 31 January 2023, with revenue from January–December 2022.
For general-rule taxpayers:
- Calculate 2022 business revenue minus tax-deductible costs.
- Deduct pension, disability, sickness and accident contributions paid that year, provided not already included in costs.
Revenue not taxable under the Act is excluded, except PIT-exempt revenue under reliefs such as return relief, families 4+ relief and working-senior relief.
For lump-sum taxpayers, multiply the number of health-insurance months by:
- 60% of the fourth-quarter 2021 average monthly enterprise-sector wage including profit payments, PLN 3,732.62, for annual revenue up to PLN 60,000.
- 100%, PLN 6,221.04, for revenue above PLN 60,000 and up to PLN 300,000.
- 180%, PLN 11,197.87, for revenue above PLN 300,000.
Taxpayers using these methods must submit the annual tax settlement by 30 April 2023. The annual health contribution is settled in the April 2023 declaration submitted to ZUS by 20 May 2023.
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Summary
The article describes changes to contribution-cost timing and the first annual health-contribution settlement. Payment deadlines determine when employer-financed contributions can be recognised, while transitional rules distinguish 2022 wages. Annual settlement calculations differ between general-rule and lump-sum taxpayers.
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