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Benefit for self-employed and persons employed under civil law contracts

On March 31, the president’s signature was finally adopted the “anti-crisis shield”. It covers mainly micro-entrepreneurs – the rulers have recognized that this group is most vulnerable to losses and they can count on the most benefits. Self-employed people also enter here. These are forms of compensation for business downtime that would not normally occur. What are the specific solutions for self-employed workers?

This is mainly – benefit for demurrage

This is a benefit for the economic downturn caused by the virus outbreak. It is available to persons conducting non-agricultural business activities and persons employed under civil law contracts. In the highest dimension it is PLN 2080 net, i.e. no contributions or tax should be paid from it. The condition to be met is that the revenue in the month preceding the submission of the application should not exceed PLN 15,681 – more precisely, it is 300% of the average salary from the quarter preceding the submission of the application. The above value comes from the fourth quarter of 2019. At the same time, for self-employed persons whose income in the month of submission in relation to the previous month fell by a minimum of 15%. In addition, if the activity was suspended after January 31, 2020, however, suspension is not necessary.

It is worth mentioning that contracts below PLN 1,300 per month will not receive this benefit. Persons on civil law contracts (contract for specific work; orders) are also entitled to receive such a benefit. The client should submit the application on their behalf. (Article 15zq, 15zr of the Act).

For civil law and self-employed contracts, it is a necessary condition not to have other insurance titles. If we want to apply for a benefit, we cannot have an employment contract with another employer.

For settlements in the form of a tax card and simultaneous exemption from paying VAT, self-employed workers are entitled to PLN 1,300.

It is also – exemption from social insurance

Total release from all contributions is also granted to self-employed workers with income up to PLN 15,681, which constitutes 300% of the average remuneration from the previous quarter announced by the Central Statistical Office. Exemption while retaining entitlement to health services. Practical advice: the exemption works if you have not yet paid contributions for April – otherwise the money will not be refunded. Declarations must be made in the same way as always.

To use the above forms of assistance, you must conduct business or have a civil law contract before February 1, 2020.

From April 1 through the ZUS PUE website or on paper, by sending an application to ZUS, you can apply for a benefit allowance. Applications for benefits may be submitted to the Social Insurance Institution within 3 months of the month in which the epidemic was lifted at the latest.

As part of the Anti-crisis Shield 2.0 project, it is proposed to extend the payment of benefit of demurrage allowance for self-employed and employed under civil law contracts for a maximum period of 3 months and extending from the ZUS (also partial) broader categories of entrepreneurs.