Health premium based on new rules. Severe changes are coming for entrepreneurs

From this year, new rules for calculating and paying for health insurance contributions apply. The new method of determining the fee applies mainly to people who run a business – the most burdensome one will be determining the amount of the health insurance contribution depending on the income or income. The new act does not define the upper limit of the health insurance contribution base (only the minimum one), which means that there will be cases of high payments to the Social Insurance Institution.

1. From the new year, health insurance contributions can no longer be deducted from the tax
2. The lowest health premium is now 9%. minimum wage for work
3. Entrepreneurs paying according to the tax scale will pay a health insurance premium of 9 percent. income, and those settling on the basis of a flat tax – 4,9 percent.
4. Check your health. Just answer these questions
5. You can find more about the coronavirus on the TvoiLokony home page

The fundamental change introduced on January 1, 2022 by the entry into force of the Polish tax order, and which applies to all taxpayers, the abolition of tax deductibility of health insurance contributions.

It should be remembered that, although the new tax regulations entered into force on January 1 this year the new rules for paying health insurance contributions will not apply to taxpayers until a month later. This means that the taxpayer will pay the new contribution for the first time in February 2022, with the payment deadline on March 20 this year.

New regulations introduced the concept of the so-called contribution year. As indicated in the Act, the contribution year is not equivalent to the calendar year, as it covers the period from February 1 to January 31. It is this period that will be included in the settlement of the health insurance contribution.

Health insurance contribution without tax deductibility

Until 2022, a system was in force in which almost 90 percent. the value of the health insurance contribution paid was deductible from income tax. So the cost of the health insurance premium was not high. From this year on, the tax deductibility of the health insurance contribution was definitely abolished. In addition, health insurance contributions will not be included in the cost of income.

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New rules for all payers

All taxpayers (full-time employees, entrepreneurs – regardless of the form of taxation chosen) are subject to the new rules for paying health insurance contributions. The form of taxation will have a significant impact on the amount of the health insurance contribution, as well as the method of its calculation and the possible ways of mitigating the newly introduced tax and contribution burdens.

Linear tax

Entrepreneurs who make flat tax settlements will pay a health insurance premium from this year, the amount of which will depend on the company’s income. This means that the premium will amount to 4,9 percent. entrepreneur’s income.

The amount of the contribution that the entrepreneur will pay for a given month will be calculated on the basis of the income obtained in the previous month.

Minimum premium

The new regulations introduce the concept of a minimum contribution. This means that the entrepreneur will have to pay the premium even in the event of a loss in a given month. The minimum amount of the health insurance contribution was set at 9%. minimum wage for work.

In the current year, the minimum wage will be PLN 3010, therefore, the minimum amount of the health insurance contribution will be PLN 270,90. The minimum premium will apply to monthly income ranging from PLN 0 to PLN 5510. For income above PLN 5510, the premium will be calculated as 4,9%. income.

Tax scale

Entrepreneurs deducting the health insurance premium according to the tax scale will also now pay a premium, the amount of which will depend on their income. However, in this case, the premium will amount to as much as 9%. company income. And here the minimum contribution will apply, as in the case of entrepreneurs who settle with a flat tax.

Linear tax more favorable than the tax scale?

When analyzing the new rules for accounting for health insurance contributions, it would seem that the flat tax is more favorable than the tax scale. Well no. It should be borne in mind that PIT settlement according to the tax scale is associated with the possibility of using the existing tax reliefs, deductions and other preferences that, as a rule, do not apply to flat tax.

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Lump sum principle

Entrepreneurs settling the tax on the basis of a lump sum on recorded revenues, will also pay the health insurance premium on different terms – they will pay it in a fixed amount. The new regulations assume that the health contribution for lump sums will be dependent on the level of the average salary.

Tax card

Taxpayers who settle accounts on the basis of a tax card also face changes in health insurance fees. In this case, the health contribution will be even lower than the lump sum and will amount to 9%. from the minimum wage. In 2022, the amount of health insurance contributions for companies on the tax card will be PLN 270,90.

Since January, this form of taxation has been frozen. This means that from 2022, only those companies that have opted for this form of taxation by the end of December 2021 will be able to settle the tax card. From 2022, it will no longer be possible to make such a choice.

The choice of the form of taxation – significant savings in the future

Changes to the payment of health insurance contributions include all entrepreneurs, regardless of the type of taxation. However, the differentiation of the method of calculating the contribution means that changing the applicable form of taxation may bring significant savings in the future.

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According to the applicable regulations, the taxpayer may change the form of taxation up to the 20th day of the month following the month in which the company earned its first revenue in a given year.

Monthly reporting to ZUS of information on the income earned

The new regulations introduce a severe change for people running a business, and it is obligation of monthly reporting to the Social Insurance Institution of information on the income achieved. The new obligation will apply to entrepreneurs, in the case of which the amount of the health insurance contribution will depend on the amount of income (here we are talking about flat tax and tax scale).

The increase in administrative obligations also brings positive information – along with the change in the method of calculating health insurance contributions, the deadline for paying ZUS contributions has also been extended. From this year on, ZUS contributions will be payable not as before until the 10th, but until the 20th day of the month.

Annual health contribution declaration

The new regulations introduce the obligation to prepare an annual health contribution declaration. The new annual tax return will be a completely separate document from the annual PIT tax return, but it will be constructed on similar principles. Monthly health insurance premiums will constitute a kind of advance payment for the annual health insurance premiumj. These advances will be shown in the annual health insurance contribution and their sum will be compared with the annual health insurance contribution due.

As in the case of PIT settlement, also in this case, at the end of the year, an underpayment or overpayment of the premium may arise, which will be returned to the entrepreneur’s account. The potential overpayment will not be refunded to the company’s account automatically. The new regulations stipulate that in order to recover the overpaid health insurance premium, the entrepreneur will have to submit a special application to the Social Insurance Institution. The deadline for submitting such an application will be May 31 of each year.

The overpayment of the health insurance premium will occur in every entrepreneur who achieves a monthly loss or low income at least once a year, necessitating the payment of a minimum health insurance premium. Such a premium, although subject to the obligation to pay, will be reimbursed annually.

At the same time, we encourage you to listen to the latest episode of the RESET podcast. This time we were talking about breathing. Breathe with your mouth or nose? How To Get Rid Of Bad Breathing Habits? What is breath re-reduction and how does it affect our mental and physical health? You will hear about this and many other aspects of breathing below.

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