ZUS has issued a new interpretation. Vacation benefit exempt from contributions

Let us recall: the obligation to create an Employee Benefits Fund rests with employers employing at least 50 full-time employees as at 1 January of a given year.

ZUS has taken up the case of an entrepreneur who does not create a company social benefits fund, but nevertheless intends to pay his employees holiday benefits from the company's current assets - Rzeczpospolita quotes. Importantly, its amount is not to exceed the basic deduction, because it would be due to employees who were on holiday for a total of at least 14 days in a given calendar year.

In the above case, the entrepreneur wanted to know - although he does not create an Employee Benefits Fund - whether, in accordance with the regulation of the Minister of Labour and Social Policy on detailed principles for determining the basis for calculating contributions for retirement and disability insurance, the basis for calculating contributions is not the holiday allowance paid up to an amount not exceeding the annual amount of the basic deduction.

As reported by "RP", ZUS in the case in question decided that it would not have to pay contributions for the payments in this respect . In the interpretation, it recalled that the basis for calculating contributions is income. At the same time, it was said to have added that the payer does not pay dues to ZUS for every amount, and the exclusions are included in the regulation. The pension authority agreed with the entrepreneur that in this case he could use the provision included in the cited regulation.

ZUS indicated that holiday benefits paid under the provisions of the Act on the Employee Benefits Fund are not included in the basis for calculating ZUS contributions – quotes "RP".

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