Responsibilities of the Social Security payer
Every entrepreneur is obliged to pay contributions to the Social Insurance Institution – the only exception is for non-registered activities. We always pay Social Security by the 10th of each month or by the 15th of the month (when our company has employees).
If there is a delay, we must face the consequences. Among other things, we risk having to pay statutory interest – but the good news is that if the delay is symbolic and the amount of interest due does not exceed 1% of the amount of the minimum wage, the Social Insurance Institution will not require its payment. This follows from the provisions of the Social Security Act (Article 23, item 1a).
But that’s not all: Social Security can impose an additional late fee on the payer. It amounts to 100% of the contributions that the entrepreneur has not paid. This means that if the delay lasts five months, and the payer is already using a large Social Security, the value of the unpaid premium will reach the amount of PLN 7,287.45, and the additional fee will be the second amount!
In extreme cases, when the delay drags on and the entrepreneur shows no willingness to resolve the matter amicably, representatives of the Social Security Administration may collect directly from his bank account the contributions due with interest, or even seize the debtor’s assets.
If you know that you may have a problem paying what you owe to Social Security, don’t wait for the due date, but contact Social Security as soon as possible.
There is also a second option, which is to spread the Social Security payments in installments. All you have to do is fill out and send a simple application to get the funds to pay Social Security, which you will pay back later in convenient monthly installments – from 3 to even 12!
When will we need a certificate of non-default from Social Security?
Although the vast majority of business people keep an eye on the deadline for Social Security payments, there is no shortage of entities that are in arrears with the Social Security Administration for various reasons. Meanwhile, not being in arrears with Social Security is an important indicator that sends a signal about a company’s stable financial situation.
That’s why financial institutions, but also offices, require a certificate of no Social Security arrears in various situations. When is such a certificate necessary?
- While arranging a loan for the company;
- When we want to use factoring services;
- on the circumstance of the lease agreement;
- When we as a company take part in a tender.
Where to get the ZUS RWN application from?
The code RWN is used to designate the application of a premium payer for a certificate of nonpayment of Social Security contributions. You can download it from zus.info.pl or pick up a paper version at the nearest Social Security office.
Important!
In various situations, you may also encounter the name of the application: ZUS EWN. It’s worth knowing that this form has been replaced in 2019 by the ZUS RWN, which is now the only applicable application through which you will obtain a certificate of non-default from the Social Security Administration. In practice, only the name of the form has changed – its contents are the same.
If you prefer the traditional solution
All you have to do is visit the nearest stationary branch of Social Security and ask for a form to fill out. However, filling out the application on paper does not mean that you must also receive the certificate in this form. You can select the appropriate option to receive the document, for example, in the ZUS PUE or by proxy.
If you want to get things done online
The most common choice, of course, is to apply online. To be able to fill out an application electronically, you will need a Trusted Profile or an e-passport. Log on to business.gov.co.uk, go to the “Popular online services” section, and select Certificate of no arrears of Social Security contributions. Here you can also obtain a Certificate of no tax arrears or stating the status of arrears and download many other necessary applications.
Once you’ve navigated to the appropriate subpage, click the “Get Online” button and follow the further instructions – go to the Social Security website and from there submit the Social Security RWN application.
Important!
You will receive the document on the lack of Social Security arrears free of charge, within 7 days from the date of application. The situation is different in the case of a certificate of no tax arrears, for which a fee of PLN 21 must be paid.
How do I fill out the application for not owing Social Security?
If you are filling out a paper form or just setting up a Social Security PUE account, you will need to manually enter all the necessary data. While filling out many official applications can present considerable difficulties, the application for a certificate of non-liability with Social Security is not one of them.
First, you must complete the application with your company’s data. They consist of:
- TAX ID;
- REGON;
- PESEL;
- Proof of identity (series and number of identity card, passport or residence card with an indication of the type of document);
- Company name or payer’s name;
- Address details;
- Contact number.
After entering the basic data in the application, all you have to do is select the number of copies of the certificate you need, and then choose the method of receiving the answer that suits you best.
You can pick up the Social Security certificate of non-default:
- At the nearest Social Security branch;
- Via snail mail, to the address indicated in the application;
- Electronically – you will receive the certificate in the PUE ZUS inbox.
Important!
If you want your proxy to collect the certificate, attach a PEL application to the application you are now submitting, so that you can grant power of attorney to the person of your choice. You can find the necessary template on the Social Security website.
Certificate of non-default vs. factoring
As we mentioned at the beginning of the article, the Social Security certificate of non-recourse can come in handy when you apply for factoring – and especially if you plan to use factoring with recourse.
Factoring with recourse (a.k.a. incomplete factoring) works similarly to classic full factoring, but the risk of the counterparty’s insolvency in this variant does not pass to the factor, but remains with the company using the factoring.
As the factoring company will be the one to pay the receivable in case of solvency problems with the debtor, it will be necessary to submit relevant documents attesting to the good financial condition of the company. A certificate of not being in arrears with contributions to the Social Insurance Institution will certainly be required at that time.
Learn more about factoring with recourse: what documents do you need, what are the costs, and when do you get paid? Read the article on our blog!
