What is the deadline for paying Social Security contributions?
The deadline for paying contributions varies depending on the type of enterprise.
- Budgetary units and establishments are required to pay Social Security contributions to 5. on the following month.
- companies, associations and foundations have time to 15. on the following month to pay Social Security contributions.
- at the latest, because only 20. on of the following month, the deadline for the payment of Social Security contributions for other payers, as long as they have employees.
What are the consequences of not paying Social Security premiums on time?
Interest on late payment
The primary penalty for failure to pay Social Security contributions on time is interest on late payment . Importantly, the entrepreneur does not receive a summons from Social Security to pay – the interest has to be calculated and paid on its own. Their amount depends on how long after the deadline the entrepreneur settles the overdue fees. For this, you can use interest calculators for premium arrears, available on the Internet.
Important!
If the value of the interest is less than 1% of the amount of the minimum wage, the entrepreneur does not have to pay it. As of July 2023. The amount is 36 PLN.
No sickness insurance
Failure to pay Social Security contributions on time also results in the termination of sickness insurance from the first day of the month for which the dues have not been paid. It is also important to remember that payment of outstanding contributions does not automatically restore sickness insurance. It is then necessary to apply to the Social Security Administration for reinstatement of insurance.
Additional fee for unpaid premiums
Social Security has the ability to impose an additional fee on an entrepreneur who fails to pay Social Security contributions on time. This fee is equal to 100% of the amount of unpaid premiums – this means that if this mechanism is triggered, the entrepreneur will have to pay twice the premium.
Other consequences
If a taxpayer does not pay his contributions on time before a long time, the Social Security Administration can take the case to court. When it comes down to it:
- The entrepreneur may be fined a maximum of five thousand zlotys;
- The Social Security Administration may file a request for a compulsory mortgage entry in the land register of a property owned by an entrepreneur;
- The court may initiate enforcement proceedings against the entrepreneur.
How can I avoid the consequences for not paying Social Security premiums on time?
If an entrepreneur cannot – for valid reasons – pay Social Security premiums on time, he has the right to apply to the Social Security Administration for deferment of the payment date or payment in installments. If the application is successful, the entrepreneur will not have to charge interest for paying Social Security premiums at a later date. However, even then, the entrepreneur is required to pay for his employees’ insurance (pension and health insurance).
It is worth noting that after five years from the deadline for payment of Social Security contributions, claims against an entrepreneur who has not paid them are barred by the statute of limitations. However, the statute of limitations does not apply to receivables secured by a mortgage or pledge, for which the Social Security Administration has conducted proceedings to secure payment of overdue contributions.
Where to get the funds to pay Social Security?
Entrepreneurs often do not pay Social Security contributions because they do not have funds in their accounts. However, there are solutions that can positively affect their liquidity.
Option 1: Unlock funds frozen in invoices
One of them is factoring , which involves the sale of receivables to a factoring company. Factoring improves disturbed liquidity: the entrepreneur receives funds for the company’s day-to-day operations, even before the recipient of the goods or services pays the invoice. This allows it to pay Social Security contributions, as well as other obligations, on time. PragmaGO offers tailored factoring services for different entrepreneurs (micro-enterprises, SME companies, sole proprietors, start-ups).
Option 2: Take out a loan or credit
Another way that can provide an entrepreneur with the means to pay Social Security is to take out a loan or credit. Financial institutions offer special solutions for entrepreneurs facing tax debts, such as a special purpose loan to pay off Social Security.
Option 3: Take advantage of tax financing
If you’re having trouble paying your current taxes or Social Security contributions, be sure to check out our tax financing service. In just a few minutes you can get the necessary funds, which you will repay later in convenient installments – from 3 to even 12. Be sure to include in the application the exact amount you need to settle the debt. If you want to finance more than one tax, you must submit a separate application for each. This does not mean more paperwork at all. The undoubted advantage of this solution is that you will arrange everything completely online, and accept the terms and conditions by SMS code.
