Application for deferral of contributions directly to Social Security
The Social Insurance Institution fortunately provides for the possibility of postponing the obligation to pay contributions for social security, health insurance, the Labor Fund, the Guaranteed Employee Benefits Fund or the Bridging Pension Fund. For this purpose, it will be necessary to submit an appropriate application. However, to take advantage of this opportunity, several conditions must be met.
First: the deadline
The application to Social Security must be submitted no later than the due date. However, this is a risky move, as there is no guarantee that we will get a deferral. If the Social Security Administration’s answer is negative, you will have to pay the premiums plus interest due to the delay.
Second: submission of the application
To apply, log in to the eZUS platform. It’s worth correcting here: this is no new platform – it’s the Electronic Services Platform (ZUS PUE), already well-known and in operation for many years, that is changing its name to eZUS.
Important!
You can submit an RSO request in four different ways:
- You can send your application electronically, using the eZUS platform (formerly PUE) and confirming with a Trusted Profile or qualified signature.
- You can send it by mail to the address of one of the Social Security offices.
- You can apply in person or through an attorney at a Social Security office.
- You also have the right to apply for deferral of Social Security contributions orally, during a conversation with a Social Security employee. In this situation, make sure that the employee writes a proper record of the conversation.
If you choose to apply in person or by mail, you can prepare the document in advance. Simply download the RSO Application form from the Social Security website. Although the application is not long, it contains many fields that need to be filled out in a specific way – we will discuss this later.
How to postpone the payment of premiums?
The RSO application is submitted by logging into eZUS (PUE) and then selecting the service “Submission of RSO document. Request for deferral of contributions” in the Service Catalog. The next step is to fill out the form. An important element of the application is the field titled “Justification of the application”. – This is where you will be given the opportunity to justify your request for deferral, and is one of the main elements of the evaluation, affecting whether the application will be granted.
The completed form must be accompanied by other documents. What documents are needed depends on the form of business and the chosen method of taxation.
Example
Mr. John is a sole proprietor and settles his business on a flat tax. Therefore, he will certainly need to attach the following documents to the RSO application:
- PIT-36 or PIT-36L for the year preceding the year in which it requests deferral of Social Security contributions,
- PIT-38 (if applicable),
- statement of family and property status and financial situation of an individual who does not keep full accounts.
Example
Ms. Catherine applies for deferral of Social Security contributions on behalf of a commercial company. The required documents are:
- Financial statements for the last 3 fiscal years (including balance sheet, income statement, cash flow statement),
- financial statements for the current year,
- statement of assets of the legal entity.
It is worth remembering that the list of additional documents is determined on a case-by-case basis – the documents listed in the examples above do not necessarily close the list. If the person who submits the RSO application is an entrepreneur, he or she will also have to include documents on public assistance.
And what happens if the documents sent to eZUS are insufficient? In such a situation, a Social Security employee will contact the applicant and urge him to complete the required items, while setting a deadline for doing so. If the deadline set by the employee does not suit you, you can ask for an extension.
Important!
Remember that you must sign the completed application. To do this, use a qualified certificate or Trusted Profile. After signing, send the documents.
Application sent – what next?
Even if you managed to send your RSO application through the eZUS platform, some of the documents still need to be delivered to the selected Social Security office in person or by mail. If the documents are incomplete, a ZUS employee will inform you. Pay attention to the preferred form of contact – you can choose it at the application stage. If you choose an electronic form, don’t forget to regularly check your inbox on the eZUS platform for new correspondence on the matter.
If you receive a request to complete the documentation, pay attention to the deadline and deliver the documents within the allotted time. If you fail to do so, your application will be automatically rejected. If you want to reapply for deferral of contributions, you will have to start the procedure all over again.
If your application is successful, Social Security will enter into an agreement with you. In a situation where you are submitting your RSO electronically, you will receive the agreement by email. Print out two copies, sign both, and send them to the Social Security office so that a Social Security employee can also sign the agreement.
If your application is denied, you will receive a negative response in writing, to the address indicated in the application.
Important!
Has Social Security agreed to defer payment, but the proposed terms do not satisfy you? You can challenge the way the application was handled within 7 days of receiving the Social Security decision.
The same is true if Social Security refuses to grant a deferral. In this situation you also have 7 days. Keep in mind, however, that technically you are not appealing the decision, however, you are questioning how the request was handled.
What do you gain from deferring Social Security payments?
In addition to the obvious possibility of paying Social Security premiums at a later date – the date specified in the agreement with the Social Security Administration – obtaining a positive assessment of the RSO application results in no interest payments. However, there is a catch – a businessman taking advantage of the deferral will have to pay a grace fee. Its amount is 50% of the rate of interest on late payment – the rate in effect on the date of signing the contract counts.
Possible complications
The above scenario was the most optimistic one. However, one must also prepare for a less auspicious course of events. Resubmit the RSO application in a situation where:
- request for deferral was rejected – in such a situation, we can try again, but before challenging the decision of the Social Security Administration, it is necessary to prepare an appropriate argumentation;
- the deadline for providing additional documents has passed – if this is the case, your application will be automatically rejected, but nothing prevents you from resubmitting it at any time. This time, however, remember to include all required attachments;
- the proposed terms are not satisfactory – deferred contributions for a quarter, while the company requested deferred payments for six months? Appeal the decision – it costs nothing, so it is worth trying;
- you do not keep the terms of the agreement – even from the worst matrix there is a way out – if the situation of your company has deteriorated, so that you are not able to implement the provisions of the agreement with Social Security (you do not pay, so that the agreement is de facto broken), you can apply again to keep its provisions in force (and negotiate a change of terms).
Second way to defer Social Security payments
In addition to the traditional application for deferral of Social Security contributions directly to the Social Security Administration, there is a second method that may be a bit easier to use. Entrepreneurs who are looking for alternative solutions and want to avoid the complicated procedures involved in filing with the Social Security Administration should consider the tax financing offer from PragmaGO. Under this offer, entrepreneurs have the option of deferring Social Security payments in a flexible and customized manner.
How does tax and Social Security financing work in PragmaGO?
Online application: an entrepreneur can apply for Social Security deferment online by filling out an online form, and sign the agreement with an SMS code. This is a convenient solution that saves time and eliminates the need to physically visit a Social Security office.
Individualized approach: the entrepreneur can choose in how many installments he wants to repay the obligation. Available options are 3, 6, 9 or 12 monthly installments.
Advantages of the offer
- Flexibility and adaptation to the needs of the entrepreneur – Social Security has its own hard rules, which it is not in the habit of bending. Taking advantage of PragmaGO’s offer means you can tailor the service to your company’s needs.
- Convenient online application – you do not need to submit documents in person, visit the facilities. We value your time, so you will go through all steps of the process 100% online.
- No need to go through complicated procedures at Social Security – the tax financing process at PragmaGO is quick, and our consultants will be happy to explain everything to you.
- Quick decision and the possibility of deferring Social Security payments in a short time – you do not have to wait two months for a decision. We will grant your company tax financing in a few hours!
Summary
The final choice between a traditional Social Security application and PragmaGO’s Social Security deferral offer should depend on the individual needs and preferences of the entrepreneur. However, it is worth considering that alternative solutions may prove to be more effective and adapted to modern business needs.
