Health contribution 2023 – for tax scale and flat tax
As we mentioned in the introduction – the basis for the health insurance premium varies depending on the form of taxation chosen by the business person. Companies that account for themselves using the tax scale or flat tax determine the amount of the health contribution from February 1 of the current year to January 31 of the following year.
The lowest health insurance premium an entrepreneur can pay is 9% of the minimum wage in effect on the date the premium is determined. On February 1, 2023, the minimum wage was PLN 3,490. This means that the minimum health contribution from February 1, 2023 to January 21, 2024 is PLN 314.10.
Important!
Although the minimum wage is scheduled to increase from PLN 3,490 gross to PLN 3,600 gross in July 2023, this will not affect the health insurance premium in 2023. This one will not change until February 1, 2024.
Health contribution for tax scale – calculator
How do you calculate the amount of the health contribution when you run a business taxed under the tax scale, but earn more? The equation is simple: just multiply the amount of income by 9% – the result of the action will determine the amount of premium to be paid.
It is worth remembering that in order to calculate the health insurance premium for April, the income earned in March must be taken into account. The premium, in turn, is paid in May. Such a process can be questionable, which is why we have prepared an example involving health premium calculations over three months of 2023.
Example:
Mr. Matthew’s company generated the following revenues:
- February – PLN 9,250;
- March – PLN 2,900;
- April – PLN 11,370.
Here’s how to calculate the premiums for each month:
March: 9% of the amount of PLN 9,250 (February income) is PLN 832.5. The entrepreneur must pay a contribution in this amount by April 20.
April: 9% of the amount of PLN 2,900 (March income) is PLN 261. However, the minimum health insurance premium in 2023 is PLN 314.10, so this is the amount Mr. Matthew must pay. The transfer should reach Social Security by May 20.
May: 9% of the amount of PLN 11,370 (April income) is PLN 1,023.30. This amount must be paid by June 20.
Health contribution for flat tax – calculator
For sole proprietors taxed on a flat tax, the situation is similar except that the health insurance premium is not 9% on income, but only 4.9%. Consider the same example. In the option under discussion, however, Mr. Matthew will opt for a flat tax.
Example:
Mr. Matthew’s company generated the following revenues:
- February – PLN 9,250;
- March – PLN 2,900;
- April – PLN 11,370.
Here’s how to calculate the premiums for each month:
March: 4.9% of the amount of PLN 9,250 (February income) is PLN 453.25. The entrepreneur must pay a contribution in this amount by April 20.
April: 4.9% of the amount of PLN 2,900 (March income) is PLN 142.10. However, the minimum health contribution in 2023 is PLN 314.10, so this is the amount Mr. Matthew must pay. The transfer should reach Social Security by May 20.
May: 4.9% of the amount of PLN 11,370 (April income) is PLN 557.13. This amount must be paid by June 20.
Health premium 2023 – for entrepreneurs on a lump sum from registered income
If a company uses a lump sum on registered income, it must take into account two factors when calculating its health insurance premium: the company’s income (lump sum payers are not allowed to take into account deductible expenses) and the amount of the average salary in the business sector.
In 2023, entrepreneurs check this amount for the fourth quarter of 2022.
Entrepreneurs accounting for lump sums benefit from three thresholds:
- if the company’s income does not exceed PLN 60,000, the basis for the health contribution assessment is calculated, taking into account 60% of the amount of the average monthly salary in the enterprise sector. In 2023, it is PLN 4,179.56, so the health premium to be paid is PLN 376.16.
- if the company’s revenue is between PLN 60,000 and 300,000, the entrepreneur takes into account the average monthly salary of 100%, or PLN 6,965.94. This means that the amount of the health contribution will be PLN 626.93.
- if the company’s revenue exceeds PLN 300,000, the entrepreneur must take into account 180% of the amount of the average monthly salary, or PLN 12,538.69. The amount of premium to be paid in such a case will be as much as PLN 1,128.48
Simplified health insurance premium for flat-rate taxpayers
It is possible to pay a simplified health contribution for entrepreneurs using a lump sum on registered income. The simplified form means that the entrepreneur will be able to calculate the health contribution on the basis of the assessment base determined by the income earned in the previous calendar year. This amount should be reduced by social security contributions paid in the previous calendar year.
However, it is important to note that in order for this deduction to be possible, the premiums paid last year could not be counted as deductible. The entrepreneur also could not deduct the health premium from income under the Personal Income Tax Law.
In such an arrangement, the entrepreneur applies a single health contribution rate for the entire calendar year. However, there are two important conditions that a company must meet in order to benefit from the simplified contribution.
First: she must pay flat income tax in the year in question. Second: in the entire previous calendar year, it has carried out activities taxed on a flat rate or general basis.
Health premium 2023 – for tax card entrepreneurs
In this case, no calculations are needed. Entrepreneurs who settle their tax with the help of a tax card (that is, freelancers, but also entrepreneurs taking advantage of the startup tax credit) pay a fixed health insurance premium throughout the year.
The basis for calculating the health contribution for these entrepreneurs is the minimum wage in effect on January 1 of the year in question. In 2023, the minimum wage was PLN 3,490. How much is the health contribution for entrepreneurs settling in the form of a tax card? As much as the minimum health premiums of those using the tax scale or flat tax. Entrepreneurs on the tax card will therefore pay PLN 314.10 in health premiums.
Important!
Remember that the tax card is a form of taxation that can no longer be chosen. As of 2022, the tax card applies only to entrepreneurs who previously benefited from this type of taxation. Newly established sole proprietorships can choose between a scale tax, a flat tax or a lump sum tax on registered income.
What is the deadline for paying the health premium?
Every entrepreneur must pay a health contribution by the 20th. day of the month following the month to which the health insurance premium applies. For example: the contribution for March 2023 should be paid by April 20, 2023.
