Medical packages and other benefits for employees without Social Security
Medical inflation is higher than average - this year there have been or are expected to be price increases for medical subscriptions - including those for employees. This is a good time to review how benefits such as medical subscriptions, life insurance or sports cards are provided to employees are accounted for for PIT and ZUS purposes.
While it goes without saying that such benefits are subject to PIT, if several conditions are met, the financing (co-financing) of these benefits by the employer can be excluded from the basis for calculating social and health insurance contributions. This translates into savings for both the employer and the employee.
In order to benefit from the exclusion from the Social Security contribution base, several conditions should be jointly met, i.e. the benefit for the employee
should be non-monetary in nature,
result from a collective agreement, remuneration regulations or remuneration provisions,
consist in an entitlement to purchase goods, items or services at prices lower than retail prices (which involves co-financing, even if only in a token amount, by employees).
The application of the exemption should be reflected in the company’s internal documents setting out the rules for the use of benefits and their co-financing. An additional safeguard for the company may be to obtain a written interpretation issued by ZUS, confirming the correctness of the application of the exemption.
If you are interested in this topic, we offer support in the following areas: analysis of documents and their modification, implementation of the partial payment procedure and preparation of an application for an interpretation issued by ZUS – please contact us.