PPK continues to surprise employers

2019.11.04

This time, it concerns the moment the PPK participant’s income arises from the payment financed by the employer. In the view of the Ministry of Finance, an employee's income on account of payment of this kind occurs only in the month in which the employer transfers the payment to a financial institution. Therefore, it will take place at least in the month after the deduction of the employee's payment, and in many cases even later. Consequently, the tax advance on this payment won’t be deducted from the salary of the PPK participant when the amount of contributions to the PPK is calculated and the employee's contribution is deducted. For example, if the employer pays remuneration to an employee who is an PPK participant on February 8, the employer calculates the amount of its contribution and the employee's contribution on that date and deducts the employee's contribution from the employee's salary. By March 15, the employer is obliged to transfer the calculated amounts to the financial institution. Once the employer’s payment is made to the financial institution, there will be an obligation to collect an advance tax payment from the employee. The advance payment can be physically deducted only from the employee's salary paid to them in April. Admittedly, the obligation to collect the advance payment occurs in March but after in the March payment of the employee’s remuneration has been made. The first salary available for deduction will, therefore, be the one paid in April. 

The above interpretation undoubtedly hinders settlements related to PPK and will raise questions on the part of employees looking at their payslips.