New requirement for social security contributors
 

From 1 January 2021 social security contributors or persons commissioning work will be obliged to inform ZUS about concluding every contract for specific work:

• if the contract is concluded with a worker they are not in an employment relationship or 
• if in the framework of such a contract the worker does not provide work for the employer they are in an employment relationship. 

It will be required to fulfil this duty in 7 days from concluding such a contract for specific work, and the information will be recorded on the contributor’s account.

What does it mean for entities concluding contracts for specific work?

The obligation to record such contracts does not automatically mean that social contributions are to be paid. However, it seems to be the first step towards being covered by compulsory social contributions. Before that happens, however, ZUS will use the records in the course of inspections (which results from the justification of the new regulations).

Bearing in mind how strictly ZUS interprets the concept of work, it can be expected that a significant percentage of such contracts will be reclassified into contracts of mandate you have to pay contributions from or similar.

For example, in the case of reclassification of a specific work contract with a gross remuneration of PLN 5,000 into a mandate contract or a similar contract, the contributor will have to pay approx. PLN 2,000 overdue social security contributions plus late payment interest. 

What and when should an entrepreneur who concludes contracts for specific work do?

The draft regulation specifying the template for information on contracts for specific work has not yet been published. On the other hand, companies that cooperate with natural persons on the basis of such agreements should prepare themselves for the entry into force of the new regulations.

Now you should: 

• take a critical look at the concluded contracts for specific work and the templates of such contracts used,
• verify the legitimacy of their conclusion in individual cases,
• estimate the risk level of reclassification of specific work contracts into mandate contracts,
• make decisions regarding possible changes to work contracts for the future and implement them, and
• determine in which cases the reporting contracts will continue to apply.