[Poland] Health contribution for companies on a lump sum in 2024 – how much will it amount to?

The amount of the health contribution for a lump-sum payer depends, inter alia, on the amount of the average monthly salary for the fourth quarter of the previous year. On 22 January, the Central Statistical Office (GUS) published a notice on this matter. So how much will the health contribution of companies on a lump sum be in 2024?

Amount of health contribution and lump sum settlement

On 22 January 2024, the Central Statistical Office (GUS) reported that the average monthly salary in the enterprise sector, including profit distributions in Q4 2023, was PLN 7767.85.

Therefore, companies which settle in the form of a lump-sum tax on registered revenue will face an increase in health contributions. In order to determine the contribution amount, two variables are taken into account, i.e. the entrepreneur’s revenue and the average monthly salary in the enterprise sector for the fourth quarter of the previous year. Read also: A month without ZUS contribution? New solutions for entrepreneurs coming up

Moreover, the health insurance contribution for lump sum payers is 9% of the assessment base, with the assessment base calculated according to three rates:

• 60% of the average remuneration with annual revenues not exceeding PLN 60,000,
• 100% of the average remuneration with annual revenue between PLN 60,000 and PLN 300,000,
• 180% of the average remuneration with annual revenues exceeding PLN 300,000.

Thus, the health contribution rate for companies on a lump sum in 2024 will be respectively:

Health contribution for lump-sum payers in 2024 – two ways of settlement

An entrepreneur settling in the form of a lump sum on registered revenue can settle the health contribution in two ways:

• Fixed amount each month and annual settlement,
• Progressive when moving to the next revenue threshold.

The first method means that a lump-sum entrepreneur pays the health contribution throughout the year in a fixed monthly amount based on the previous year’s revenue, and in May of the following year must pay the amount due in the annual contribution settlement. This option can only be chosen by companies that have been in business for a full 12 months in the previous year.

The second method of settling health contribution on a lump sum basis involves moving to the next threshold as revenue increases. Thus, an entrepreneur pays a contribution according to a given threshold, and after moving to the next revenue threshold, he/she pays a correspondingly higher contribution.

Moreover, those who settle in the form of a lump sum on registered revenue from 2022 onwards may benefit from a deduction of the contribution from their revenue. 50% of the health contributions paid can be deducted. Read also: Health contribution deduction in 2024

Read also: PIT return for 2023

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