pieniądze

GOVERNMENT FINANCIAL SUPPORT FOR ENTREPRENEURS

From 31 March to 1 April, the Polish Parliament passed a chapter of laws called the “Anti-Crisis Shield” with many amendments that apply to the current exceptional situation with the COVID 19 epidemic. The laws will be amended by numerous other regulations. Many elements of these laws aim to set up frameworks for the “economic” part.

 

Co-financing of employees remuneration by the Wage Guarantee Fund (FGSP)

An entrepreneur who has experienced a decrease in turnover of at least 15% to 25% following the COVID-19 pandemic may apply for a 3-month co-financing
of salaries and payments of social security contributions for employees that are exposed to:

  • economic stoppage–the possibility of reducing the salary to a maximum of 50%, but the salary cannot be lower than the minimum wage; in proportion to the working time.  The maximum amount of co-financing per employee will be PLN 1,533,09.
  • reduced working hours–by 20 %, not more than half-time, provided that
    the salary cannot be lower than the minimum wage, taking into account the working hours. The maximum amount of co-financing per employee will be PLN 2,452,27.

Co-financing of a part of the wage costs–aid granted by starostes (district governors) 

Employers may, in the event of a decrease in turnover of at least 30%-80%
as a result of COVID-19, be granted an aid to cover a part of the wage costs of employees and the social security contributions payable on those wages of between 50% and 90% of the wage costs, depending on the income lost, but not more than 50% to 90% of the minimum wage.

Note: the aid applies to micro, small and medium-sized enterprises within the meaning of Article 4(1) or (2) of the Act of 6 March 2018–Entrepreneurs Law Act.

Stoppage/Reduced working hours

The Act amending the Act on special arrangements for preventing, counteracting and combating COVID-19 allows for the introduction, within companies, of the following measures:

  • stoppage–the possibility of reducing the salary to a maximum of 50%, but the salary cannot be lower than the minimum wage; in proportion to the working time,
  • working hours reduced by 20 %, but not more than to half-time, provided that the salary cannot be lower than the minimum wage, taking into account the working hours, by concluding an agreement with trade unions or employees’ representatives. The conclusion of such agreement exempts the employer from creating notices of change pursuant to Article 42 of the Polish Labour Code.

Working hours

As for the employers who have experienced a decrease in turnover by at least 15% to 25% following the occurrence of COVID-19 and have not incurred any arrears with their tax and social security obligations until the end of the third quarter of 2019, the Act allows for:

  • the reduction of the daily uninterrupted rest period for an employee from 11 to 8 hours
    (with a guarantee that the employee will be given equivalent rest over a period of 8 weeks) and the reduction of the weekly rest period from 35 to 32 hours
  • the conclusion of an agreement with trade unions or employees’ representatives on the introduction of a system of equivalence with the possibility of extending the daily working time to 12 hours and the settlement period to 12 months
  • the conclusion of an agreement to apply less favourable terms and conditions of employment to employees than those resulting from the employment contract concluded with those employees to the extent and for the duration specified in such agreement.

Remission of employer’s social security contributions up to 9 insured persons

Companies which report up to 9 persons to the social security may apply for a remission of unpaid social security contributions for the period from March to May 2020. The above solution applies to the payers of contributions who had been operating before 1 February 2020 and had been reporting to social security a maximum of 9 employees as at 29 February 2020.

The above support constitutes public aid.

Remission of social security contributions for self-employed

Companies which report up to 9 persons to the social security may apply for a remission of unpaid social security contributions for the period from March to May 2020. The above solution applies to the payers of contributions who had been operating before 1 February 2020 and had been reporting to social security a maximum of 9 employees as at 29 February 2020.

The above support constitutes public aid.

Special unemployment payment for persons performing civil law contracts

If, as a result of COVID-19, the civil law contract did not come into effect or its performance was limited, then in connection with the stoppage, a one-time special unemployment payment of a maximum of PLN 2,080 can be made. The conditions for obtaining the payment are as follows: the contract was concluded before 1 February 2020, the person does not have any other title to social security and the criterion of revenue is met.

Special unemployment payment for self-employed

Self-employed, i.e. persons carrying out non-agricultural activity, who–as a result of COVID-19–experienced a stoppage, may apply for a one-time special unemployment payment in the amount of PLN 2,080 or PLN 1,300.

The conditions for obtaining the payment of PLN 2,800 are as follows: the self-employed person had been carrying out business activity before 1 February 2020, does not have any other title to social security and the criterion of revenue is met.

In addition, self-employed persons who had been operating before 1 February 2020, but suspended their activity after 31 January 2020 and met the criterion of revenue, will also be entitled to the special unemployment payment.

Self-employed persons taxed in the form of a tax card, exempt from paying VAT and having no other title to social security, will receive a special unemployment payment of 50% of the minimum wage, i.e. PLN 1,300 without satisfying the criterion of revenue.

Co-financing of a part of the wage costs–aid granted by “starostes” (district governors) 

An entrepreneur who is a natural person with no employees, in the event of a decrease in turnover of at least 30%-80% as a result of COVID-19, may be granted a co-financing to cover a part of the business overhead costs between 50% and 90% of the minimum wage.

Low-interest loan from the Labour Fund for micro-entrepreneurs

The loan may be used by micro-entrepreneurs who are referred to in Article 7(1)(1) of the Act of 6 March 2018 and who had been carrying out their business activity before 1 March 2020. The loan is supposed to cover the current business overhead costs. Low-interest loan up to PLN 5,000, including the possibility of its remission.

Other regulations

Extended deadline to submit the annual PIT return and extended payment deadline for PIT4

  • No sanctions for filing the annual PIT return and paying the tax for 2019 after the deadline, if completed by 31 May 2020.
  • Extended deadline for the tax remitters to pay tax advances on salaries relating to March and April 2020.

State Fund for Rehabilitation of Disabled Persons

  • a relief in payment by deferring the payment deadline or spreading it into instalments;
  • an increase of the co-financing of the salaries of disabled employees.

Support by the Social Security Institution (ZUS)

Reliefs in respect of the payment of social security contributions without the extension charge–deferred payment or arrangement for payment in instalments of the amounts due for contributions for the given entrepreneur and persons working for them. It does not matter when the tax remitter started to carry out their business activity. The size of their company is also irrelevant.

The relief is available to all entrepreneurs who do not meet the requirements for the remission of social security contributions.

Changes concerning the deadlines for the Employee Capital Plans (PPK)

The deadlines for the implementation of the PPK for employers being in the second phase of the PPK implementation have changed. The new applicable deadlines for employers who had at least 50 employees as at 30 June 2019 are as follows:

  • 27 October 2020–to sign the PPK management agreement,
  • 10 November 2020–to sign the agreement on running the PPK.

News:

According to the gov.pl portal in the news 100 mld zł trafi do kieszeni polskich firm na ochronę miejsc pracy w ramach Tarczy Finansowej

News from 8th April 2020: Up to 670,000 Polish companies will benefit from the new programme addressed to companies affected by the coronavirus pandemic. Its aim is to protect the labour market and ensure financial liquidity during the crisis. The financial shield consists of components with a total value of PLN 100 billion (4.5% of GDP):
– micro companies (employing at least one employee) will receive PLN 25 billion,
– to small and medium-sized companies – PLN 50 billion,
– to large enterprises – PLN 25 billion.
The entities that will benefit from the programme will receive a total of non-refundable funds worth PLN 60 billion.
Funding for micro, small and medium-sized enterprises under the Financial Shield will be paid out simply and quickly through banks.
Financing for large enterprises will be individual in nature and will cover both debt financing and equity exposure. In the case of these companies, the investment component has a larger share and a smaller one a non-returnable one. Their financing will be handled directly by the PFR – Polish Development Funds

If your company is considering restructuring, we encourage you to read our previous entry: Restrukturyzacja w dobie koronawirusa