One of the most important obligation of an employer is the payment of tax liabilities and social insurance contributions. The employers have to ensure that the liabilities to the authorities will be paid timely and in the correct amount. In these cases the authorities have no disclosure obligations. Certainly they will get in touch to receive default interests.
For the payment of public liabilities every entrepreneur must note the following dates:
- Until the 10th day of the following month payment of social insurance contributions in their own name (if there are employees, until the 15th day of the following month).
- Until the 25th day of each month that follows the settlement period (month or quarter), the VAT declaration must be submitted and the resulting VAT liability has to be paid.
- Until the 20th day of the month that follows the settlement period (month or quarter), the corporate tax pre-payment has to be paid (if the tax assessment results in a liability). In this case it is not necessary to submit any tax registrations.
How to pay taxes and social insurance contributions in time?
Regardless of the method in which the payment shall be made to the government, the deadlines are very important. In accordance with the provisions of the payment deadline of the tax shall be the date of debiting the account of the taxpayer. In other words – the business has to ensure that on the last day of the tax payment period his bank balance is reduced by the due tax amount.
For cash payments, the day on which the payment was carried out shall be the day of payment. If the last day of the tax payment period is a non-working day (Sunday or public holiday), then the tax payment period moves to the next working day.
Please note the significant difference between public liabilities and private liabilities, arising from invoices or contracts with business partners. For private settlements the day of crediting the bank account of the recipient (i.e. the day he views the amount) shall be the day of payment. For public liabilities the day the payment is debited is critical.
Consequences of not on-time payments
Taxes and contributions should be paid on time and be the correct amount. Late payments or incomplete payments of the due amount can result in default interest on tax liabilities, in a fine or even in a judicial debt collection.
Default interests are payable for the period beginning with the day that follows the last day of the settlement and ending with the day of payment carried out. If these default interests are not exceeding the amount of PLN 8.70 they have not to be paid.
Particularly difficult may be the consequences for not paying social insurance contributions on time. The employer would face the following consequences: Default interests on tax liabilities. Non-payment of health insurance contributions causes termination of benefits from the public health system (NFZ). For the visit of a so-called public health centre or for a hospital stay the employer has to pay out of his own pocket.
Late payments of sick days allowance insurance causes in termination of all benefits from these insurance (i.e. sickness benefit, maternity benefit, care benefits and rehabilitation services). In some cases the benefits can be renewed.