Jolanta Olszewska Economic Consulting Office
  • Home
  • About us
  • Services
    • Accounting Services >
      • Accounting
      • Accounting Supervision
      • Emergency Accounting
    • Payroll Services >
      • HR and Payroll
      • Payroll Supervision
      • Emergency Payroll
    • Economic consulting
  • Contact
  • Blog

HOW TO CHOOSE THE FORM OF BUSINESS TAXATION (INCOME TAX)?

5/9/2013

0 Comments

 
In the moment of establishing business comes a question, which form of taxation to choose. Which register should I keep? The answer depends on several factors.

First of all we have to look at the legal form – if it is Limited Liability Company, the company will be taxed on corporation income tax. In this case you must also provide accounting books. But if you will act as a proprietorship, you have several options to choose: karta podatkowa (tax card), ryczałt od przychodów ewidencjonowanych (tax from registered revenue), PIT na zasadach ogólnych (PIT on general principals), PIT liniowy (line PIT).

Karta podatkowa – fix tax rate. It depends on place of business and quantity of employees. When city is bigger and the quantity of employees is higher, the tax rate is higher. You don’t submit any declaration and pay tax monthly till the 7th day of month for previous period. The only declaration you have to submit concerns to health insurance deducted from tax. This form doesn’t require keeping any register, except of the employees register and theirs salary statements. From the proprietorship point of view is the most convenient option. Unfortunately only a small group of people can apply it, for example cosmetic services, hairdresser, tailors. Moreover you have to pay tax even if there was no sale in the month. You may lose the right  to use this method for example in a case of too high employment.

Ryczałt od przychodów ewidencjonowanych – tax is paid on revenue, it means sales and other amounts received such us interests received on cash held in a bank accounts. Tax rate (20%, 17%, 8,5%, 5,5%, 3%) depends on type of service you provide. You have to keep the register of revenue, fix assets, intangible assets, equipment and employees. An disadvantage of this form of taxation is limited access and depends of the kind of service provided. You may also lose the right to use this method for example if your revenue generated in last year from this activity, carried out exclusively by yourself, exceeds 150,000 euros. Is a good option for those who have small costs (for example no employee costs). In contrast to karta podatkowa eliminates the problem of irregulars revenues.

PIT na zasadach ogólnych – this is a default form of taxation. If you don’t choose any option or you don’t report another one on time to Tax Office, this one will be applied. Tax is paid on income (revenue – costs) and the tax rate is 18% and 32% and depends on the amount of income (tax scale). In this case you can settle tax with your spouse and take advantage from many income and tax deductions. You have to keep book of income and expenses (podatkowa księga przychodów i rozchodów), but if your net revenue from previous year was at least 1.2 million euros you have to keep accounting books. Advance tax is paid monthly or quarterly and the finally settlement of the tax is yearly. Is a good option for those you can’t choose previously described method and at the same time don’t predict too high income in this year. Unfortunately not each expense is deductible.

PIT liniowy – tax is paid on income (revenue – costs). Fix tax rate – 19%.  You can’t settle tax with your spouse and take advantage from income and tax deductions. The register you keep on the same way as PIT na zasadach ogólnych. Advance tax is paid monthly or quarterly and the finally settlement of the tax is yearly. Is a good option for those who predict high income because of flat tax rate. You can’t use this option if you provide a service for your previous employers in the same range as in contract of employment.

To sum up, the answer for a question, which type of taxation to choose when you act as proprietorship, is in your business plan. If it assumes lack of employees and the work is mainly made by yourself, law purchase costs (in relation to the revenue), it’s better to think about karta podatkowa or ryczałt od przychodów ewidencjonowanych, only if your activity qualifies to applies those method. But if in your plan you predict high cost in relation to the revenue, it’s better to apply PIT, because the base of taxation will be lower. It would be the best to make a simulation of the tax payable basing on you predicted revenue and costs. This will help you to choose rational the method of taxation.

Małgorzata Olszewska
0 Comments

September 02nd, 2013

2/9/2013

0 Comments

 

THE WORKING TIME AFTER LAW CHANGES - FROM 23.08.2013

From 23.08.2013 new regulations about working time came into force. What does it mean for employers? – particularly new regulations formalize matters connected with flexible management of working time.
1. Longer settlement period in every working time system
The settlement period can be extended even by 12 months. Within such settlement period, longer work can be balanced by periods of shorter work or days off. If in some month the worker won’t have a duty to perform job according to his work schedule in accepted settlement period, he shall be entitled to receive salary in the amount not lower than minimum wage.

To introduce the settlement period of 12 months, the employer must wait until currently settlement period will finish!                                                   

2. Mandatory work schedules
From the day when new regulations came into force, employers have a duty to make work schedules. It can be made in writing or electronically for the time shorter than the settlement period, but included at least 1 month. The employer must give this work schedule at the latest 1 week before the period of schedule will start. The article 129 § 4 of the Labour Code specifies some situations when the employer doesn’t have to make work schedules. It takes place when for example the work schedule results from an employment contract, work regulations, collective agreements, announcement or when a worker is obliged to work in flexitime system, by his motion.

3. The work flexitime – the lack of permanent hour of work beginning
According to new regulations, the employer can introduce the work flexitime in a company (the article 1401 of LC). There is no separate working time system, but specific form of every working time system, in which a worker is employed. The employer can act in 2 ways:
  • to settle work schedules predicted varius hours of work beginning in the worker’s work-days, or
  • to determine the time interval, in which a worker should start job.

In both cases there can be some situations, in which a worker would start job in the next day earlier than the previous day, but repeated performing job in the same day and night is not the overtime work in these cases. However you must remember that performing job, according to the aforesaid work schedules, can’t prejudice to worker’s right to rest.

When does the overtime work appear using the work flexitime system?
  • when the employer will commission to work in higher daily working time than this one which results from work schedule, or
  • when the employer will oblige workers, performing job within work flexitime, to start job 1 hour earlier than it would result from their work schedule.

4. The working off a leaving work for private purposes is not the overtime work!
The article 151 § 21 of Labour Code makes easier for the employer to give consent for the employee to work off a leaving work which was granted on his written motion for private purposes. According to new regulation, the working off such leaving work is not the overtime work.

5. The interrupted working time system is available for greater group of employers
This working time system can be introduced even though there is no collective agreement in a company. For example you can introduce it by virtue of the agreement with the trade union organisation within the company or by agreement with the employees' representatives.

Katarzyna Błaszczyk
0 Comments

September 02nd, 2013

2/9/2013

0 Comments

 

WORKING MOTHER

How many days of maternity leave the working mother can use before planned date of childbirth?
Not more than 6 weeks.

Can the working mother resign from basic maternity leave and return job?
Generally - no, she can’t, but there are some exceptions to this rule:
  • mother, after using at least 14 weeks of basic maternity leave after childbirth, has the right to resign from its remaining part by her written motion, with the restriction that father of that child uses this remaining part by his written motion,
  • mother of child, after using 8 weeks of basic maternity leave, breaks off such leave and returns job for the period in which her child is sick and stays in the hospital,
  • the working mother returns job after at least 8 weeks of basic maternity leave if she resigns from upbringing and gives that child away to other person for adoption or to the little children’s home.

Does maternity allowance concern only women employed under an employment contract?
No, the right for this allowance is not only for woman employed under an employment contract, but for all insured women, who give birth to a child during their sickness insurance (for example the woman who performs work under contract of mandate and is subject to mandatory retirement and disability insurances and voluntary sickness insurance).

How many days the basic maternity leave, additional maternity leave and parental leave include?
  • Basic maternity leave – 20 weeks (1 child at 1 childbirth), 31 weeks (2 children at 1 childbirth), 33 weeks (3 children at 1 childbirth), 35 weeks (4 children at 1 childbirth), 37 weeks (5 and more children at 1 childbirth),
  • Additional maternity leave – max 6 weeks (1 child at 1 childbirth), max 8 weeks (more than 1 child at 1 childbirth),
  • Parental leave – max 26 weeks (regardless of the number of born children).

When does the maternity allowance entitle in the amount of 80%, 100% and 60% and what does this amount determine?
If the employee files an application (not later than 14 days after childbirth) to the employer for granting full time additional maternity leave directly after basic maternity leave and directly after that – full time parental leave, during all that time the amount of maternity allowance will be 80%. If the working mother doesn’t file such application, the amount of allowance will be 100% for the period of basic and additional maternity leave and 60% for the period of parental leave.

Can the working mother resign from additional maternity leave/parental leave although she files an application for granting these full time leaves in the period of 14 days after childbirth?
She can resign from the whole or some part of these leaves if she files written motion at least 14 days before that.

Can the employer reject an application for  additional maternity leave or parental leave?
No, all of that applications must be accepted by the employer.

Can the working mother use additional maternity leave/parental leave and perform job for the employer at the same time?
Yes, she can, but it is possible when she will perform not more than the half of full time job. In such situation, additional maternity leave/parental leave is granting for the remaining part of workload.

Can the employer reject the possibility of connecting additional maternity leave/parental leave with performing job to the working mother?
The employer should accept working mother’s application unless it is impossible due to job organization or the kind of performed job. The employer must inform the worker about the reason why he refuses accepting an application in writing.

Can the working mother take a holiday leave in the case of connecting additional maternity leave or parental leave with performing job at the employer granting such leave in the workload not more than the half of full time job?
Yes, she can. The length of this leave won’t be reduced because the employment contract is the same (through the half of that employment the working mother will work and through the next half she will use additional maternity leave/parental leave). What is more in that time she can use also outstanding leave.

What kind of social insurance contributions the employer should pay for the working mother who is on additional maternity leave/parental leave and performs job at the same time?
The worker who connects additional maternity leave, additional leave on terms maternity leave or parental leave with performing job at the employer granting such leave, subjects to mandatory retirement and disability insurances, from both title.

Can additional maternity leave be used in parties?
Additional maternity leave can be granted once or in 2 parties: one directly after the next one, in the length of week or its multiple (for example: mother uses whole 6 weeks or first 4 weeks is for mother and the next one is for father).

Can parental leave be used in parties?
Parental leave can be granted once or in maximum 3 parties: one directly after the next one, from which every part lasts at least 8 weeks and is the multiple of week (for example: whole leave is used by father or 8 weeks is used by mother, the next 8 weeks by father and the next 10 weeks by mother).

Can both parents use parental leave at the same time?
Yes, but the total length of this leave can’t be more than 26 weeks (at the same time both parents can use such leave through maximum 13 weeks: 13 weeks of parental leave by mother and 13 weeks of parental leave by father).

Can both parents use additional maternity leave at the same time?
No, that leave can be only shared between parents.

Can the employer terminate an employment contract of the working mother using maternity leave/parental leave?
No, he can’t. But such termination notice can be delivered by the working mother who uses such leaves, also in that moment when the period of notice falls during such leave.

Does every worker have the right to a child rearing leave and what is the time limit of its granting?
A child rearing leave can be used by worker who is employed at least 6 months. Previous periods of employment are included in these 6 months. This leave is entitled in the length of until 3 years, for the purpose of personal taking care of the child, not longer than that child will be 5 years of age.

Katarzyna Błaszczyk
0 Comments

THE WORKING FATHER

2/9/2013

0 Comments

 
The rules concerning sharing leaves or performing job in the time of using leaves connected with parenthood, are the same as in the case of the working mothers. The article is for completing information concerning the working father strictly.

What kind of leaves can be used by the working father?
  • from the part of basic maternity leave in the case of resignation from some part of that leave by the mother of child (a mother must use at least 14 weeks),
  • from additional maternity leave in full time or by sharing it with the mother of child,
  • from parental leave in full time or by sharing it with the mother of child,
  • from paternity leave,
  • from child-rearing leave.

From what kind of leaves the father of child can use when the mother of child hasn’t the right to use maternity leave?
He can use paternity leave or child-rearing leave.

In what cases the father of child may use the part of basic maternity leave?
  • when the mother of child will use at least 14 weeks of that leave and resign from remaining part,
  • when after 8 weeks from childbirth the mother of child needs hospitalization, the father of child can take over some part of that leave for the time of mother’s hospitalization.

Can the father of child use paternity leave or child-rearing leave after using the part of basic maternity leave?
Yes, he can, but in such situation he won’t be able to use additional maternity leave and directly after that – parental leave, because in this case the requirement of directly following leaves: additional maternity leave after basic maternity leave won’t be kept.

Can the working father use paternity leave in the time of using basic maternity leave, additional maternity leave or parental leave by mother?
Yes. That leave is entitled from the moment of childbirth to that one when the child is 1 year of age.

Can the working father use child-rearing leave in the time of using basic maternity leave, additional maternity leave or parental leave by mother?
Yes, if the employment of the father is at least 6 months.

Katarzyna Błaszczyk
0 Comments

    BLOG ABOUT
    THE LAW IN POLAND

     

    Archives

    May 2014
    March 2014
    November 2013
    September 2013
    July 2013

    Categories

    All
    Corporate Income Tax (CIT)
    Human Resources
    Personal Income Tax (PIT)

    RSS Feed

Powered by Create your own unique website with customizable templates.