My turnover has not fallen. Can I obtain exemption from 50% of social security contributions?
The legislature has not made exemption from all or part of social security contributions conditional on a decline in business turnover. This also applies to employers registering between 10 and 49 employees for insurance.
My client refused to submit my standstill benefit application. Can I use the Anti-Crisis Shield measures?
Contractors may receive a standstill benefit subject to conditions. There must have been a standstill at the client or commissioning party. The contractor applies through the client. The Act provides no special procedure if the client refuses to file. However, unlawfully refusing to forward the application and supporting documents to ZUS may cause loss to the contractor where the client has reduced the scope of the assignment and pay. Consider whether the client is liable in damages. To preserve a possible compensation claim, submit the application to the client even if told it will not be forwarded. Then formally request that it and the required documents be sent to ZUS, warning that compensation for loss caused by the omission will otherwise be sought.
I employ one seasonal worker. Can I apply for a Labour Fund loan under the Anti-Crisis Shield?
Shield 2.0 removed the requirement to employ at least one person to obtain a Labour Fund loan. Businesses employing staff only seasonally may also apply.
I applied for a Labour Fund loan before Shield 2.0 took effect. What will be the condition for forgiveness?
Under the amending Act, forgiveness of all such loans requires continued business activity for three months from the date the loan is granted. Maintaining employment is not required. This also applies to loans granted or applied for before Shield 2.0 took effect.
Does a Labour Fund loan prevent me from receiving another standstill benefit?
A loan is not revenue for tax purposes. If the business’s situation has not otherwise improved, it may claim the benefit again. When combining Anti-Crisis Shield measures, remember the central rule: different support funds cannot be used for the same purpose. A Labour Fund loan should not cover employment costs already supported by other funding.
How long must I have been operating to qualify for a Labour Fund loan? Is a minimum of 14 months required?
The loan is available to businesses operating before 1 March 2020. There is no requirement to have operated for 14 months.
I operate a currency exchange business with high turnover. How should ‘or’ in the definition of microenterprise be understood when assessing eligibility for a Labour Fund loan?
A microenterprise must meet two conditions. First, average annual employment must be fewer than 10 people. Second, there is a test of annual turnover or total balance sheet assets. In legal language, ‘or’ is inclusive: meeting either limb of the second condition is sufficient. The first limb requires annual net turnover from goods, products, services and financial operations not to have exceeded the PLN equivalent of EUR 2 million in one of the previous two financial years. The second requires total balance sheet assets at the end of one of the previous two financial years not to exceed that amount. A high-turnover currency exchange business may therefore be a microenterprise, provided it meets the employment condition, if its balance sheet in one of the last two years showed total assets not exceeding the PLN equivalent of EUR 2 million.
My February revenue fell 45% from January, then rose 2% in March from February. Can I apply for a standstill benefit in March?
For the revenue-decline test applicable to the standstill benefit, the month before the application month was compared with the preceding month. A March application would compare February with January; an April application would compare March with February. In the example, the March increase meant that an April application would not meet the requirement for a decline of at least 15%. A revenue decline alone did not establish entitlement: the other conditions then in force also had to be met. The separate business-cost support scheme compared two months after 31 January 2020 with the corresponding period in 2019.
My revenue was PLN 20,000.00 in February but only PLN 1,000.00 in March. Can I claim a standstill benefit?
The historical revenue cap applied to the month before the application month, not to the application month itself. An April application therefore used March revenue. The cap was subsequently removed for self-employed applicants; that change should not be confused with the rules for people working under civil-law contracts. The other eligibility conditions required a separate assessment.
Net or gross revenue: which determines eligibility for Anti-Crisis Shield assistance? Please identify the source.
Where assistance depends on revenue, the Shield refers to business revenue as defined for income tax purposes. Under Article 14(1) of the PIT Act, this means amounts due, even if not actually received, excluding the value of returned goods, rebates and settlement discounts. For VAT-taxable sales, revenue is reduced by VAT due. The relevant figure is therefore net revenue after deducting VAT charged.
I receive maternity benefit. Can I claim a standstill benefit?
ZUS may award a standstill benefit if the applicant is not subject to social insurance on another basis. Maternity benefit is a separate, compulsory basis for social insurance. In our view, it therefore excludes eligibility for a standstill benefit.
I receive sickness benefit. Can I claim a standstill benefit?
Sickness benefit is income from other sources, not business revenue, and is excluded when calculating revenue for standstill benefits. It is not itself a basis for social insurance either, so receiving it does not exclude a standstill benefit. However, the business standstill must result from COVID-19. If it resulted solely from illness, the benefit is unavailable. Remember also that recipients must not be subject to social insurance on a basis other than a services agreement or business activity.
I receive carer’s allowance. Can I claim a standstill benefit?
Carer’s allowance is income from other sources, not business revenue, and is excluded when calculating revenue for standstill benefits. It is not itself a basis for social insurance either, so receiving it does not exclude a standstill benefit. However, the standstill must result from COVID-19. If it resulted solely from pausing work to provide care, the benefit is unavailable. Remember also that recipients must not be subject to social insurance on a basis other than a services agreement or business activity.
Where can I find the declaration that my financial situation has not improved, required for a further standstill benefit?
On 7 May 2020, ZUS published forms RSP-DK and RSP-CK. The first is for entrepreneurs claiming the benefit for another period; the second is for contractors. They are available on ZUS PUE and zus.pl. Form RSP-DK is available here, and form RSP-CK here.
Where can self-employed people apply for an Anti-Crisis Shield loan?
Submit a Labour Fund loan application to the district labour office responsible for the place of business. Online applications can be made on this website
Should I report my standstill benefit in the information form for aid compensating for COVID-19’s adverse economic effects, attached to a Labour Fund loan application?
The COVID-19 Act lists the measures constituting state aid to compensate for adverse economic effects of COVID-19. Standstill benefits are not listed, so they should not be entered in the form.
Can an employer with 10 employees receive a standstill benefit after a 15% fall in revenue?
A sole trader employing 10 people may receive the benefit. Shield 2.0 abolished the revenue cap for the month in which revenue fell, so such businesses have increasingly qualified since it took effect.
If I have suspended my business, can I use Anti-Crisis Shield assistance?
The position of businesses that suspended operations depends on the dates of suspension and resumption and the form of assistance.
Standstill benefit
The benefit is available to a person who started or resumed business before 1 February 2020. It is not available to someone who suspended business before 31 January 2020.
Business operating cost support
Business must be resumed early enough to compare turnover from goods or services over two months after 31 January 2020 with the corresponding period of the preceding year. A business that resumed at least two months or 60 days before applying may therefore qualify. Recipients must continue operating throughout the funding period. Suspension during that period requires repayment.
Partial employment cost support
Business must be resumed early enough to compare turnover from goods or services over two months after 31 January 2020 with the corresponding period of the preceding year. A business that resumed at least two months or 60 days before applying may therefore qualify. Employment must be maintained during funding, so business cannot be suspended.
ZUS contribution exemption
Suspending business removes the entrepreneur from the register of ZUS contribution payers. Exemption is available to a business registered as a payer: (1) before 1 February 2020 and on 29 February 2020; (2) between 1 and 29 February 2020 and on 31 March 2020; or (3) between 1 and 31 March 2020 and on 30 April 2020. It may therefore be claimed if operations resumed by 31 January and were not suspended through 29 February or 31 March 2020, or resumed by 29 February 2020 and were not suspended through 30 April 2020.
Microenterprise loan
The loan covers ongoing business costs. The business must have operated before 1 March 2020. Forgiveness requires continued activity for three months after the loan is granted. This suggests that a person who suspended business or had not resumed it by 29 February 2020 inclusive will not qualify. If the business became ‘active’ only on 1 March 2020 or later, the loan will not be available.
Financial Shield
Subsidies from Polski Fundusz Rozwoju S.A. are intended for microenterprises operating on 31 December 2019. The business should therefore have remained ‘active’ from that date. Applicants must employ at least one person. The subsidy is partly non-repayable if employment is maintained. It should therefore be assumed that suspending business within 12 months of the award will require repayment of 100% of the subsidy.
I am self-employed but incur no business costs. Can I use Anti-Crisis Shield assistance?
Standstill benefit
Standstill benefit is not intended to cover business costs and may be used for any purpose. A business with no operating costs can therefore receive it.
Business operating cost support
This form of assistance may be used only to cover business operating costs. It is unavailable if no such costs are incurred.
Partial employment cost support
Not applicable to the self-employed.
ZUS contribution exemption
The Act does not make social security contribution exemption conditional on incurring business costs. A self-employed person without such costs may therefore obtain it.
Microenterprise loan
This form of assistance may be used only to cover business operating costs. It is unavailable if no such costs are incurred.
Financial Shield
The Financial Shield is for businesses with at least one employee, so self-employed persons will not receive a PFR subsidy. In all cases, the subsidy can be used only for business costs or early loan repayments, the latter up to 25%. A business without operating costs will therefore be unable to spend the subsidy funds.
These answers do not constitute legal advice. Determining whether, to what extent and how a particular business can use Anti-Crisis Shield measures requires a detailed analysis of its legal position in every case..
We answered some questions in the article available here.
We will endeavour to answer more questions in subsequent articles in the ANTI-CRISIS SHIELD: FREQUENTLY ASKED QUESTIONS series.
We also invite you to download part two of our practical guide to the measures introduced by the legislation known as Anti-Crisis Shield 2.0, available here.
