Debt with ZUS - what to do

Debt with ZUS - what to do

If you have a Social Security debt, it is important to take prompt action to pay it off. Remember that ZUS does not have to go to court for a payment order or judgment to enforce the contributions owed.

Debt with ZUS - effects 

If an entrepreneur does not pay contributions on time, pays only part of the obligation or does not do it at all, ZUS first sends a reminder. If, after the reminder, the payment is still not received, it can immediately proceed to enforcement. This enforcement can be carried out almost immediately, as ZUS has the power to issue a title on its own, based on which it will seize bank accounts, salaries and, in the worst cases, even cars or real estate. 

What to do in such a situation? 

I. Disbursement in instalments of Social Security contributions

How do I spread my Social Security contributions in instalments?

Your first step should be to contact Social Security to find out exactly how much you owe. You can do this:

• In person, by visiting your local Social Security branch.
• By telephone by calling the ZUS helpline.
• Over the Internet, using the Platform for Electronic Services (PUE ZUS).

If, once you have this information, you decide that you cannot repay the debt in full at once, you can apply for an instalment plan. This solution allows you to repay your debt systematically in smaller, regular amounts. 

What should a request for installment of Social Security contributions contain? 

Wniosek można złożyć pisemnie lub elektronicznie, a powinno się w nim zawrzeć:

• request for instalments, 
• a detailed justification of the reasons for the arrears and a justification of the feasibility of a possible arrangement,  
• a proposal for a repayment schedule, 
• relevant documents and forms documenting the asset situation. 

It is advisable to consult a lawyer when preparing your application. A specialist will help you negotiate with ZUS, prepare applications, documents and advise you on how best to resolve the debt.

How many instalments can arrears in Social Security be spread over? 

It all depends on the amount of the commitment and financial capacity. The regulations do not stipulate a minimum or maximum number of instalments or their amount. The instalments do not have to be equal either, the arrangement may provide for low instalments at first and then a so-called balloon payment if it is expected that a significant cash inflow will be received in some time.  

How long does the instalment decision process take? 

An application for an instalment of dues should be recognised within 14 days of the date on which the necessary documentation is completed, but no later than within 2 months of the date on which the application is submitted. In order for the application to be recognised as soon as possible, it should contain all the documentation right away, so it is advisable to consult a specialist. 

Can a negative decision by the Social Security Administration be appealed? 

Yes! If the Social Insurance Institution refuses to approve the instalment of contributions and the arrangement, you may request the Social Insurance Institution to reconsider the case within 7 days of receiving a negative response to the request. 

II. Remission of contributions 

Writing off all or part of your Social Security is a process that can allow you to be relieved of your obligation to pay outstanding contributions. 

However, this is only possible in exceptional cases and under certain conditions. 

ZUS can write off all or part of the contributions if certain conditions are met: 

- there is no possibility of collecting the debt, e.g. ZUS considers that there is no possibility of collecting the debt, e.g. due to lack of assets 

Or 

- there is a particularly difficult life or material situation, e.g. serious illness, loss of job, fortuitous events

Jak pozbyć się długu w ZUS? 

To apply for remission of contributions, you must submit a request to the Social Security Administration. 

The application should include:

• Personal data: name, surname, PESEL/NIP number, address of residence.
• Specify the exact contributions for which you are seeking remission: e.g. social security contributions, health insurance contributions, Labour Fund.
• Reason for request: detailed explanation of the situation that prevented the repayment of arrears. 
• It is advisable to include documents confirming the difficult situation (e.g. medical certificates, benefit decisions, income information).

What documents confirming the difficult situation should be attached to the application for cancellation of ZUS contributions? 

Your application must be accompanied by documents that prove your difficult financial or living situation. These may include:

• Medical certificates if the reason is health problems.
• Documents proving low income (e.g. PIT, certificate from the tax office).
• Documents confirming the family situation (e.g. death certificate, divorce decree).
• Other documents that can document the application.

How do I apply to ZUS for remission of contributions? 

An application for remission of contributions can be made:

• In person: at the nearest ZUS branch.
• By post: by sending the application by registered mail to the address of the relevant ZUS branch.
• Via the Internet: using the Platform for Electronic Services (PUE ZUS).

How long do you wait for decisions on remission of ZUS contributions? 

ZUS considers applications for remission of contributions on a case-by-case basis, taking into account the circumstances of the individual case. The time taken to process an application may vary depending on the complexity of the case and the number of documents to be analysed. Once the application has been processed, you will receive a decision in writing.

Is it possible to appeal against a negative decision of the Social Security Administration to write off contributions?

Yes, within 14 days of receiving the refusal decision, you may submit a request for a review of the case by the president of the Social Security Board. You submit the application through the branch of the Social Insurance Institution which refused remission. 

II. What are the penalties for debts with ZUS? 

Debt to the Social Security Institution can lead to serious consequences, both financial and legal. The main consequences that may be faced by a person who fails to settle a debt to the Social Security Institution are: 

1. Calculation of interest on arrears

ZUS charges interest for each day of delay in the payment of contributions. This interest can significantly increase the amount of the debt, which can make it difficult to repay. The rate of interest for late payment is set in accordance with the law and is updated depending on interest rates.

2. debt enforcement

If the debt is not paid voluntarily, ZUS may initiate enforcement proceedings. 

Enforcement may include:

– zajęcie rachunku bankowego – ZUS zleci blokadę środków na koncie bankowym 

- salary seizure - the Social Security Administration can seize part of your salary or other income, such as pension, annuity or business income.

- Asset seizure - Social Security may seize and sell assets in the form of, inter alia, real estate, vehicles, equipment in order to cover debts.

3 Criminal liability

In extreme cases, especially if the debt is the result of deliberate avoidance of contributions, criminal liability can be pursued.

Pursuant to Article 98(1)(1a) of the Social Insurance System Act, a person who fails to fulfil the obligation to pay social insurance contributions within the prescribed period is liable to a fine of up to PLN 5,000.

In some cases, deducting contributions from an employee's salary and failing to remit them to the Social Security Institution may qualify as a misappropriation offence, which is punishable by imprisonment for up to three years under Article 284 of the Criminal Code. 

4 Negative impact on creditworthiness

Debt with ZUS może negatywnie wpłynąć na zdolność kredytową, co utrudni uzyskanie kredytów, pożyczek lub leasingu. Banki i instytucje finansowe mogą odmówić udzielenia finansowania, jeśli dowiedzą się o zaległościach w ZUS.

IV. When is the statute of limitations on Social Security contributions? 

As a general rule, dues for contributions, pursuant to Article 24(4) of the Social Security Act, are time-barred after a period of five years, counting from the date on which they became due. 

V. Summary

Social Security debt can be resolved by taking the right steps and working with Social Security to find the best solution. Acting quickly, making regular repayments and taking advantage of the tools available to you, such as debt relief, can help you get out of a difficult financial situation.