Please find below the most important, in our opinion, changes and planned changes in legislation related to payroll and HR for Q3 2022.
Payer released from collection of PIT advances from the employee’s revenues
Starting from 1 January 2023, each employee will have the opportunity to file an application
to refrain from collecting PIT advances if their estimated income throughout the year does not exceed PLN 30 000. If the amount of PLN 30 000 is exceeded, the employer will collect a PIT advance from the surplus without decreasing it by an amount decreasing a PIT advance.
Entry into force of the new Labour Code legislation postponed to 1 January 2023
According to what is announced by the Government representatives, amendments to the Labour Code pertaining to, among others, new regulations in the employment contracts, additional care leave or days off work in urgent family matters are to be entered into force from 1 January 2023
at the earliest.
PIT advances calculated twice in certain circumstances
As from 1 July 2022 a general rule of double calculation of PIT advances was supposed to disappear. However, despite changes introduced by the Polish Order 2.0, the Article 83 sec. 1 and 2b of the Act of 27 August 2004 on Publicly Funded Healthcare Benefits remains in force. These regulations stipulate that if an amount of a health contribution exceeds the PIT advance calculated based on the rules binding as at 31 December 2021, the payer should decrease this contribution accordingly (up to the amount of the advance). In practice, it means that when employees gain relatively low income, the payer must, in order to calculate a health contribution, continue to calculate the PIT advance twice.
Further changes to business trips as from 1 January 2023
As from 1 January 2023, another amendment to the Regulation of the Minister of Labour and Social Policy on amounts due to employees of state or local government budgetary units for business trips is to be promulgated. The goal of the project is to increase the amount of a daily allowance for domestic business trips by PLN 7, i.e. up to PLN 45, which will automatically translate into an increased refund of accommodation expenses during domestic business trips being an equivalent of 20 times a daily allowance, i.e. up to PLN 900, and an increased flat-rate overnight allowance during domestic trips which is equal to 150% of a daily allowance, i.e. up to PLN 67.50. The draft of the Regulation also provides for a change in an amount of a daily allowance for foreign business trips to certain countries. The allowance will be increased for business trips to: Austria, Belgium, France, Norway, Slovakia, Slovenia, Sweden or Italy.
Deadline for the second instalment of a contribution to the Company Social Benefit Fund (pl. ZFŚS) for 2022
Employers who are required to set up the CSBF must make a second instalment of the contribution to the Fund by the end of September 2022. The second instalment covers 25% of the basic contribution accrued by voluntary increases.
Position of the Personal Data Protection Office on copying ID documents by financial institutions
Pursuant to Article 112b of the Banking Law Act of 29 August 1997 (Journal of Laws 2021.2439), banks are allowed to process data contained in the ID documents of natural persons for the purposes of their banking activity. According to the PDPO, this right does not entitle these institutions to make copies of the ID documents, but only allows to process personal data contained therein. In turn, to verify the data, it is sufficient to present the ID document for inspection.
Notification to an employer of a discontinuation of payments for an employee to the Employee Capital Plans (pl. PPK)
Following an amendment to the Act on Principles of Implementation of Tasks Financed from European Funds in the Financial Perspective 2021-2027 (Journal of Laws of 2022, item 1079), new regulations come into force starting from 21 November 2022. Namely, the Polish Development Fund (pl. PFR) will notify all employers by means of financial institutions responsible for keeping the accounts of a given PPK participant that funds gathered on one of their accounts have started to be paid out.
If funds from one of PPK accounts kept by a PPK participant are being paid out, the remaining accounts, regardless of their number, may not receive payments to PPK anymore.
So far, from a legal perspective, it was not permitted to notify other employers who make payments for an employee to PPK of the fact that funds on one of the accounts are being paid out.
Outstanding annual leave to be taken by the end of September
Pursuant to Article 168 of the Labour Code, annual leave that is not used in a calendar year in which an employee becomes entitled to it must be granted by an employer by 30 September of the following calendar year at the latest. The final deadline for granting the outstanding leave is deemed observed if an employee starts this leave, at the latest, on the last day of the time-limit mentioned above, i.e. on 30 September of a given calendar year. These rules do not apply to an on demand leave specified in Article 167 of the Labour Code.
Mandatory health contribution from the remuneration of proxies
As from 1 July 2022, the provisions of law pertaining to the Polish Order 2.0 have been made more specific in Article 66, sec. 1, item 35a of the Act of 27 August 2004 on Publicly Funded Healthcare Benefits according to which proxies whose earnings for the performance of their duties are taxed with an income tax irrespective of how the source of income is classified also fall under a mandatory health contribution. Therefore, starting from July 2022, proxies should, undoubtedly, pay health contributions from the earnings they receive.