On Saturday, the Polish Parliament adopted the so-called anti-crisis shield. It provides for a number of solutions to help entrepreneurs combat the economic effects of the spread of the SARS-CoV-2 coronavirus.

These include, among others, extension of the carer’s allowance, stoppage benefits or subsidising part of the costs of business activity by the starost.

Below we present you with further solutions, this time addressed to self-employed persons, persons employed under civil law contracts and micro-entrepreneurs.

LSW Law Firm offers its clients, affected by the consequences of the COVID-19 outbreak, assistance in the implementation of all solutions, including the preparation of required documents, motions, negotiations with unions and employee representatives.

I. Longer additional care allowance

A longer care allowance means an additional 14 days of benefit for an entrepreneur and a contractor who have paid sickness insurance contributions. The longer benefit will be related to the closure of nurseries, schools and kindergartens attended by the insured’s child who is under 8 years of age due to a coronavirus epidemic. The benefit will also apply for 14 days to parents who have benefited from the supplementary care allowance under the first COVID-19 Act. In the event of further closures, the Council of Ministers will be able to decide to extend the period of the care allowance.

II. Downtime benefit for persons performing a civil law contract

The benefit will be due to a person performing a civil law contract (an agency contract, a contract of mandate, another contract for the provision of services to which, in accordance with the Civil Code, the provisions concerning mandate apply or a contract for specific work) if there was a stoppage in the conduct of business by the principal or ordering party with whom the civil law contract was concluded as a result of the occurrence of COVID-19.

The standstill benefit is due to a person performing a civil law contract:

  • whose civil law contract was concluded no later than 1 February 2020;
  • whose income from the civil law contract within the meaning of the provisions on personal income tax, obtained in the month preceding the month in which the application for the parking benefit was submitted, was not higher than 300% of the average monthly remuneration from the previous quarter announced by the President of the Central Statistical Office on the basis of provisions on pensions from the Social Insurance Fund, valid as of the date of submitting the application.

The parking benefit will be entitled to 80% of the amount of the minimum remuneration for work in force in 2020, i.e. PLN 2080.

In the event that the sum of revenues from civil law contracts within the meaning of the provisions on personal income tax obtained in the month preceding the month in which the application for the parking benefit is submitted amounts to less than 50% of the amount of the minimum remuneration for work in force in 2020, the parking benefit is due in the amount of the sum of remunerations for the performance of these civil law contracts.

The parking benefit will be granted as a one-off payment. The Council of Ministers will be able, in order to counteract COVID-19, by means of a regulation, to grant a new payment of the standstill benefit, for persons who have received this benefit, taking into account the duration of the epidemic emergency or epidemic state and the effects caused by them.

Determination of the right to the standstill benefit will take place at the request of an entitled person, who will submit it to the Social Insurance Institution. The application will be submitted via the principal or the ordering party, respectively.

III. Downtime benefit for persons pursuing an economic activity

The benefit will be due if there has been a stoppage of activity, by a person carrying on a non-agricultural economic activity, following the occurrence of COVID-19,

The benefit will be due to a person who is not subject to social insurance on other grounds, and:

  • has not suspended his/her economic activity,
  • if the income from running economic activity obtained in the month preceding the month of filing the application for post-employment benefit was by at least 15% lower than the income obtained in the month preceding that month and was not higher than 300% of the average monthly remuneration from the previous quarter announced by the President of the GUS on the basis of regulations on pensions from the Social Insurance Fund on the day of filing the application,

or

  • who suspended their economic activity after 31 January 2020
  • whose income from business activity obtained in the month preceding the month in which the application for a parking benefit was submitted was not higher than 300% of the average monthly remuneration from the previous quarter announced by the President of the Central Statistical Office on the basis of the provisions on pensions from the Social Insurance Fund on the day the application was submitted.

The above requirements will not apply to a person who conducts economic activity to which the provisions on flat-rate income tax in the form of a tax card apply and who has benefited from the exemption of sales from tax on goods and services.

The parking benefit will be due in the amount of 80% of the amount of the minimum remuneration for work in force in 2020, i.e. in the amount of PLN 2080. A person conducting business activity to which provisions on flat-rate income tax in the form of a tax card apply and who benefited from the exemption of sales from the goods and services tax is entitled to a parking benefit amounting to 50% of the minimum remuneration for work in force in 2020, i.e. PLN 1,300.

The downtime benefit will be a one-off payment. The Council of Ministers will be able, in order to counteract COVID-19, by means of a regulation, to grant a new payment of the standstill benefit, for persons who received the benefit, taking into account the duration of the state of epidemic danger or the state of epidemics and the effects caused by them.

Determination of the right to the standstill benefit will take place at the request of the entitled person submitted to the Social Insurance Institution.

IV. Partial financing of the costs of running a business by the Starost

A Staroste will be able, on the basis of a concluded agreement, to grant to an entrepreneur, who is a natural person not employing any workers for a period not longer than 3 months, co-financing of a part of the costs of running a business in the event of a decrease in business turnover as a result of the occurrence of COVID-19.

The co-financing in the case of a decrease in turnover by:

1) at least 30% – will be able to be granted in the amount of 50% of the amount of the minimum salary per month, i.e. in the amount of 1 300 PLN;

2) at least 50% – may be granted in the amount of 70% of the minimum monthly remuneration, i.e. in the amount of PLN 1,820

3) at least 80% – may be granted in the amount of 90% of the minimum monthly remuneration, i.e. in the amount of PLN 2,340.

In order to counteract COVID-19, the Council of Ministers will be able, by means of a regulation, to extend the period for which the funding is granted, taking into account the duration of the epidemic emergency or epidemic state and the effects caused by it.

The entrepreneur benefiting from the funding will be obliged to carry on business for the period for which the funding is granted and, after the funding ends, for a period equal to that period.

The entrepreneur will not be able to receive co-financing for the part in which the same business costs are financed from other public funds.

V. Subsidising a part of employees’ remuneration costs by the Starost

A Staroste will be able, on the basis of an agreement concluded, to grant to a micro-entrepreneur, for a period of up to 3 months, co-financing of a part of the costs of remuneration of employees (employed on the basis of an employment relationship, on the basis of an employment contract or a contract of mandate or other contract for the provision of services), and social security contributions due on these salaries in the event of a decrease in business turnover as a result of the occurrence of COVID-19.

Co-financing in the event of a decrease in turnover by:

1) at least 30% – may be granted in the amount not exceeding the sum of 50% of salaries of individual employees covered by the application for co-financing together with social insurance contributions due on these salaries, but not more than 50% of the amount of the minimum remuneration for work, increased by social insurance contributions from the employer in relation to each employee, i.e. in the amount not exceeding PLN 1566;

2) at least 50% – may be granted in the amount not exceeding the amount constituting the sum of 70% of remuneration of individual employees included in the application for co-financing together with social insurance contributions due from these remunerations, but not more than 70% of the minimum remuneration, increased by social insurance contributions from the employer with regard to each employee, i.e. in the amount not higher than PLN 2192;

3) at least 80% – can be granted in the amount not exceeding the amount constituting the sum of 90% of salaries of individual employees covered by the application for co-financing together with social insurance contributions due from these salaries, but not more than 90% of the amount of the minimum salary, increased by social insurance contributions from the employer, in relation to each employee, i.e. in the amount not exceeding PLN 2819.

The Council of Ministers may, in order to counteract COVID-19, by means of a regulation, extend the period for which the subsidy is granted, taking into account the duration of an epidemic emergency or a state of epidemics and the effects caused by them

The entrepreneur benefiting from this subsidy will be obliged to maintain in employment the employees covered by the contract for the duration of the subsidy and, after the end of the subsidy, for a period equal to this duration.

VI. Loan for a micro-entrepreneur

The Starost will be able, on the basis of a concluded agreement, to grant a one-time loan to a micro-entrepreneur to cover the current costs of business activity.

The loan will be granted up to PLN 5,000. The interest rate on the loan will be fixed at 0.05 of the NBP rediscount rate per annum.

The term of the loan will be up to 12 months, with grace in repayment of the loan and interest for 3 months from the date of granting the loan.

At the micro-entrepreneur’s request, the loan may be written off provided that the micro-entrepreneur does not reduce the number of full-time equivalent employees in relation to the number of employees as at 29 February 2020.

VII. Exemptions from Social Security contributions for microentrepreneurs and persons conducting economic activity

An entrepreneur who reported less than 10 insured persons to social insurance as at 29 February 2020 will be able to apply for an exemption from the obligation to pay unpaid dues for social insurance, health insurance, the Labour Fund, the Solidarity Fund, the Guaranteed Employee Benefits Fund or the Bridging Pension Fund, due for the period from 1 March 2020 to 31 May 2020, if he was reported as the payer of contributions before 1 February 2020.

A person conducting economic activity, paying contributions exclusively for his own social insurance or health insurance, will be able to apply for exemption from the obligation to pay unpaid dues for contributions to his compulsory pension and disability insurance and accident insurance, voluntary sickness insurance, health insurance, the Labour Fund and the Solidarity Fund, due for the period from 1 March 2020 to 31 May 2020, if he conducted activity before 1 February 2020 and the income from this activity earned in the first month for which the application for exemption from the obligation to pay contributions is submitted was not higher than 300% of the projected average gross monthly remuneration in the national economy in 2020.

Exemption from the obligation to pay contributions will apply to dues determined on the basis of the applicable lowest assessment basis for such contributions.