On January 1, 2022, a package of tax changes known as the “Polish Order” entered into force. The changes introduced in it are related in particular to the change of algorithms for calculating advances for income tax and health insurance contributions.
Polish Order in the Personnel module
New tax thresholds
From the new year, a new tax-free amount applies – PLN 30,000. In the Quatra Max system, the values of this tax relief have been changed: annually to PLN 5,100, and monthly to PLN 425. Moreover, the tax threshold was increased to the amount of PLN 120,000
The exemption for pensioners (allowance for senior citizens) and people with at least 4 children (allowance for 4+) was taken into account. For these people, the PIT tax up to PLN 85,528 of revenues is not charged.
A mechanism for calculating the tax relief for the citizens returning from emigracy was introduced. The tax relief is available for 4 consecutive tax years, counting from the end of the base year, which is – at the taxpayer’s choice – the year of transferring the tax residence to Poland or the following year. A deduction is made for 50% of the total amount of tax calculated according to the tax scale or 19% of the flat rate for entrepreneurs. In the first year, it will be subject to 50% of the tax calculated for the base year, in the second year – calculated for the first year of applying the relief, in the third and fourth years – calculated for the second and third years of applying the relief, respectively.
Algorithms for calculating the allowance for employees earning monthly in the range of PLN 5,701 – PLN 11,141 were introduced, as well as handling the application for not applying this allowance.
Algorithms were introduced that take into account the change in the calculation of the amount of the health insurance premium and the inability to reduce the tax advance by a part of the health insurance premium (7.75%).
An alternative method of calculating the advance payment for income tax was introduced in accordance with the Regulation of the Minister of Finance of 07/01/2022 on the extension of collection dates and the transfer of advance payments for personal income tax by certain payers.
We also watch over other changes
effective from 01/01/2022
The Quatra Max system includes:
Change in the amount of the minimum wage
Change in the amount of the annual reduction of the basis for the assessment of pension and disability pension contributions
Higher allowance for the period of stay in the hospital
New rules for determining the basis for the calculation of sickness benefit
Simpler rules for determining the benefit period
Changes in the code of the profession
We keep track of all regulations affecting the calculation of remuneration and we react as soon as the law requires it, and our consultants provide support and assistance at every stage of employee service in the System.