New reporting obligation for specific task contract (umowa o dzieło) as of 1 January 2021

Nov. 12, 2020 Poland

The amendment to the “COVID-19 Act” dated March 31, 2020, introduced an additional obligation for companies engaging individuals under specific task contracts (umowa o dzieło).

As of January 1, 2021, a remitter (Polish company) will be obliged to inform  Social Insurance Institution (ZUS) of the conclusion of each specific task contract, provided that:

  • the contract is concluded with an individual with whom the remitter has no employment relationship or
  • under the contract, no work is carried out for the company with whom the individual has an employment relationship.

According to the regulations, the notification shall be made within 7 days from the date of concluding a contract. Information provided will be registered on the taxpayer’s ZUS portal.

The new obligation, at least at this moment, is not linked with the imposition of contributions of such contracts – ZUS claims that the aim of the amendment is to enable verification of  ZUS and tax position of individuals performing duties under specific tasks contract.

The introduced changes do not provide for notification forms at this stage.

We recommend entrepreneurs to verify the business rationale of concluded specific tasks contracts, bearing in mind the potential risk of their reclassification and possible social security arrears at the side of the remitter along with interest for late payment.

If you have any questions, please do not hesitate to contact our experts:

Łukasz Bączyk
Head of Tax, Board Member

Justyna Trochimiuk
Payroll Manager