16.01.2021

What must an entrepreneur do before the end of the year?

The end of the year is an extremely demanding time for all parents, students, employees and of course ... entrepreneurs. Often even the most experienced business owners have a confusion once a year among the responsibilities of running a business. However, this is unnecessary stress, because with good planning and proper preparation, these duties become a mere formality that does not challenge the entrepreneur. So what should an entrepreneur keep in mind at the end of each calendar year?

Tax settlements the bane of entrepreneurs?

The end of the year is the time for a businessman to make a mandatory settlement with the Treasury for the income earned. There are many types of PIT settlements, and which one an entrepreneur should use depends on the type of business and the taxation chosen. If you have any doubts, it is worth contacting an official, a tax advisor or an experienced accountant directly. In the Polish tax system, the basic types of PIT are: PIT-28, PIT-36, PIT-37, PIT-38, and PIT-39. When settling your tax return, you may also find it helpful to use the following. guide offered by e-pity.pl, which explains step-by-step the steps of settling a PIT. On the site provided, you can also check the deadlines for clearing each type of PIT.

End of the year a good time to change the type of taxation?

Staying on the topic of taxation, an entrepreneur should consider whether the current form is the most favorable one for him. The end of the year is the best time, for this type of consideration, because the summary of the year, financial analysis and analysis of costs and revenues provides the necessary information to assess whether, for sure, the current form of taxation is suitable for business. A potential change can be made in any calendar year by delivering an application to the Chief Tax Officer before January 20.

The end of January is the last bell for the Social Security Administration.

January 31 is the date by which the employer is obliged to submit information about the previous year to the Social Insurance Institution (ZUS). This requirement is imposed on companies if they meet the following conditions:

  • The business entity was continuously reported to the Social Security Administration as a payer of accident insurance from January 1 to December 31 of the year for which it submitted ZUS IWA information and at least one day in January of the following year,
  • The business entity reported at least 10 insured persons for accident insurance in the year for which the ZUS IWA information was submitted,
  • The business entity on December 31 of the year for which it filed the ZUS IWA information appeared in the REGON register.

The data submitted to the ZUS IWA is intended to help determine the accident insurance premium. After submitting the information for the last three calendar years, the entrepreneur is relieved of such an obligation, since it is the Social Insurance Institution that determines the insurance rate for the upcoming calendar year. For more information on filing and correcting insurance documents, see a guide published by the Social Security Administration.

Central Statistical Office (CSO)

Another obligation incumbent on the entrepreneur at the beginning of the year is to submit a report to the Central Statistical Office (CSO). Not all entrepreneurs file on time, as this depends on factors such as the size of the company, the number of employees, the form or type of business conducted. The reporting obligation incumbent on national economy entities concerns the following surveys:

  • DNU-K - Quarterly report on international exchange of services
  • DNU-R - Annual report on international exchange of services
  • H-01/k - Quarterly survey of revenues in commercial enterprises
  • Z-05 - Labor demand survey

Detailed information for entrepreneurs is available by logging on: CSO Reporting Portal.

Ignorance of the law harms!

The end of the calendar year is a time when it is also a good idea to familiarize yourself with any changes in the law and new regulations. Don't be surprised, though, by new taxes that will take effect from 2021. Examples of such mandatory fees that may surprise an entrepreneur are the trade tax, or the plastic tax. Remember that ignorance of the new law does not exempt you from complying with it!

Year-end shopping not just for Christmas

The end of the year is also an ideal time to consider larger company purchases such as new equipment or office supplies. Higher deductible expenses directly affect the lower income tax the company will be charged. Keep in mind, however, that not everything is considered a business expense by the IRS. These purchases must be related to the business.

It doesn't have to be difficult!

The end of the year, although it is associated by everyone, and mainly by entrepreneurs, with a period of increased work and a flurry of duties, does not have to be difficult. Good planning and preparation of the necessary documents and information at that time will avoid unnecessary stress in the future, so we advise you to start all preparations in advance.

Marek Gorajek

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