From 1 January, 2022, thanks to the Polish Order, new tax and healthcare contribution arrangements are to be introduced. Thanks to them, there will be limitations in illegal staff employment and in hiding parts of salaries coming from employment contract from the authorities. It is worth mentioning that those regulations also introduce advantageous terms of legal employment.
Currently, the tax system does not favour those employees who, in fear of excessive tax and healthcare contribution burden of their low salaries, agree to work illegally or to get part of their salary ‘under the table’.
The New Polish Order regulations are here to help all of those employees, by providing them with the fact that they won’t be obliged to pay an overdue tax that result from the illegal work salaries. Whole responsibility along with adverse impact of such illegal employment shall be passed on the employers who will be obliged to pay the payroll tax arising from above-mentioned illegal employment or from those parts of salaries that were paid ‘under the table’. They will also be assigned an extra income amounted to a minimal salary for every month of illegal employment regardless if the salary have been in fact paid and no matter the amount. Additionally, employers will be charged with outstanding social security contributions along with the health insurance contribution, that are assured from previously – mentioned salaries. Those regulations should encourage employees to disclose all of the cases that involve illegal employment or paying part of the salaries ‘under the table’.
At the same time, in order to encourage employers to hire their employees by the law, new regulations propose some sort of abolition, by giving the employers opportunity to come back to the right path and legalize current employment. If the condition is met until the end of 2021, payable tax arising from illegal employment and salaries paid ‘under the table’, will not have to be paid.