Business owners in Poland often rely on close family members to help run their business. This kind of cooperation means you have to pay ZUS (Social Insurance Institution) contributions for the cooperating person, but it also lets you deduct those contributions from income. Knowing how social security contributions for a cooperating person are settled is key to calculating income tax advances correctly and planning your tax burden.
The Polish social insurance system has special rules for people who cooperate with business owners. Contributions for them are calculated differently from those for ordinary employees, which affects how they are recorded in the books and taken into account when calculating income tax.
A cooperating person (osoba współpracująca) is a close family member of the business owner (spouse, own children, the spouse's children and adopted children, parents, stepmother, stepfather, adoptive parents) who shares a household with them and cooperates in running the business (Article 8 section 11 of the Social Insurance System Act). For such a person, the business owner must pay ZUS contributions on terms similar to their own contributions, but without the option of preferential rates
Rules for paying ZUS contributions for a cooperating person
A business owner who works with a cooperating person must pay social security contributions on that basis and finances them entirely from their own funds (Article 16 section 5a of the Social Insurance System Act). These contributions are calculated on rules similar to those that apply to the business owner, but with some important restrictions.
The main difference between contributions for a cooperating person and contributions for ordinary employees is how they are calculated. A cooperating person cannot use preferential ZUS rates, even if the business owner is entitled to them – the preferential base (Article 18a) and "small ZUS plus" (mały ZUS plus, Article 18c) apply only to the business owner. This means that when the business owner pays small ZUS (mały ZUS) under the relief for new businesses, they must pay full social security contributions for the cooperating person.
A business owner cannot pay preferential ZUS contributions for a cooperating person. Even if you use the relief for new businesses and pay small ZUS, you must pay full social security contributions for the cooperating person
The amount of contributions for a cooperating person depends on the contribution base – a declared amount of no less than 60% of the forecast average salary (Article 18 section 8 of the Social Insurance System Act), which in 2026 is PLN 5,652. The contributions cover compulsory pension, disability and accident insurance, voluntary sickness insurance (Article 11 section 2), as well as the Labour Fund and Solidarity Fund contribution. For comparison, the rates paid for staff are set out in our article on employee ZUS contribution rates.
It is also important that contributions for a cooperating person are paid regularly, within the deadlines that apply to social security contributions. Late payments may lead to interest and penalties, which increases the cost of running the business.
ZUS contributions for a cooperating person cover all elements of compulsory social insurance. The contribution base is set on rules similar to those for business owners, but without the option of preferential rates
Deducting a cooperating person's ZUS contributions from income
Social security contributions paid for a cooperating person can be deducted from income when calculating the income tax base. This works the same way as deducting contributions business owners pay for themselves (Article 26 section 1 point 2 letter a of the PIT Act; for the flat 19% tax (podatek liniowy) Article 30c section 2 point 1, for the flat-rate tax on recorded revenue (ryczałt) Article 11 section 1 of the Flat-Rate Income Tax Act), which is a significant tax relief. The Labour Fund and Solidarity Fund contribution is not a social insurance contribution and cannot be deducted in this way. Different rules apply to the health insurance contribution on ryczałt.
The condition for deducting contributions from income is that they have not already been included in tax-deductible costs. The business owner has to choose between treating the contributions as business costs and deducting them directly from income when calculating the income tax advance.
The deduction is made when the income tax base is calculated. The total amount of social security contributions paid – both for the business owner and for the cooperating person – is subtracted from total revenue less tax-deductible costs.
A cooperating person's ZUS contributions can be deducted from income provided they have not already been included in business costs. The deduction is made when the income tax base is calculated
The deduction mechanism has a significant effect on the business owner's tax burden. A lower tax base translates directly into less income tax to pay, which improves the business's cash flow.
It is important to keep proper records of the contributions paid for the cooperating person. All payments must be documented and entered in the tax records (KPiR – tax revenue and expense ledger, the revenue record or the accounting books) in line with the applicable rules. Recording these contributions is a standard part of our accounting services.
How to calculate the income tax advance
Calculating the income tax advance with contributions for a cooperating person follows a set procedure. Each step matters for arriving at the correct amount of tax to pay.
- Determine revenue from the beginning of the tax year
- Calculate tax-deductible costs from the beginning of the year
- Calculate income as the difference between revenue and costs
- Deduct social security contributions for the business owner and the cooperating person
- Determine the tax base, rounded to full zloty
- Calculate tax at the applicable tax rate
- Reduce the tax by the tax-reducing amount
- Deduct advances paid in previous periods
When calculating the income tax advance, contributions for the cooperating person are deducted from income together with the business owner's contributions before the tax base is determined. The tax base is then rounded to full zloty
For business owners taxed under the general rules, the tax base is multiplied by the 12 percent rate for income up to a certain threshold or 32 percent for higher income (tax scale, 12% and 32%). The tax-reducing amount and advances paid in previous periods are then subtracted from the tax calculated this way.
Applying the procedure correctly requires systematic records of all items that affect the amount of tax. Calculation errors may mean you have to correct your returns and pay extra.
A business owner who runs an online shop and is taxed on the tax scale works with his wife, who is a cooperating person. In 2026 he pays social security contributions for her from the minimum base of PLN 5,652, without voluntary sickness insurance – PLN 1,649.82 a month – and preferential social security contributions for himself (without sickness insurance) of PLN 420.86. With monthly income of PLN 15,000 he can deduct a total of PLN 2,070.68 in contributions, which reduces the tax base to PLN 12,929 (after rounding) and lowers the tax at the 12% rate by about PLN 248 a month.
Limits on deducting the health insurance contribution
From 2022 there has been a major change in the rules for deducting the health insurance contribution, including the one paid for a cooperating person. The health insurance contribution no longer reduces the income tax payable, which has increased the actual tax burden on business owners. The health insurance contribution base for a cooperating person is 75% of the average salary in the enterprise sector in the fourth quarter of the previous year (Article 81 section 2ya of the Act on Publicly Funded Healthcare Services) – in 2026 the contribution is PLN 622.93 a month.
This change concerns only the health insurance contribution, while social security contributions can still be deducted from income in full. On the tax scale, the health insurance contribution for a cooperating person can be neither deducted nor included in costs. With the flat 19% tax, it can be included in costs or deducted from income together with your own health insurance contribution up to an annual limit (PLN 14,100 in 2026 – Article 30c section 2 point 2 letter b of the PIT Act), and with ryczałt 50% of the contribution paid reduces revenue (Article 11 section 1a point 2 of the Flat-Rate Income Tax Act). Business owners must take this into account when planning their tax burden and calculating whether working with a cooperating person pays off.
From 2022 the health insurance contribution for a cooperating person does not reduce the income tax payable. On the tax scale, only social security contributions for pension, disability, sickness and accident insurance can be deducted; with the flat 19% tax and ryczałt, the health insurance contribution for a cooperating person can be taken into account to a limited extent
This limit is particularly important when comparing the cost of engaging a cooperating person with other forms of cooperation. The health insurance contribution is an additional cost which, on the tax scale, cannot be offset by lower income tax, and with the flat 19% tax and ryczałt only partly.
Business owners should take this change into account in financial analyses of the best form of cooperation with family members. In some cases, other legal forms may turn out to be more cost-effective.
Documenting and recording contributions
Proper documentation of contributions for a cooperating person is key to being able to deduct them from income. All payments must be documented in line with tax and accounting requirements.
The basic proof of payment is the transfer confirmation to the payer's individual contribution account at ZUS. The period the contributions relate to and the amount of each component follow from the ZUS DRA declaration and the individual report for the cooperating person.
| Type of contribution | Legal basis | How it is documented | Deductible |
|---|---|---|---|
| Pension contribution | Social Insurance System Act | ZUS DRA declaration | Yes |
| Disability contribution | Social Insurance System Act | ZUS DRA declaration | Yes |
| Sickness contribution | Social Insurance System Act | ZUS DRA declaration | Yes |
| Accident contribution | Social Insurance System Act | ZUS DRA declaration | Yes |
| Health insurance contribution | Act on Publicly Funded Healthcare Services | ZUS DRA declaration | Not on the tax scale; with the flat 19% tax within the limit, with ryczałt 50% |
In the tax records, contributions for the cooperating person should be recorded in a way that allows them to be identified and settled. If the contributions are not included in business costs, they must be shown in the relevant items of the tax return as contributions deductible from income.
Documenting contributions for a cooperating person requires detailed records of all payments broken down by type of contribution. You also need ZUS DRA declarations confirming the amount of contributions due
Accounting software can make it easier to record and settle contributions for cooperating persons. Automatically generated declarations and settlements reduce the risk of errors and streamline bookkeeping.
Impact on whether engaging a cooperating person pays off
The ability to deduct social security contributions from income has a significant effect on whether engaging a cooperating person pays off. A cost-benefit analysis should cover all the financial aspects of this form of cooperation.
The benefits of deducting contributions must be compared with the total cost of engaging the cooperating person, including social security and health insurance contributions. It is particularly important to remember that preferential ZUS contributions cannot be paid for a cooperating person. Farmers starting a business may also be affected by switching from KRUS to ZUS.
- Social security contributions can be deducted from taxable income
- Preferential ZUS rates cannot be used
- Full social security contributions must be paid
- The health insurance contribution does not reduce the tax
- Regular ZUS reporting obligations
The decision to engage a cooperating person should be preceded by a detailed calculation that takes into account the nature of the business and the level of income it generates. In some cases, other forms of cooperation may be more financially advantageous.
Whether engaging a cooperating person pays off depends on the business income, the business owner's tax rate and the cost of social security contributions. The analysis should cover all elements of costs and tax benefits
Business owners should also consider the long-term effects of engaging a cooperating person, including the impact on future pension and disability benefits. Contributions paid for a cooperating person affect the amount of their future social insurance entitlements.
Settling contributions in accounting software
Modern accounting software offers features that make it easier to settle contributions for cooperating persons. Automating bookkeeping reduces the risk of errors and makes it easier to generate tax and ZUS declarations.
Accounting software features include entering the cooperating person's details, calculating contributions automatically, generating ZUS DRA declarations and taking contributions into account when calculating income tax advances. Integration with ZUS systems lets you submit declarations and payments electronically.
Entering a cooperating person in the accounting software requires basic personal information and details of the contribution base. The software automatically calculates the contributions due and generates the relevant settlement documents.
Accounting software lets you settle contributions for cooperating persons automatically by generating ZUS DRA declarations and taking contributions into account when calculating income tax advances. These features make bookkeeping much easier
Based on the contribution payment data entered, the software automatically takes them into account when calculating the income tax advance. Contributions for the cooperating person are added to the business owner's contributions and deducted from income before the tax base is determined.
Using accounting software requires proper configuration and regular data updates. Errors in the data entered may lead to incorrect settlements and the need for corrections.
