We would like to provide some information on PPK introduction.
The deadlines are getting closer, so here are some initial topics important for PPK implementation.
Deadlines and agreements
IV PPK stage starts on January 1st 2021. This stage is for everyone who had less than 20 employees on December 31st 2019.
IV PPK stage participants (employers) are obliged to make an agreement for the management of the PPK with one of 20 Financial Institutions until April 23rd 2021. This agreement is free of any costs on employers side.
Then, until May 10th 2021 employer is obliged to make agreements for running the PPK on behalf of those employees who did not resign from the PPK.
Employer is obliged to choose a financial institution after consulting it with employees representative. There is no specific form of such consultation, but you must initially inform every employee about PPK and how it works. Based on such detailed information, employees can decide about participating in PPK. If an employee doesn’t submit signed resignation you are obliged to register the employee to PPK. It is important to keep all signed resignations as a proof.
Moreover, you should propose a form of consultation based on which employees, or their representatives help you chose the institution Consultation conclusions should be signed by employer and employee’s representatives and kept in files.
If the consultation will not bring any result until February 23rd 2021, employer may choose the institution on its own. Full list of all financial institutions authorized to run PPK is in the link below https://www.mojeppk.pl/lista-instytucji-finansowych.html.
Summarizing the deadlines:
First of all, inform your employees that you will introduce and provide information about PPK and that they can voluntarily participate in.
Financial institutions often propose assistance in providing appropriate information for employees, so if you would initially choose one of the institution and ask for information materials, they probably would help.
1. February 23rd 2021 – consultations with employees on choice of financial institutions
2. March 23rd 2021 – final deadline to make an agreement for management of the PPK with chosen financial institution
3. May 10th 2021 – final deadline to make agreements for running the PPK on behalf of employees
PPK month by month
PPK contributions will work similar to ZUS contributions. Basis for calculating PPK contributions is identical to ZUS basis – which is a gross salary.
Contributions are split in two parts for employees who choose to join the PPK:
* Employee contributions
– 2% obligatory minimum contribution
– to 2% voluntary contribution
* Employer contributions
– 1,5% obligatory minimum contribution
– to 2,5% voluntary contribution (one stake for all employees)
Employee contributions are deducted from employees salary, but employer contributions are cost for the company.
First salary paid after conducting the agreement for running the PPK should be subject to PPK contributions, in your situation it will be May salary (paid after May 10th at the end of the month). Depending on financial institution we will be granted an access to their internet platform on which we will register employees and make monthly reports concerning the amount of contributions.
Deadline for monthly reports and monthly payments made to the institution is the same as ZUS deadline – 15th day of the next month after the month in which you made the salary payment.
Practical handling of the PPK
Our payroll software is fully capable with all financial institutions procedures concerning PPK. After the program will be introduced, we will handle calculating and generating files with reports. The most efficient way to organize it will be if you will send us employees decisions on
joining/leaving the program, change of their voluntary contribution amount etc. after which we will update those information in our payroll software and then (based on files generated from the software) we will run those changes directly on your PPK platform. Again, just like with ZUS.