In accordance with the PPK Act, from 1 July 2019 the obligation to conduct the programme was imposed on companies employing more than 250 employees. According to the estimates of the Polish Development Fund (Polski Fundusz Rozwoju), 70% of such entities, i.e. about 4,000 companies, will benefit from it. However, the regulations still raise many questions on the employers’ side.
Clients most often ask about how to organize the implementation and service of PPK from the operational side. We help them to adjust their HR and payroll processes to the new regulations and provide ongoing support during their implementation, both on the line between the company – employees and the company – funds – says Magdalena Aleksandrowicz, President of the Management Board of Contract Administration.
The implementation of PPK is connected with new obligations for employers. Companies have been obliged to keep records of persons using the program, employee declarations and timely calculation of contributions and transfer them to the fund managing the PPK. They are also responsible for communication obligations, both towards employees and institutions managing the funds.
After the implementation of the PPK, the employer is obliged to continuously monitor the process, watch the amount of contributions, handle resignation and new entries to the program. All this requires the involvement of additional resources, also in the IT area – adds Elżbieta Miękus, Operations Director of Contract Administration.
The handling of PPK will be largely supported by IT solutions that will facilitate the collection and analysis of data of the programme participants. However, the HR and payroll programs used by the companies will have to be adjusted to the new requirements. In the case of entrepreneurs outsourcing HR and payroll processes, this process may be supported by a service provider.
The majority of customers who use HR and payroll services expect support in the area of Employee Capital Plans. This is mainly due to the lack of adequate resources to operate the programme. That is why we decided to introduce a dedicated service in this area – says Magdalena Aleksandrowicz.
An external company will help entrepreneurs both at the stage of selecting the PPK management fund and signing contracts, as well as during the day-to-day operation of the programme. In such a situation, it will be crucial to determine the scope of responsibility of both parties to the agreement.
Precise division of roles in the process will allow to clearly identify persons responsible for given activities, which will significantly reduce the possibility of a situation of non-compliance with obligations resulting from the PPK Act. Thus, it will better protect the company against the risk of sanctions – adds Elżbieta Miękus.
Employers are threatened with penalties of up to 1.5% of the value of the remuneration fund or in the amount of PLN 1,000 to 1,000,000 for failing to fulfil their obligations related to the Employee Capital Plans. Sanctions may be imposed for, among other things, failure to meet the deadlines for signing contracts and for discouraging employees from participating in the program.
PPK Support Services