PIT-11 for 2019 – the most important information for employers

Employers have to file PIT-11 form at the tax office, and then deliver the declarations to their employees. What is the deadline for submitting a correction to the form so that the new information can be implemented into employees` e-PIT service?

PIT-11 – how and when the declarations should be filed

Because of numerous amendments and new regulations, the completion of PIT-11 for 2019 may cause many problems for employers. Difficulties mainly concern the settlement of the so-called allowance for young people, i.e. exemption from income tax for people under 26 years of age. This situation has been further complicated by the publication of KIS (National Revenue Administration Information Centre – Krajowa Informacja Skarbowa) explanations contradictory to the guidelines of the Ministry of Finance. The companies which have already completed PIT-11 according to KIS interpretation are now obliged to correct their declarations. Moreover, some companies may also have problems with sending PIT-11 to the tax office electronically and acquiring an e-signature.

PIT-11 – THE MOST IMPORTANT DATES FOR EMPLOYERS

31 January 2020 – the deadline for filing PIT-11 form at the competent tax office

2 March 2020 – the deadline for delivering PIT-11 to employees

How to fill in PIT-11 form?

On starting to fill in PIT-11 tax return form for your employees and contractors, it is worth to consult the new Instruction of the Ministry of Finance and pay special attention to the following issues:

1. Zero PIT, i.e. the tax allowance for people under 26 years of age

The settlement of tax allowance for young people can be a big challenge for employers. First of all, it should be noted that only the version 25 of PIT-11 is officially used to settle the allowance for people under 26 years of age.

2. Version 25 of PIT-11 differs from the previous ones in E and G parts

Part E includes the following information:

• lines 1 and 5 – data concerning settlement of the young people’s allowance for the period from January 1 to July 31, 2019 and incomes (costs, income and advances collected) which the taxpayer obtained after his 26th birthday,
• lines 2 and 6 – data concerning the collection of advance tax paid to a taxpayer until the age of 26 on account of the income from an employment contract or a contract of mandate, both in the case of failure to submit a statement on benefitting from the allowance and in the case of exceeding the tax exemption limit,
• line 8 – data concerning the social security benefits paid by an employer,
• position 70 – data concerning the social security contributions including foreign contributions based on the income listed in lines 2 and 6 of part E,
• position 71 – data concerning the social security contributions based on the income exempted from tax under Art. 21 par. 1 item 148 of the Personal Income Tax Act, provided in position 86 of the PIT form,
• position 72-74 – data concerning the health insurance contributions (limited to 7.75% of the assessment basis).

Part G includes:

• position 86 – data concerning the tax-exempt amount,
• position 87 – data concerning the tax-exempt amount with breakdown for the employment relationship`s income,
• position 88 – data concerning the tax-exempt amount with breakdown for the income from the contract of mandate.

3. Sending PIT-11 to the tax office exclusively electronically by 31 January

Employers should file PIT-11 tax return form for their employees and contractors at the tax office (competent for an employee) electronically by 31 January 2020. Failure to comply with this obligation may result in a fine imposed by the court or by an authorised taxation officer. Submitting PIT-11 form by electronic means requires an e-signature (concerns all entities other than natural persons).

4. Delivery of PIT-11 to an employee by 2 March

An employer is obliged to deliver the completed PIT-11 form to employees and persons working under the contracts of mandate by 2 March. This can be done in three ways:

• traditional method – paper form,
• by electronic means in the form of an e-mail attachment,
• by electronic means via the intranet platform but only with the employee’s consent.

5. UBD (Uniwersalna Bramka Dokumentów) – Universal Documents Gate

The implementation of UBD allowed employers to send up to 20 thousand declarations to the tax office at the same time if sending PIT-11Z, PIT-8CZ, PIT-RZ. Note: UBD does not support PIT-4R forms (they must be sent separately).

6. PIT corrections for the previous years

From February 2020, it will be possible to re-submit other than version 25 of PIT-11 form when submitting corrections for the previous years.

7. Valid versions of tax return forms other than PIT-11

• PIT-R version 20 – attachment to PIT-11
• PIT-4R version 9 – annual tax declaration on advances for personal income tax
• PIT-8AR version 8 – annual tax declaration on flat-rate income tax

PIT-11 correction

If a remitter corrects the form, the corrected PIT-37 statement in your e-PIT service should be visible the day after the tax office approves the PIT-11 system. If the corrected form is submitted to the tax office after 15 February 2020, it may happen that the correction will not be included in the e-PIT service. In such a case, the taxpayer is obliged to make the correction of the obtained income in his PIT-37 tax return. In such a situation, it is worth to notify the tax office competent for the taxpayer in writing about this fact.

Longer waiting period for the overpaid tax refund for entrepreneurs

Entrepreneurs submitting their tax returns for 2019 have to fill in the forms themselves (KIS has withdrawn from the implementation of e-PIT service for companies). The deadline for submitting the returns officially begins on 15 February. Therefore, even if an entrepreneur submits a tax return form earlier, the deadline for the refund of the overpayment starts on 15 February anyway.

The deadline for overpayment refund for the companies which make online settlements this year is only 45 days. For the other companies making traditional settlements on paper forms the deadline is much longer and amounts to 3 months.

In the case of IP Box and R&D tax relief, the 5% tax rate can only be disclosed in annual tax settlement, it is not possible to take advantage of these tax reliefs from the beginning of the year.

Taxpayers calendar

Failure to comply with the above deadlines may result in the imposition of fiscal fines.

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