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Understanding Advance Payment of Income Tax and its Impact on Polish Employees’ Salaries

After receiving the October payment, some Poles may have been surprised by the amount of salary transferred to their account – reports “Super Express”. As the daily indicates, this does not necessarily mean an accounting error, nor does it result from the number of layoffs or the selected leave. There is a possibility that This month, the employer decided to pay an advance payment of income tax to the tax office.

Where does this action come from? As the daily explains, the amount of tax paid is directly related to the income earned by a given employee. Last year, under the Polish Order, the tax threshold was lowered from 17 percent to 12 percent.

Therefore, employers currently pay an advance payment of income tax in the amount of 12 percent for income that does not exceed PLN 120,000. However, if your income exceeds this amount, the advance payment for income tax is already 32%. – explains the diary.

Nevertheless, it is possible to recover part of the contributions paid in the annual tax return after deducting tax deductions. Additionally, under the Polish Order, the tax-free amount has been increased, which means that no tax is paid at all up to PLN 30,000.

Why the difference in salary?

The website pit.pl comes with an explanation, people who exceed the first tax threshold are obliged to pay a higher amount of the advance payment. It is for this reason that the remuneration transferred to the employee’s account may be lower.

Therefore, financial experts advise that in such a situation, ask the accounting department for the so-called salary slip. It contains information about the amount that the remuneration payer pays to the tax office for the employee.

More favorable settlement

According to specialists, a joint settlement at the end of the year with your spouse may be a beneficial solution. In this way, you can recover the money that was withheld by the employer as an income tax advance.

This solution is especially beneficial when one spouse does not exceed the first tax threshold and the other spouse exceeds it. In the case of a joint settlement, the total income limit in the first threshold is taken into account, which is PLN 240,000.

Only after exceeding this amount do you fall into the second tax threshold, which is 32 percent. This solution can only be used by people working not on a business basis, but on the basis of an employment, specific work or mandate contract.

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2023-11-08 05:52:39
#payment #October #tax

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