Employee Capital Plan service – professional support in the management of Employee Capital Plans

The implementation and management of Employee Capital Plans (ECPs) is an obligation that concerns most employers. For many companies, however, the Employee Capital Plan service is a complicated and time-consuming process that requires knowledge of the regulations and attention to proper documentation. 

EFEKTA Accounting Office offers full support in Employee Capital Plan service, helping entrepreneurs to meet their obligations in a reliable and hassle-free manner.

What are Employee Capital Plans (ECPs)?

The ECP is a voluntary, systematic savings programme for the future that was introduced in Poland under the 2019 Act. The aim of the ECP is to provide additional financial support to employees after their working lives have ended. The system is based on three funding pillars:

1. Employee contributions – amount to 2% of gross salary as standard, with the possibility to increase up to 4%.
2. Employer contributions – the standard contribution is 1.5% of gross salary, with a voluntary increase to 4%.
3. State subsidies – PLN 250 welcome fee and PLN 240 per year for the ECP participants.

Employees’ participation in the ECP is voluntary, but employers are obliged to establish and maintain the ECP in their company.

Why can the Employee Capital Plan service be a challenge?

Employers face many challenges in implementing the ECP and its service, including:

1. Formalities and documentation
   The need to select a financial institution, prepare contracts for the management and operation of the ECP and notify employees in a timely manner.
2. Recording payments and calculating contributions
   Precise calculation of employer and employee contributions and their timely payment to the ECP account requires accurate record-keeping and knowledge of the regulations.
3. Variable employee data
   The Employee Capital Plan service must take into account changes in employment, the ECP resignation statements and contribution updates.
4. Compliance with regulations
   Failure to comply with statutory requirements or failure to make timely payments may result in financial penalties.
5. Education of employees
   Employers often have to respond to employees’ questions and concerns about the ECP participation, which requires knowledge and time.

Our services in the Employee Capital Plan service

At EFEKTA, we offer comprehensive support to companies in Employee Capital Plan service. Our services include:

1. Implementation of the ECP
   We assist in the selection of the financial institution, draw up the agreements for the management and operation of the ECP and prepare the implementation schedule.
2. Calculation and recording of contributions
   We calculate the ECP contributions, taking into account individual employee statements and salary changes.
3. Transfer of contributions
   We ensure that contributions are transferred on time to the account of the selected financial institution, in accordance with statutory requirements.
4. Keeping the ECP documentation
   We create and update the entire ECP documentation, including records of participating employees and those who have resigned.
5. Support in employee service
   We answer questions and concerns about the ECP and help employees understand how to save under the scheme.
6. Compliance and audit
   We ensure that operations are fully compliant with the ECP Act and prepare documents in the event of an audit by supervisory institutions.

Why use EFEKTA’s Employee Capital Plan service?

1. Experience in Employee Capital Plan service
   We handle the ECP service for companies in a variety of industries, so we understand the specifics of different employment models.
2. Regulatory compliance
   Our services are compliant with current regulations, eliminating the risk of errors and sanctions.
3. Saving time
   We take over all the ECP responsibilities, allowing you to focus on running your business.
4. Individual approach
   We tailor our services to the needs of your company, taking into account its structure and specifics.
5. Support in educating employees
   We help explain the principles of the ECP, supporting employees in making informed decisions.

Stress-free ECP management

The Employee Capital Plan service does not have to be complicated. With EFEKTA you are assured that everything will be done on time and in accordance with the regulations. We offer not only reliable support, but also full transparency and commitment.

Contact us today to find out more about our services in ECP service. Make an appointment for a free consultation and let us take care of your company’s finances and employees.

EFEKTA – your partner in the ECP service.

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Is every company obligated to implement PPK (Employee Capital Plans)?

Yes, the majority of employers in Poland are obligated to establish and maintain PPK, regardless of the form of employment. Although an employee’s participation in the program is voluntary, the employer must provide the opportunity to save to everyone who meets the statutory criteria.

What are the funding sources for PPK savings?

The system is based on three pillars:

• Employee: a basic contribution of 2% of gross remuneration.
• Employer: a basic contribution of 1.5% of gross remuneration.
• State: a one-time welcome bonus (PLN 250) and an annual surcharge (PLN 240).

Can an employee opt out of participating in PPK?

Yes, employee participation is fully voluntary. An employee can submit a declaration to opt out of making contributions at any time. However, it is important to remember that auto-enrollment occurs every 4 years, requiring the re-submission of the declaration if the employee still does not wish to participate in the program.

What are the main challenges for employers in managing PPK?

The most demanding tasks include selecting the appropriate financial institution, the timely calculation and remittance of contributions, maintaining ongoing records of personnel changes, and ensuring documentation complies with the act to avoid financial penalties.

How does EFEKTA assist companies in implementing the program?

We help you navigate the entire process: from selecting a financial institution and signing management contracts, to preparing an implementation schedule and training your team on their new responsibilities.

Who handles the updating of employee data and declarations?

As part of our services, we take over the complete record-keeping of documentation. We monitor employment changes, process declarations for opting out or resuming contributions, and update contribution amounts in accordance with employee requests.

Does EFEKTA assist in educating employees about PPK?

Yes. We understand that this system can raise questions, which is why we support employers in explaining how PPK works. We help employees understand the benefits of state and employer contributions, which builds trust in the program within the company.

What are the risks of errors in PPK administration?

Late payments or failure to maintain proper documentation can result in sanctions from supervisory authorities. Partnering with EFEKTA eliminates this risk – we ensure full regulatory compliance and prepare documentation so that it is always ready for any review or audit.