Payroll services
in Poland for international companies
International payroll for companies having Employees in Poland
Compliantly handling international payroll and simplifying global transactions.
Hire overseas
without setting up an entity
Pay your polish
team on time
in 20+ currencies
Payroll in Poland What tax considerations are there?
In Poland, Polish residents are subject to income tax on their worldwide income and non-residents are subject to income tax on their Polish income only. Income tax is calculated on a progressive tax scale, based on employees’ income. Employees are also subject to social security contributions.
Additionally, businesses must pay corporate differing VAT rates of 23%, 8%, 5%, and 0%, depending on the type of goods and services.
Contract types:
This type of contract provides for the payment of low taxes from 6% to 9.6%, with an annual limit of $63,000 and $38,000. If the threshold is exceeded, the tax will be 25.6%. At the same time, this type of contract provides for the transfer of the results of the work performed to us and does not provide for social insurance, sick leave and vacations.
This type of contract provides for the payment of social insurance and full payment of income tax per employee, but does not provide for sick leave and vacations. The tax is about 50% before exceeding the annual threshold and 70% after exceeding the threshold. The income threshold per year is about $3,600. There is a possibility of a zero tax rate, for this the employee must be under the age of 26 and be a student at an educational institution in Poland. However, the annual limit in this case is $ 22,000, after exceeding the tax will be 12%.
This type of contract provides for full social insurance, vacation and sick leave. The annual tax threshold is the same as for Umova zlecenie, but the tax is 2% higher in both cases.
Pricing plans
- Hiring your remote employees
- Employee tax calculations and annual tax reports
Depending on the type of contract
- Obtaining a work permit in the EU
- Assistance in obtaining a residence permit
- Hiring your remote employees
- Employee tax calculations and annual tax reports
Depending on the type of contract
FAQ
Payroll in Poland is a system that enables any companies in the world to pay their workers in Poland.
Companies need polish payroll for several key reasons:
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Compliance with Local Regulations: Different countries have distinct labor laws, tax regulations, and compliance requirements. Polish payroll ensures that companies adhere to these local laws, avoiding legal issues and fines.
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Consistency and Standardization: A centralized payroll system in Poland provides consistency in payroll processing across multiple regions, ensuring that all employees are paid accurately and on time, regardless of their location.
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Cost Efficiency: Managing payroll through a polish system can reduce administrative costs and streamline operations by consolidating payroll functions, thereby avoiding the need for separate payroll teams in Poland.
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Scalability: As companies expand into new markets, a payroll system in Poland allows for scalable operations. It can easily integrate new employees and regions into the existing payroll framework without significant disruption.
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Employee Satisfaction: Timely and accurate payroll is critical for employee satisfaction and retention. A reliable payroll system ensures employees in Poland are paid correctly and on schedule.
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Data Security: Payroll system in Poland often come with robust security features to protect sensitive employee data, reducing the risk of data breaches and ensuring compliance with data protection regulations.
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Reporting and Analytics: A payroll system provides comprehensive reporting and analytics capabilities, offering insights into labor costs, workforce trends, and financial planning on a polish scale.
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Currency and Exchange Rate Management: Payroll system in Poland can handle multiple currencies and exchange rates, ensuring that employees are paid correctly in their local currency (zlotys) and that the company manages currency fluctuations effectively.
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Cultural and Market Adaptation: Understanding and adapting to the cultural and market-specific payroll practices is vital for global operations. A global payroll system helps companies navigate these nuances effectively.
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Employee Mobility and Relocation: For companies with employees who frequently relocate or work across different regions, a global payroll system simplifies the process of adjusting payroll for expatriates and international assignments.
By implementing a global payroll system, companies can enhance operational efficiency, ensure legal compliance, and maintain a satisfied and motivated workforce across all their international locations.