Payroll services
in Poland for international companies
Streamlining Polish payroll services for global enterprises
Ensuring compliance in payroll services in Poland while optimizing cross-border financial transactions. Our cutting-edge solutions empower businesses of all sizes to seamlessly integrate Polish employees into their global workforce structure, simplifying international payroll management and enhancing operational efficiency.
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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 $30,000. 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.
Managing Polish payroll services presents unique challenges due to the country’s complex tax system and frequently changing labor laws. Unlike some other European nations, Poland has a multi-tiered social security system and various tax-deductible costs that can significantly impact payroll calculations. Additionally, Poland’s rapid economic growth has led to frequent updates in minimum wage laws and employee benefits, requiring constant vigilance and adaptability in payroll services.
The «13th salary» is a common practice in Poland where employees receive an extra month’s pay, usually at the end of the year. This tradition significantly impacts payroll services in Poland as it requires careful budgeting and accounting throughout the year. Our European payroll software is specifically designed to accommodate this practice, ensuring accurate accrual and timely distribution of the 13th salary while maintaining compliance with Polish tax regulations.
The split payment mechanism in Polish VAT law requires that certain B2B payments be divided, with the net amount paid to the supplier’s standard account and the VAT amount to a special VAT account. While this primarily affects accounts payable, it can impact Polish payroll for contractors or service providers. Our payroll services are equipped to handle these split transactions, ensuring compliance with VAT regulations while maintaining smooth payroll operations.
Recent reforms in Poland have altered how healthcare contributions are calculated, affecting both employers and employees. These changes have made payroll services in Poland more complex, as the contributions are now tied to actual income rather than a fixed rate. Our Polish payroll services stay up-to-date with these changes, automatically adjusting calculations to ensure accuracy and compliance with the new regulations.
Multinational companies can harmonize their global payroll systems with Polish requirements by adopting robust European payroll software that’s specifically tailored to handle Polish regulations. Key strategies include centralizing data management, implementing real-time reporting capabilities, and ensuring the system can handle Poland’s unique aspects like split payments and the 13th salary. Our payroll services offer seamless integration options that allow for standardized global processes while maintaining full compliance with local Polish regulations.