Poland Payroll Services

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Poland Payroll Services

Bradford Jacobs’ extensive experience as a leading international payroll provider make us the first choice for companies planning expansion into Poland’s growing economy. Outsourcing payroll to Bradford Jacobs’ Employer of Record (EOR) services ensures your business will comply with all regulatory obligations regarding registration, tax filing, employment laws and other issues.

Bradford Jacobs provide the efficient and cost-saving alternative to setting up a subsidiary or branch in-country, which requires in-depth knowledge of Polish employment laws in addition to dealing with cultural and language issues. By partnering with Bradford Jacobs for outsourcing payroll our dedicated specialists will remove the burden of complying with Polish tax and payroll laws, freeing you to develop your business while we take care of everything else. Bradford Jacobs are the No. 1 payroll experts for Poland.

Poland Taxes

Poland is in the European Union but does not use the Euro. The official currency of Poland is the zloty (PLN).

Personal Income Tax (PIN):

Taxable income over Taxable income up to Tax rate
PLN 0 PLN 85,528 (€18,911) 17%
PLN 85,528 Over and in excess of tax credit of PLN 14,539 (€3,126)) 32%

Polish income tax is hugely complicated and different rates are affected by a tax credits system. Adding to the complexity, Poland operates a monthly tax payment system, requiring individuals pay 11 monthly tax advances (expatriates included).

Corporate Tax (CIT):

The standard corporate income tax rate is 19%. As of January 2019 a 9% rate is generally available to taxpayers whose business income (excluding capital gains) does not exceed the equivalent of €1.2 million (PLN 5.4 million). A non-standard tax rate of 5% may apply in certain circumstances.

Sales Tax:

Sales Tax (Value Added Tax) is expected to stay at 23% in 2021

https://home.kpmg/xx/en/home/insights/2011/12/poland-income-tax.html

https://taxsummaries.pwc.com/poland/individual/taxes-on-personal-income

What Taxation Rules exist for Payroll in Poland?

All employees must be registered with the Social Security Agency (ZUS) within seven days of starting employment. The employee contributes 18% of their monthly salary to the social security fund, with 14% added by the employer. Additionally, employers withhold 2.45% of employees’ salary for Poland’s Labour Fund, plus 0.1% to the Guaranteed Benefits Fund.

What Payroll Options are available for Companies in Poland?

Remote: Employees in Poland are added to the foreign parent company’s payroll.

Internal: Larger organisations with sufficient resources may consider establishing a Poland payroll system at their offices, but this involves the expense of setting up and staffing a new department.

Outsourced payroll: Appoint a payroll outsourcing company for a swift and efficient set-up. Bradford Jacobs are perfectly-placed to fill this role, as our payroll solutions will be tailored to fit your specific needs, by filing all necessary returns for tax and social security with the relevant authorities.

What is required to set up Payroll in Poland?

The employer needs the employee’s postal address and then to follow registration procedure:

  • Apply for a tax number (NIP)
  • Register employee with the Social Security Agency (ZUS)
  • Register employee with the National Court Register (KRS) or the Central Register for Information on Business Activity (CEIDG). These organisations are responsible for forwarding information to Poland’s National Revenue Agency (NRA), Social Security Agency (ZUS) and National Statistics Agency (GUS)

What Entitlement / Termination Regulations apply to Poland Payroll?

The employment agreements can be terminated by notice given by each party, two weeks if the employee was employed for less than six months. One month if the employee was employed for at least six months. Three months if the employee was employed for at least three years.

Contact Bradford Jacobs Global Payroll Services

Bradford Jacobs can quickly set up payroll systems and relieve you from the pressure and strain of understanding the regulations of Polish payroll. Our global payroll service experts possess a deep understanding of the Polish employment market. Let Bradford Jacobs handle your payroll services while you focus on your business goals. Any questions? We would love to answer them here