Employ Candidates Compliantly in Poland

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  1. Overview: Poland
  2. Global HR Compliance
  3. Global PEO and payroll
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
Other counrtries

Global PEO and Payroll in Poland

Getting your business up-and-running in Poland can be challenging, especially if you do not speak the native language. Establishing your own business entity in Poland is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in Poland, you should be fully aware of the risks involved.

Acumen’s Global PEO and Payroll solution was designed especially for companies like yours, to smooth the way for quick, easy and risk-free business operations in Poland, without having to establish a legal business entity.

Acumen International – Your Professional Employer Organization in Poland

Navigating the Polish legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native Polish speaker. Partnering with Acumen International as a global Professional Employer organization (PEO) provides you with the local knowledge and support you need to conduct business in Poland without concern for legal and compliance risks.

Whether you represent international client companies or you are taking your own business operations abroad, Acumen International’s Global PEO and payroll service allows you to hire and payroll local and expat employees in Poland. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.

International Global Payroll and Taxation in Poland

Employment related taxes

Personal Income Tax (PIT). Poland operates a monthly tax payment system.

The Polish tax system requires individuals to pay 11 monthly tax advances from foreign employment relationships, (expatriates included). The tax advance for December is declared at the time of lodging the annual tax return by 30 April of the following year. No tax declarations need to be filed during the tax year. The tax payment for December should be paid at the same time as the annual declaration is filed. The annual tax declaration should be submitted by 30 April of the following year. The payment of the tax due is transferred to the Treasury Office bank account on the same date.

Residents. Non-residents. Residents as a rule pay tax on the basis of the aforementioned progressive rate scale.

Non-residents, similarly to residents, pay tax on the basis of the progressive tax rate scale if they work under an employment contract.

Tax rate for non-residents is the same as that for residents.

Nontaxable payments. The following sources of income are generally exempt from personal taxation:

  • Insurance receipts (personal and property)
  • Per diem allowances and other reimbursed expenses, where business trip-related
  • Income earned abroad, if international or bilateral agreements so provide.

Social security contributions. Both the employer and the employee are obligated to contribute to the Polish social security system.

Social security for mobile employees. The social security position in Poland of mobile employees depends on whether:

  • European Union (EU) coordination regulations can be applied.
  • Bilateral totalisation agreement regulations should be applied.
  • Whether the international transfer is made to or from a third country with whom Poland does not have any international agreements, in which case only Polish domestic regulations will be applicable.

Payroll Cycle in Poland

Salaries are paid on monthly basis and employees must receive their salary no later the 10th of the following month.

Non-payroll taxes in Poland

There are standard VAT rate, reduced rates and special rate on certain food, books, newspapers and the supply of a limited number of other services.  A number of services are exempt from Polish VAT, such as financial and postal services.

There are many variations to the rates above, including exempt taxable supplies.

Poland VAT returns. Businesses with a Polish VAT number must submit periodic returns. VAT filings and payments are submitted either monthly or quarterly.  If quarterly, then pre-payments are required during the period.  Any Polish tax credits should be paid within 60 days (or 180 days if no taxable supplies), but the deadline may be extended if a tax audit is performed.

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How Acumen’s International PEO and Payroll Service can Benefit Your Business in Poland

Compensating your local and expat workforce in Poland and closely adhering to Polish taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.

Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf, and take care of all the details of payroll while ensuring full compliance with Polish labor and taxation laws.

It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.

Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in Poland by officially employing and compensating your best selected global talent – both locals and expats – without concerns for legal and compliance risks faced by global employers.

Disclaimer: Any of the above information is subject to changes imposed by Polish laws. To get the latest updates on taxation in Poland and in 190 countries worldwide, contact Acumen’s team of global employment experts.

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