- Overview: Poland
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global PEO and Payroll in Poland
Do you have Ukrainian workers who are planning to flee to Poland to escape the Russian conflict? Or have your employees already left Ukraine and arrived in Poland?
Acumen International can help companies like yours, including IT, to compliantly employ your Ukrainian talent in Poland within days. Acumen’s global PEO and Payroll solution helps you to legally relocate your Ukrainian personnel to Poland so you can enjoy uninterrupted workflow with employees you know and trust. Our solution enables us to arrange for global payroll, and to open bank accounts for your employees. We can also provide your talent with laptops, mobile phones, and other tools they need to perform their jobs.
If you are an international company planning to engage a selected workforce in Poland, or if you represent global clients who are, you may consider setting up a legal business entity in Poland to get your business up and running. But setting up a company in Poland can be challenging and risky, especially considering the transient nature of laws implemented during the global pandemic.
Navigating Polish labor and tax laws requires extensive research, and you will need to take elaborate measures to avoid compliance risks and infractions of those laws.
Acumen International – Your Professional Employer Organization in Poland
Acumen’s Global PEO and Payroll services in Poland provide the perfect solution for companies like yours who want to get their business operations underway with minimal obstacles and inconveniences.
International Global Payroll and Taxation in Poland
Acumen’s international PEO payroll service in Poland helps you take the hassle of sorting out the complexities of compensating your global employees in the country off your shoulders, saving you time, money and headaches. We onboard local and expat employees on your behalf in Poland, and take care of all the HR details concerning payroll, taxes, benefits and termination.
Pay a convenient monthly invoice to cover all your global HR needs in Poland, and leave your or your clients’ selected staff employment hiring and payroll requirements in our capable hands, so you can focus on growing your business.
NOTE: Acumen International is not an International Payroll service provider and does not provide international global payroll as a standalone solution apart from that within our complex global PEO and Payroll solution in Poland, or in any of the other countries we cover.
Ready to get started? Request a quote!
Employment-Related Taxes in Poland
Foreign employers are not required to withhold taxes of Polish citizens or expatriates, and the onus of paying taxes rests on the shoulders of the individual employee. But if your employee fails to pay their taxes, it can disrupt your business operations and draw unwanted attention to your company.
Employer and Employee Payroll Taxes
Poland has a progressive income tax for both Polish residents and expatriates working in the country. Polish companies are obligated to deduct taxes from worker’s paychecks, to be paid to the tax office by the 20th of the following month.
Tax rates for both Polish workers and expatriate employees are:
- 17 percent for workers earning between 0 and PLN 120,000 per year (about $29,350 USD)
- 17 percent for earnings up to PLN 120,000 per year, plus an additional 32 percent for earnings exceeding that amount
In addition, employers are obligated to make social security contributions (SSC) for Polish employees, ranging from 19.21% to 22.41%, accrued in addition to the employee’s gross salary. The amount of contribution varies, depending on the number of employees insured and the business sector a company operates in.
Need to get all the Total Employment Costs upfront to budget your global hiring in Poland? Get instant estimates with our Global Payroll Calculator (GPC).
Payroll Cycle in Poland
Polish workers are typically paid on a monthly basis. In 2022, the monthly minimum wage in Poland is PLN 3000 (about $734 USD).
13th salary in Poland
An end-of-year bonus, sometimes called a “13th salary,” is not required in Poland. However, companies wishing to attract top talent should study the current labor market and their competitors, and gauge their compensation packages accordingly.
Non-Payroll Taxes in Poland
Corporations are subject to Value Added Tax (VAT) for the majority of goods and services supplied within Poland, exported outside the European Union, imported from non-EU countries or from other EU countries, or exported to other EU countries. The standard VAT rate is 23%, although reduced rates apply to certain categories. Some goods and services may be zero-rated or exempt from VAT, such as exports and supplies to other EU nations.
Please note that in some countries VAT and/or additional local sales tax may be applied to PEO services rendered, which may raise the initial invoice amount. Fill out the form to get tailored expert advice on additional taxes in Poland.
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Tax Residency in Poland
Polish tax residents are required to pay personal income tax (PIT) on their worldwide income. Non-residents are required to pay PIT on their Polish-sourced income only. Taxpayers earning less than PLN 30,000 per year are exempt from PIT.
In addition, individuals whose annual income exceeds PLN 1 million are charged a solidarity tax, calculated at 4% of the earned amount over PLN 1 million.
For tax purposes, a person qualifies as a resident in situations where they:
- Have a center of personal or business interests in Poland, or
- Live in Poland more than 183 days per fiscal year
The onus of calculating and withholding PIT from workers’ salaries rests with the employer.
Permanent Establishment (PE) Risks in Poland
If a foreign company is deemed to officially operate in Poland in case you don’t have an established legal entity but your business grows to the extent of continuous (permanent) operations in the country, e.g., by using independent contractors to conduct business, the company may be subject to corporate taxation on all profits realized within the country.
Working with a professional employer organization (PEO) in Poland can help to mitigate the permanent establishment (PE) risks in the country, and in other countries where your company or your clients conduct business.
Ready to get started? Request a quote!
How Acumen’s International PEO and Payroll Service in Poland can Benefit Your Business
The process of getting your international business operations up and running in Poland has many moving parts, and human resource management is only one of them. To mitigate the potential risks related to onboarding and compensating your local and expat workforce attracted to meet your business needs in Poland and adhere to the country’s taxation requirements, it makes sense to outsource your HR management to professionals who know the ins and outs of employment and payroll in Poland.
Acumen’s global PEO and payroll solution was designed especially for companies like yours, to relieve you of the burden of hiring, compensating and terminating your Polish workforce and expatriate employees. Our unique solution goes beyond outsourcing in helping to compensate your global workforce on your behalf, and take care of all the payroll details while ensuring full compliance with Polish labor and taxation laws.
When you partner with Acumen International, you can rest assured, knowing that your or your clients’ selected Polish human resources are being competently managed. Our team of global employment specialists will see to it that your valued employees – both locals and expats – are well compensated and cared for, ensuring high employee morale and loyalty to your enterprise.
Let Acumen International take care of your selected global talent’s official employment, employee payroll, taxes, contributions and benefits provision, so you can focus on growing your business. All you need to do is pay a convenient monthly invoice that covers all related Global HR expenses. Leverage Acumen’s global PEO and payroll service in Poland, and in 190 countries worldwide where we provide exemplary services to our international clients.
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.