- Overview: Poland
- Global PEO and Payroll
- Global HR Compliance
- Expand without a Company Set Up
- Work permit for hiring expats via PEO
- Contractor vs. employee: which is better?
Global PEO and Payroll in Poland
What Is a Global PEO?
A global PEO, or Global Professional Employer Organization, is a company that specializes in handling human resources for other businesses. A Global PEO can provide a wide range of services, such as payroll processing, benefits administration, tax reporting, workers' compensation insurance, unemployment insurance claims management, employee screening, legal and regulatory compliance assistance, HR consulting, immigration services, and other financial services. Businesses that partner with a global PEO in Poland can outsource many of their HR needs and focus on running their core operations.
With a robust global PEO and payroll solutions provider, you can make global employment decisions quickly and confidently – without getting buried in immigration or labor compliance work. You can quickly and easily employ your pre-selected world-class talent from any country. Perhaps more importantly, with our Global PEO services, we minimize your permanent establishment, employee immigration, or misclassification risk – leaving you free to focus on running your business.
With a Global PEO, you don't need to worry about the cost of maintaining a workforce, recruitment, securing visas or work permits for foreign hires, issuing documents, managing payroll and employee benefits, collecting payroll tax, and paying personal and corporate taxes.
Entering into a partnership with a global PEO who is committed to helping provide excellent employment opportunities. This partnership will enable you to dramatically expand your services and reach in any part of the world.
Global Payroll Management & Compliance in Poland
Managing employees in different countries can be a complex and challenging task. Employees may need to be registered and taxed differently in each country, and there may be other laws that need to be followed. This can make it very hard to keep track of everything and ensure everything is done correctly.
When it comes to payroll, there are many different regulations that you must follow to avoid penalties or litigation. Each country has its laws and regulations, but some standards apply internationally. You must know and adhere to tax deadlines, withholding and reporting laws, and regulations requiring employee tax slip signatures. If you fail to adhere to these payroll compliance rules, you could face severe penalties that could negatively impact your business.
Global payroll management is a complex process that requires careful consideration of various factors. Payroll specialists must consider local regulations and taxation requirements in Poland, which can be time-consuming and difficult to navigate. However, by addressing some key challenges and partnering with a Global PEO, organizations can ensure compliant, accurate, and timely payments.
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 ex-pat employees on your behalf in Poland and take care of all the HR details concerning payroll, taxes, benefits, and termination.
Pay a monthly invoice to cover all your global HR needs in Poland. Leave your or your clients’ selected staff employment hiring and payroll requirements in our capable hands, so you can focus on growing your business.
Global Payroll Calculator: Accurate Global Employment Cost Estimation
When hiring employees and contractors across the globe, you may not be choosing the most cost-effective and business-friendly country.
- Do you know which country is the most cost-effective place to hire employees?
- What are the costs of entity establishment and legal representation?
- What are the payroll costs and management fees?
- What are your ongoing annual tax compliance costs?
- Are you fully aware of banking implications?
- Did you know that labor laws and hidden costs could make your company less efficient when choosing a country to run your business?
- Did you know that there could be a more cost-effective country to hire employees in and save up to 50%?
This is because countries have different labor laws, compliance, and tax regulations. What if, instead of limiting your company’s international expansion by cutting through the jungle of local regulatory compliance, tax, labor, and immigration requirements, you could have all the information of 190 countries at your fingertips?
Acumen International offers the Global Payroll Calculator to help businesses understand the compliance requirements for conducting business in a new country. Acumen’s research team tracks developments in 190 countries around the globe. It provides up-to-date data on local regulations related to tax, payroll regulations, benefits, hiring practices, compliance requirements, and other labor-related factors that impact an employer’s bottom line. This valuable information makes the Global Payroll Calculator an invaluable tool for businesses looking to expand internationally.
Global Payroll Calculator helps companies reduce labor costs by providing up-to-date information on hiring, compensation, and tax requirements. It is also an ideal tool for quickly locating employees in any country.
Disclaimer: 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 other countries we cover.
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What Services Does a Global PEO (Professional Employment Organization) Provide in Poland?
- Global Payroll management;
- Compliance with local tax rules & tax. reporting in Poland
- Handling compliant employment contracts:
- Background, education, and other checks;
- Onboarding and termination processes, as well as employee’s compensation;
- Arranging visas and work permits for employees;
- Ensuring the working process is organized under local labor laws;
- Processing workers’ medical insurance and other benefits (day-offs, bonuses, and more);
- Global employment process maps, matter maps, employment guides, and other documentation.
Payroll Management & Employment-related Taxes in Poland
Foreign employers are not required to withhold taxes on 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 workers’ 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 (appr. USD 29,350)
- 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 every month. 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 other EU countries, or exported to other EU countries. The standard VAT rate is 23%, although reduced rates apply to specific categories. Some goods and services, such as exports and supplies to other EU nations, may be zero-rated or exempt from VAT.
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 expert advice on additional taxes in Poland.
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Tax Residency in Poland
Polish tax residents must 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
You may think you can get away with conducting business overseas without registering a legal entity, but you would be wrong. You might need to register your business even if you're only sending an employee on a temporary assignment or establishing a small promotional office. Failing to do so can result in severe consequences.
Different countries have different laws regarding taxes, and a multinational company must take all of these into account when conducting business. The tax authorities of a particular country can determine which elements of the company's economic activity take place in a particular country and how much profit is attributable to them. This can be a complex process, but ensuring that the company complies with all applicable laws is essential.
How a Global PEO Helps Address Permanent Establishment Risk in Poland
If a foreign company is deemed to officially operate in Poland in case you don’t have an established legal entity. Still, 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.
Partnering with a professional employer organization (PEO) in Poland can help mitigate permanent establishment (PE) risks in the country and other countries where your company or your clients conduct business.
Ready to get started? Request a quote!
A Global PEO Can Help You Replace Numerous Vendors in Poland
If you're looking to streamline your company's operations and get a handle on global workforce management, partnering with a global professional employer organization (PEO) can be a great solution. PEOs can provide a full suite of services to help you replace the following numerous vendors.
- Payroll Company
- Employee Benefits Broker
- HR Consultants
- Background Checks Vendors
- IP Attorney
- Tax Advisor
- Translation service
- Legal Advisor
- Immigration Advisor
- HR Compliance Advisor
- Licensing Consultancy.
Benefits of Global PEO in Poland
- Global employment management centralization. Maximized control. Minimized risk
- A Global PEO facilitates quick talent deployment and provides access to various employee benefits solutions to attract and retain your global talent.
- Eliminating and mitigating certain employment-related risks, including non-compliance and employee misclassification, through the shared responsibility and co-employment arrangement
- Scalable technology and infrastructure provided via the global PEO relationship
- Reduced and stable global employment management-related cost
- A global PEO can facilitate risk-free, quick, and easy market entry by acting as your local legal entity, helping you to avoid the cost and time associated with incorporating into 190 countries
- A global PEO allows you to make your global expansion 100% compliant and secure by keeping track and adhering to all local laws and regulations
- A global PEO helps you remain agile and scales up or down in your selected foreign markets according to your business needs.
- A global PEO facilitates global employment consistency and HR compliance.
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 ex-pat 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 ex-pats – 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 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 190 countries worldwide, contact Acumen’s team of global employment experts.