Companies advancing their international operations into Poland open a vista of opportunities in the Central and Easter Europe (CEE) region, throughout the European Union and further afield.
Challenges come alongside the potential benefits, however. Payroll management is among those challenges, whether your company is considering moving employees abroad or hiring new staff in-country. Employment laws, payroll and income tax regulations are areas where you cannot afford mistakes.
Foreign companies wanting to hire staff and operate their payroll in Poland have the option of establishing a legal entity, although this not a legal requirement. A limited liability company – known as a spolka.z.o.o. – is the typical choice for incoming businesses and requires minimum share capital of PLN 5,000 (€1,100, US$1,260). This is the most popular form of company set-up in Poland. The company must be registered with both the National Court Register (KRS) and Central Register for Information on Business Activity (CEIDG).
Taking this step before running payroll in Poland requires an in-depth knowledge of company, employment, and taxation laws, which changed in January 2022 – and keeping up to date with these changes.
However, there is an alternative and simpler route. Bradford Jacobs’ will navigate around these potential pitfalls effectively and efficiently. We recruit the staff in-country and then put into action our comprehensive knowledge of tax and payroll regulations. As part of our service, Bradford Jacobs files returns, and remits associated payments for tax and social security contributions directly from our payroll system to the relevant authorities.
Outsourcing your payroll in Poland will streamline your operations by dealing with the following:
- Applying for the employees’ Tax Identification Numbers (NIP)
- Registering employees with the Social Insurance Institution (ZUS)
- Registering employees with the National Statistics Agency (GUS)
- Filing forms for remitting tax with the National Revenue Administration (KAS)
- Withholding and remitting tax and social insurance contributions to the relevant authorities
- Compiling Personal Income Tax (PIT) returns comprising all income from employment, including bonuses and overtime, as well as benefits in kind
- Making advance monthly or quarterly PIT payments where required
- Filing PIT returns for employees where required, by April 30 of the year following the tax year