Polish Payroll Services

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Polish Payroll

Successful international expansion depends on making the right moves from day one. This is vital for foreign companies establishing a presence and planning to operate payroll in Poland. Although foreign companies need not set up a legal entity to run payroll in Poland, they must follow an exhaustive procedure of providing documentation and registering with tax and social insurance authorities.

Bradford Jacobs’ Professional Employer Organization (PEO) and Employer of Record (EOR) platforms and networks will provide complete answers to every question your company will encounter moving into the economy.

Our teams step in from the start by dealing with the National Revenue Administration (Krajowa Administracja Skarbowa, KAS) to obtain the Tax Identification Number (NIP) for each employee and also for the company. Further registration steps are also required with the social security agency and the register for business activity.

What Poland Payroll Options are available for Companies?

  1. Remote Payroll: This option allows businesses to operate under a single payroll system, by adding employees in Poland to the parent company’s payroll. However, these employees must operate under different regulations, which is likely to cause problems.
  2. Internal Payroll: You may operate payroll for your subsidiary, especially if you are committed to growing your company’s presence in Poland. However, this does require hiring dedicated HR staff who understand Poland’s employment and compliance laws.
  3. Poland Payroll Processing Company: If you are considering outsourcing, then working with a Polish payroll company will help in processing your payroll – but not when it comes to compliance.
  4. Poland Payroll Outsourcing: However, there is another option available that solves both concerns – by working with Bradford Jacobs. We can handle payroll and compliance for all your employees in Poland. We lift the administrative stress from your shoulders so you can focus on what you do best.

Polish Payroll Services

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

What is required to set up Polish Payroll?

Companies planning to run payroll by establishing a legal entity subsidiary in Poland, typically select a private limited liability company known as a spolka.z.o.o. It operates under Poland’s Company Law, which incorporates the Accounting Act, The National Court Register Act, the Commercial Companies Code, and the Act of Freedom of Economic Activity. Requirements include:

  • Registering with the National Court Register (KRS)
  • Registering with the Central Register for Information on Business Activity (CEIDG)
  • Obtaining company Tax Identification Number (NIP)
  • Registration with the National Revenue Administration (KAS) for Corporate Income Tax (CIT), Value Added Tax (VAT) and for withholding and remitting income tax contributions
  • Registering with the Social Insurance Institution (ZUS)
  • Registering with the National Statistics Agency (GUS)
  • Having one or more shareholders
  • Proof of having deposited minimum share capital of PLN 5,000 (€1,100, US$1,260) in a business bank account
  • The 13-digit REGON number needed to open the account, available from the GUS website once company details have been registered
  • The procedures for forming and dissolving the company
  • Management board
  • A supervisory board if share capital exceeds PLN 500,000 (€110,340, US$126,000) or there are more than 25 shareholders

Once incorporated, other steps must be followed in order to employ staff and operate payroll. The main requirements include:

  • Apply for the employees’ Tax Identification Numbers (NIP)
  • Register employees with the Social Insurance Institute (ZUS)
  • Register 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, disclosing all income from employment, including bonuses and overtime, as well as benefits in kind
  • Filing PIT returns for employees where required, by April 30 of the year following the tax year
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