09 Jun 295 views

Payroll Tax in Poland

Poland payroll & taxation

Poland is largely still undertaking the modernisation of its electronic payment systems, which makes payment to foreign employees complex at times as many employers continue to pay in cash. While there is no payroll tax in Poland, foreign companies are required to comply with Polish tax laws, primarily in regards to individual income tax, social security, withholding tax, and sales tax.

Your Payroll Options in Poland

Remote Payroll

A remote payroll in Poland is where a foreign company, i.e. a non-resident company, payrolls a resident employee in Poland. One of the options available for a non-resident company to payroll its employees (local and foreign) in Poland is to use a fully outsourced service like a GEO or FESCO which will employ and payroll the staff on their behalf.

Local Payroll Administration

Most employers in Poland utilise the country’s electronic clearing system, ELIXIR, to submit employee payments, while many others still pay in cash. In order to use ELIXIR, the employer needs to have a Polish bank account and a local signatory with the authority to represent the company.

Unlike many other countries, personal income tax deductions collected through payroll in Poland are the same for all employees, rather than a ‘pay as you go’ model.

Internal Payroll

Larger companies with a commitment to Poland may wish to run their own local payroll for all employees, foreign and local. In order to accomplish this, they will have to complete incorporation, register the business and then hire the necessary staff. There will be a need for in-country human resources personnel who have the background needed to manage a Polish payroll, and can fulfill all tax, withholding, and payroll requirements.

This approach carries significant cost and requires some knowledge of local employment and payroll regulations. The company will need a local accounting firm and potentially legal counsel to ensure full compliance with Polish employment laws.

Fully Outsourced Payroll & Employment

Companies can outsource the employment and payroll of their staff in Poland to a GEO, like AtoZ Serwis Plus GEO. This is possible for both foreign workers and Poland nationals. This is the easiest, fastest and safest way to payroll staff in Poland.

AtoZ Serwis Plus GEO manages all aspects of payroll for workers in Poland, including taxes, withholding, social security payments and other statutory requirements. AtoZ Serwis Plus GEO becomes the Employer of Record and employs the staff on behalf of the client.

Staff are paid monthly with tax and social security deducted at source and paid to local authorities. AtoZ Serwis Plus GEO will invoice the client monthly in advance of the payroll date. The invoice consists of the Total Cost of Employment (Base salary + Employers Statutory Contributions + Additional statutory contributions) and a Management Fee. AtoZ Serwis Plus GEO provides the employees with payslips.

Category: Polish citizenship PESEL Short stay in Poland

Tags: #Residence card # ZUS #Foreigners in Poland