Establishing and running payroll in Poland
Over the last two decades, Poland has rapidly-become an excellent place to do business. Its economy and overall standards of living have improved significantly, and as a member of the European Union, it provides a useful route of entry to the common marketplace.
If your organization is interested in expanding into Poland, one of your initial steps will probably be to hire employees locally and establish a Poland payroll. This can be a lengthy and difficult process for many businesses, often taking several months to complete and resulting in unexpected delays.
At Horizons, we specialize in helping organizations of all kinds expand internationally, including into Poland. We will handle your Poland payroll outsourcing setup and ongoing management, whether or not you already have a registered in the country.
Why choose the Horizons payroll solution?
If you have an entity
If your organization has already established an official entity in Poland, then you can outsource your payroll setup and management to Horizons to simplify your expansion.
This level of outsourcing is well-suited to larger organizations that are interested in expanding into Poland on a long-term basis.
If you don’t have an entity
If you have not already officially registered an entity in Poland, then you can outsource your payroll setup and management to Horizons, making use of our established Poland subsidiary to act as employer of record.
This option is well suited to organizations looking for a quick, low-risk, and flexible route into Polish hiring and expansion.
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Poland payroll guide
Taxation and withholdings requirements in Poland
Employees and employers in Poland must pay a fraction of salaries to social funds. These contributions cover things like retirement, healthcare, accidents, and so on. Employees usually need to pay around 14% of their salaries, and employers must contribute up to around 18%.
Income tax in Poland for employees is between 17% and 32%, depending on income level.
The corporate tax rate in Poland is generally 19%.
Entitlements and terminations in Poland
Contracts of employment can be terminated at any time if the employer and employer agree on the terms. If not, a notice period must generally be provided before termination. For employees of up to six months, the notice period is usually two weeks. This extends to one month of notice for employees of between six months and three years, and three months of notice if they have been employed for more than three years.
How to establish Poland payroll outsourcing
In most cases, any organization aiming to start a payroll in Poland needs to establish an official entity in the country. This can take longer than expected, as you will need to closely follow Poland’s unique and often complicated business laws.
Alternatively, Horizons can simplify your entire employment and payroll process, helping you get up and running in Poland in a matter of days. Our employer or record service means that you can even benefit from our solutions if you don’t have a registered entity in Poland, using our Poland subsidiary as employer of record for your workforce.
Manage payroll in Poland
Whether it’s EOR service or just payroll management, Horizons’ employment experts can help you get started in 24h.