HR and payroll services in Poland play a very important role in the workplace. Although more and more procedures are being replaced by modern technologies, people and their skills very often constitute the most valuable assets of the company. Since the provisions of applicable law offer employers many possibilities with regard to work duties, the form of employment should be analysed individually in the case of every workplace.
Payroll Poland navigation
- HR and payroll services provider in Poland
- Full scope of HR and payroll services in Poland
- Costs of employment. HR and payroll services in Poland
- Why you need HR and payroll services provider in Poland?
- How can a foreign entity employ staff in Poland?
HR and payroll services provider in Poland
As part of HR and payroll services we offer support in:
- calculation of remuneration and preparing payroll for employees,
- preparing and settlement of mandate contracts and contracts for specific work,
- keeping remuneration records, maintenance of personal files of employees,
- registering employees in ZUS (the social insurance institution),
- preparing and submitting ZUS (the social insurance institution) and PIT statements for registering and settlement purposes,
- preparing employees’ annual returns,
- preparing personnel and payroll documentation, maintaining and updating personnel documentation,
- preparation of statistical reports required by regulations of labor law
- issuing employment and earnings certificates.
Full scope of HR and payroll services in Poland
CGO Finance supports customers throughout the whole employment process – starting from integrating a new employee into all the necessary registers and databases, through settling remuneration and holiday leaves, to completing all the formalities connected with the termination of the employment.
Our services include taking over the responsibilities connected with the administration of personnel records and payroll calculations. Our HR and payroll services are addressed to companies that hire people both on the basis of contracts of employment and civil law contracts.
Costs of employment. HR and payroll services in Poland
Employing staff involves various costs, such as social security contributions, health insurance contributions, and taxes. Foreign nationals working in Poland generally require a work permit, adding another layer of complexity to the hiring process. Moreover, labor law in Poland is intricate, with specific rules governing employment contracts, notice periods, and termination of employment.
Understanding these costs and navigating the complex Polish labor law is essential for a successful business expansion. Partnering with a knowledgeable payroll service provider can help you manage these costs and ensure compliance with local regulations.
In addition to the direct costs of employment, there may be additional costs related to human resources management, such as training and development programs, medical checks, and employee benefits. A professional payroll service provider can offer guidance on these aspects, ensuring that your business remains compliant with Polish labor laws while providing a competitive and attractive environment for your employees.
Why you need HR and payroll services provider in Poland?
By outsourcing payroll services to a professional service provider, you can save valuable time and resources that can be dedicated to your core business operations. Moreover, these specialists will handle payroll compliance, ensuring that your business remains in line with the ever-evolving local regulations.
Finding a reliable partner for your payroll needs is essential for the success of your business expansion. With their expertise and commitment to quality, payroll services providers in the country can help you navigate the complexities of the Polish payroll services landscape, ensuring that your employees are paid on time and in compliance with local laws. With the assistance of CGO Finance you do not need to worry about frequent changes in Polish regulations – we got you covered.
Payroll management
Payroll management is a critical aspect of any business expansion, and it can be particularly challenging in a foreign country with complex regulations, such as Poland. HR and payroll services providers in the country offer comprehensive services to help you manage payroll services efficiently and in compliance with local laws. From registering your business and employees with the tax and social security authorities to managing payroll calculations and deductions, HR and payroll services providers like CGO Finance handle every aspect of payroll management. They ensure that your business remains compliant with Polish labor law, social security, and tax regulations, reducing the risk of fines or legal issues.
In addition to managing payroll processes, these service providers also offer support in other areas, such as HR advisory, labor law compliance, and time and attendance management. Partnering with a professional HR and payroll services provider can help you streamline your business operations and focus on growing your business.
HR support
Human resources management and support is essential for businesses expanding into Poland, as the country’s labor laws and regulations can be complex and require extensive knowledge of local practices. Payroll services providers in the country offer a range of human resources management and support services, from payroll outsourcing to HR administration and personnel services. With the assistance of CGO Finance you do not need to worry about frequent changes in Polish regulations – we got you covered.
These HR support services can help you save time and money, as well as ensure that your business remains compliant with local regulations. However, it is essential to choose a reliable provider with a strong track record of delivering quality services and maintaining data security and privacy.
By partnering with an experienced payroll services provider, you can rely on their expertise to handle complex HR tasks, such as managing employment contracts, termination, and salaries. This allows you to focus on your core business operations while ensuring that your employees are well taken care of.
Compliance assistance
Ensuring compliance with local laws and regulations is a top priority for businesses expanding into Poland. Payroll services providers in the country offer a range of compliance assistance services, from reviewing company policies for local compliance to providing labor law support and helping with the hiring process.
In addition to payroll calculations and HR administration, these service providers can also assist with the registration of your business and employees with the relevant tax and social security authorities. By outsourcing these tasks to a professional service provider, you can ensure that your business remains compliant with Polish regulations and avoid potential legal issues. With the assistance of CGO Finance you do not need to worry about frequent changes in Polish regulations – we got you covered.
Partnering with a payroll services provider can help you navigate the complex regulatory environment and ensure that your business remains compliant with local laws. With their expertise and commitment to quality, these providers can offer you the support and guidance you need to succeed in the Polish market.
How can a foreign entity employ staff in Poland?
Employment by a Polish SPV
The employment of an employee by a Polish entity is the most common solution. Many foreign companies set up a subsidiary in Poland, only to employ workers in Poland. And although the subsidiary is a separate entity and its employees are subordinate to the subsidiary, the work is actually provided to the parent company. There are also cases where the daughter company does not carry out own activity at all. At the same time the parent company finances its entire activity. The costs of employing employees and maintaining the subsidiary in Poland are financed, and the subsidiary does not, for example, sell its own products.
In such a case, the formalities related to the employment of a worker are standard and do not differ from the situation of employment by entities owned by Polish residents. Employer has to report the employment of an employee to the Polish Social Security Institution (ZUS). You should also inform the employee about the terms and conditions of employment. You should also refer him for medical examination before starting work.
Employment by a branch of foreign company
We mentioned there that the branch does not have its own legal personality. It is a part of the foreign company. Therefore, for example it is the foreign entrepreneur who will be the party to the court trial, not the branch. However, we also mentioned that this rule does not apply, to cases concerning employees’ issues.
This is because, in the case of employees, a branch of a foreign company is an employer. It is not a part of a foreign company. Therefore, the branch of the foreign company carries out all employment related formalities.
However, in addition to the ‘usual’ employment duties, the branch must register itself with relevant Tax Office. In order to do so, the branch must send a notification on an official tax form (NIP-8) before it hires the first employee. The branch is then issued with a separate Tax Identification Number (NIP), which will be used in order to fulfil obligations related to employment of workers (payment of social security contributions and advance income tax payments for employees).
Employment through a foreign company
But is it absolutely necessary to set up an entity in Poland in order to employ a worker here?
The answer to this question is negative. A foreign entity can employ worker directly. However, if the employee is a Polish resident, he or she will be subject to social insurance in Poland. This means that the foreign company will have to comply with obligations related to the employment. It will have to e.g. pay social insurance contributions. To this end, the foreign employer should be reported to the social insurance institution (ZUS), as is the case with a Polish employer or a branch of the company.
However, any notification of the employee to the social insurance institution (ZUS) should be made using the employer’s Polish NIP number. A foreign company – for obvious reasons – will not have such a number. It is therefore necessary to obtain one. A foreign entity that does not have a branch in Poland issues an application for a NIP number to the Second Tax Office in Warsaw. The application must be filed on the official form (NIP-2). Only after obtaining a NIP number, the foreign employer reports himself to the social insurance institution (ZUS) as the payer of social insurance contributions.
Employing workers in Poland by an employer who does not have its registered seats or representative office in Poland
One more solution is worth noting. An employer who does not have its registered seats or representative office in Poland may conclude an agreement with an employee, under which the employee will take over the duties of a social security payer. In such a case, it is the employee himself who reports for social insurance and calculates and remits to the social insurance institution (ZUS) the contributions due. The employee will have to make notification to the social insurance institution (ZUS) office competent for his or her place of residence. A copy of the agreement (of taking over social security payer) concluded with the employer must also be attached to the notification to the social insurance institution (ZUS). In order to register with the social insurance institution (ZUS), the employee must have his or her own NIP number. If an employee does not have one, he or she must apply to the tax office for it).
Of course, there is nothing to prevent a foreign employer or an employee who has taken over the social security payer’s duties from hiring an external accountant or HR specialist to represent them in front of the social insurance institution (ZUS) in regards to fulfilling duties related with social securities.
When it comes to advance payments for income tax – if an employee works for a foreign employer who does not have its registered seats or representative office in Poland, then it is the employee himself who is responsible for calculating the advance payment for income tax and paying it to the relevant tax office. There is no need to sign separate agreement in this matter.
Many years of experience as well as practical knowledge regarding employment law and social insurance, make the services of our company adaptable to the needs and expectations of every businessman. We use verified and trusted accounting software. At the customers’ request, we may operate remotely on their tools used for accounting as well as HR and payroll procedures. For full list of services click here.
