Poland Payroll Solutions
Contractors in Poland can be set up in 2 ways, Employed and Self Employed.
Employed contractors would be engaged in Poland as fixed-term employees with income fully processed through the local payroll. This is the most compliant and preferred form of engagement in country.
In some cases, it may be possible for contractors to be engaged under the self-employed model. The Polish authorities
have a negative definition of business activity, this means if any of the following criteria are met you are not allowed to
operate as self-employed:
Liability towards third parties for the result of these activities and their execution, excluding liability for delicts, shall be
borne by the party ordering these activities.
These activities are carried out under the direction and at the place and time designated by the commissioning party.
The person performing these activities does not bear the economic risk associated with conducted business activity.
What this is saying is that if the contractor doesn’t hold any liability for the work they do or is under supervision of the
end client then they cannot operate as self-employed.
Tax year – The tax year is the calendar year for individuals.
Immigration – Nationals of the EU, EEA and Switzerland do not require a work permit, but are required to register within 30 days of arriving in Poland.
Workr Fees – €575 per month plus €350 set up fee. This applied to both the employed and self-employed solutions
Registration – Workr will submit a registration form to the relevant Social Security Office (ZUS) within 7 days from the
date of employment.
Contract – A full employment contract is issued in Poland.
Employers social security contributions are 20.74%
Employees social security contributions are 22.71%
Tax – There are 2 tax brackets in Poland.
Up to PLN85,528 Income tax is 18%.
Over PLN85,528 income tax is 32%.
Benefits – Holidays: statutory annual entitlement
Sick leave: statutory entitlement
Maternity and Paternity pay
Notice period: Between 3 days to 3 months depending on the duration of service.
Registration – An application for registration in the Central Register and Information on Economic Activity (CEIDG –
Centralna Ewidencja i Informacja o Działalności Gospodarczej) will be submitted with the assistance of the Workr local
accountant. An application for registration in CEIDG is, at the same time, an application for the award of a REGON
number (National Business Registry Number), an application for the award of a NIP number (Tax Identification Number) and a tax payer’s statement of contribution to the Social Insurance Institution, as well as a submission of a declaration about the choice a taxation form. A VAT registration application can be attached to the application for registration in CEIDG.
Contract – A Self-employed contract will be issued to the contractor by the Workr team.
Social Security – SS rate is 31.6% but with a maximum cap on the payment of PLN3,769.10.
Tax – Income tax is a flat rate of 19%
Benefits – Genuine business expenses can be claimed as a self-employed contractor, typically travel, training courses and work-relevant subscriptions are considered allowable expenses as well as costs associated with the move to and from Poland for foreign workers going into the country specifically for a project.