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Payroll in Poland

Payroll in Poland

Payroll in Poland is the list of a company’s employees who need to be remunerated by the company for their work, for a pre-determined period, and on a given date, usually monthly.

Payroll services in Poland can be outsourced and our team can offer this type of service. The employer is required to make social security contributions and advance payments on the income tax of his employees’ salary.

In Poland, social security contributions are remitted by the employer, calculated as part of the employee’s taxable earnings. To these, the employee himself will also make his own healthcare contribution. Company owners will need to observe these payments.

Below, you can read more about the social security contributions, and what you are expected to follow in terms of payroll management in Poland.

Our Polish company formation agents are able to answer any other questions about corporate taxation, the applicable rates, as well as the reporting requirements.

Social security contributions in Poland

In Poland, the employer is the one responsible for remitting the social security contributions. The following rates and principles apply:

  • both the employer and the employee make social security contributions of a total of about 35% of the employee’s salary;
  • approximately 21% of the contributions are paid by the employer and 14% by the employee;
  • the employee contributions are deductible when calculating the taxable earnings for the respective employee;
  • the employer is also the one to collect and remit the employee’s 9% healthcare contribution (in some cases, this can be lower);
  • Employee Capital Plans apply to companies in Poland irrespective of their number of employees (a type of retirement savings plan).

Please note that the rates listed above were in place at the time this article was written. These can be subject to change.

Do you have questions about other issues, other than the contributions that are made as part of payroll in PolandOur team can answer your questions.

Taxation in Poland

All companies incorporated in Poland, whether as a locally registered legal entity or as a branch of a foreign company, are expected to follow the tax laws and the requirements for tax filing and payment, along with preparing and submitting the annual financial statements.

Payroll in Poland is the total amount of wages payable by a company. To these wages, business owners will also need to add the costs incurred with the social security contribution portion payable by the employer, as well as all the other taxes. Our team lists some of the most important taxes for companies below:

  • Corporate income tax: 19% standard rate and 9% reduced rate (available to small taxpayers and those companies starting their activities with revenues that do not exceed 2 million EUR in the respective year; certain exceptions apply;
  • Dividends: generally exempt from taxation (conditions apply); when taxable, dividends can be subject to a withholding tax of 19%;
  • Value-added tax: a standard rate of 23% and two reduced rates of 8% and 5% apply; some types of goods and services can be zero-rated or exempt;
  • Other taxes: stamp duty, real property tax, transfer tax; our team can answer your questions concerning these taxes;

Additionally, Poland has signed more than 80 tax treaties with other EU and non-EU countries.

Tax compliance and requirements

Company owners in Poland should be concerned with all their tax liabilities, the needed submissions, and filings, in addition to the Polish payroll. They must make sure that they observe the tax filing and payment calendar (which also includes the deadlines for the VAT filing and payment for companies that are subject to this tax).

Receiving personalized solutions and answers to tax-related questions is easier when outsourcing these matters to a local team of Polish accountants, such as our own.

Contact us for more information about payroll, the relevant taxes, and tax compliance in Poland.