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January’s Paying People Abroad

Paying People in Poland

This month’s look at International Payroll turns its focus on Poland – one of the most populous members of the European Union.

The Company

In order to set up a company in Poland, a bank account is first required. Social Security (ZUS) registration is also required when a company comes to employ its first employee.

Companies though, are not required to register as an employer for tax purposes, as all companies are regarded as potential employers by virtue of their Corporation Tax registration.

Personal Income Tax

An individual pays tax on their income as a wage earner or as a self-employed person. The tax for an individual who meets the criteria of a “permanent resident” in Poland will be calculated on their income in Poland and abroad. A foreign resident who is employed in Poland pays tax only on their income earned in Poland.

Personal Income Tax (PIT) is collected through the payroll. There are no PAYE codes as the same deduction rules apply to every employment.

Income	Tax Rate
Up to PLN 3,089	0%
PLN 3,089 – PLN 85,528	18%
Over PLN 85,528	32%

Social Security (ZUS)

Employees’ and Employers’ contributions rates are as follows:

Fund	Employee %	Employer %
Retirement*	9.76	9.76
Disability	1.5	4.5
Sickness	2.45	-
Accident**	-	From 0.67 to 3.33
Labour**	-	2.45
Guarantee***	-	0.10

* On income up to a defined amount, reviewed annually

** Depending on the industry

*** Employers are not obliged to pay Labour Fund and Guarantee Fund in certain circumstances

Ceridian provides payroll services in over 50 countries, including Poland, helping international businesses stay compliant, gain more control and improve cost management. For more information, contact our International services team on 0800 0482 737.