Employer Of Record Poland
Infotree Global Solutions helps you with overseas business expansion by providing global payroll and employer of record services. We assist you to have your employees on board to fulfill your business needs without establishing a local division in Poland. With Infotree Global, you are able to accelerate your business globally without worrying about legal formalities and delays. An expert is designated to work on your behalf to perform all your in-country legal requirements in compliance with local labor laws.
Table of Contents
• Hiring in Poland
• Employment Compliance
• Employee Entitlements
• Payroll in Poland
• Payroll Tax in Poland
• Challenges When Expanding Into Poland
• Visa and Work Permits in Poland
• Benefits of Poland Employer of Record
• Why Infotree Global Solutions?
Hiring in Poland
Expanding your business in the Polish market will undoubtedly bring you a lot of benefits, and other than that will give your organization a golden opportunity to expand its operations as well. But there are multiple other factors to consider before doing so. Polish employment law seems a bit complex and confusing for a company looking forward to entering the country. The process behind hiring a workforce in Poland comprises many steps, which are often managed by the Poland Employer of Record.
While hiring, you need to follow many steps like providing a proper contract to your employees, which will have all the records associated with the work, like working tenure, time, salary, etc. Other than that, a lot of steps are involved in the tax payment, and special emphasis should be given to social security systems as well. Before you step into the polish market, it is extremely important that you become familiar with these aspects for properly carrying out your business.
There are a host of legal compliances that need to be taken care of while staffing in Poland. Employers are prohibited to discriminate on the basis of characteristics like age, sex, religion, race, nationality, disability, ethnic origin, political belief, sexual orientation, and trade union membership. Your responsibility starts during the recruitment process and to ensure avoiding the legal compliance hassles, it is recommended not to ask for any protected characteristics in interviews with potential employees. In Poland, labor unions are perceived under the Federal Labor Law which is considered as a means of the employees coming together to safeguard their common employment rights. Large labor unions still exist in overseas countries, with a common aim of protecting the rights of employees. Due to this, joint labor contracts are preferred and signed between the representatives of both parties, which are reviewed after a couple of years. When it comes to negotiating terms of an employment contract with an employee for overseas hiring, a Poland Employer of Record helps you to consider the standard benefits.
A legal requirement is to put an employment contract in the local language in Poland. It means the contract should include the terms of the employee’s salary, benefits, and termination formalities. The compensation amount of employees should be specified in Poland currency in the offer letter as well as the employment contract. The employment contract guide comes as a part of the Employment of record services provided by Infotree Global. Hence, you do not require a separate draft for the same. Depending on the work type, most office job hours run at regular shift timings. Compensation is considered as a mandate for overtime and the amount varies depending on industry and company. For work performed over time, the employer is required to pay an add-on of 50% – 100% of gross earnings to employees on top of a regular salary. In Poland, employees are entitled to get 20 to 26 days of paid leave each year depending upon tenure. Our Employer of Record Services in Poland takes care of the vacation policy in contracts.
Payroll in Poland
The Polish currency is the Polish złoty (PLN) that is 1 PLN equivalent to 0.26USD (approx). Employers must know a range of information about the individual they are going to hire as the information will enable the employer to know his employee and enable them to send the salary to his bank account. The mandate Employee information includes name, date of birth, address, telephone, postal address, and pension details Nip number, Qualifications, and so on. Using employer of record services also helps you understand Tax registration requirements that include registration with KRS or CEIDG which holds the responsibility for sending application forms to the Tax Office, ZUS, and GUS (Statistical Office). Social security registration includes official Polish registration documents like NIP, REGON, and KRS. In Poland, social security comprises of old-age pension, sickness and maternity insurance, invalidity pension, occupational diseases, and insurance against accidents at work.
Payroll Tax in Poland
Poland is still undertaking the innovation of its electronic payment systems, which at times adds complexity to many employers paying to foreign employees. International companies need to comply with Polish tax laws with regards to income tax, withholding tax, social security, and sales tax. There are different types of payroll like remote payroll, local payroll, internal payroll, and fully outsourced payroll.
There are multiple taxation laws in Poland for employers to follow. Employers need to register employees with Social Security Bureau within seven days of the joining date. Employers may contribute as much as 18% of employee’s gross monthly earnings to social security whereas employees contribute around 14%.
Additionally, employers have to pay 2.45% of the employee’s gross monthly earnings to Poland’s Labor Fund and 0.1% to the Guaranteed benefits Fund. These are separate from social security and related to unemployment benefits.
Poland Tax Rate Chart:
|Grossed income||Tax Rate (%)|
|Up to 3091 PLN||0|
|Over 85,528 PLN||32|
Companies are allowed to outsource the employment and payroll of their workers in Poland to an Employer of record. It is permitted for both international workers as well as Poland nationals. An EOR manages all factors of payroll for workers in Poland like taxes, withholding, social security, and other statutory needs. Staff is paid every month with tax and social security deducted at the source which is paid to local authorities.
Challenges When Expanding Into Poland
Setting up a company in Poland requires a thoughtful considering of a number of factors including business, location, geography, and regulation. Business factors like the industry and type, the nationality of the headquarters, and availability of existing trade agreements. When it comes to considering the location, different cities and regions may have varied rules, costs, and availability. Hence, it is helpful to seek advice from relevant professionals or take the help of an employer of record Poland depending on your needs.
Poland is known as a country with a somewhat rigid labor code which is a proven challenge to international companies. In Poland, associations are crucial as trust is required to carry out your business operations in a hassle-free manner. Companies can conduct business operations in Poland in a form of a Limited Liability Company, Joint-Stock company, limited Partnership, or Sole Trader. Before selecting which legal form of business to be established, entrepreneurs should observe and understand the scope of responsibilities, size, and running costs of the business.
Visa and Work Permits in Poland
International workers must have valid work permits and visas in Poland, as enforced by immigration laws. Work permits for employees can only be sponsored by a local establishment for organizations starting a business in the Polish market for the first time. When it comes to visa arrangements for immigrants, Poland is known for being inflexible with it. Visas will only be permitted if no suitable Polish residents can be selected for a required position. For obtaining a work permit on behalf of a foreign employee, several documents are required to be served by the employer.
These documents include:
• Application form duly filled
• Application fees payment receipt
• Proof of existence from National Court Register
• Records of an employer’s current economic activity
• Proof of applicant health insurance
• Passport copy
• Copy of employment contract in accordance with service being offered in Poland
• Company deed
All these documents are required to be translated into the Polish language. The work permit cannot be processed in-country or switch business visas to work permits. If you are considering completing the incorporation process with less hassle, it is best to use an outsourced management company like Infotree Global Solutions to act as your employer of record Poland to sponsor the workers for the required permits.
Benefits of Poland Employer of Record
It is crucial to find out how to establish a brand office in a different country like Poland. As the most complex part of hiring talents in Poland, it invites countless worries. By outsourcing the employer of record services in Poland, you can significantly decrease the administrative concerns of hiring in a foreign country. They make international employment easy and simple with their dedicated support in many countries around the world, which means you can easily hire employees with minimal time and cost. An EOR hires your employees on local payout with its extensive professional support. They are also responsible for processing income reports, tax issues, and employee statutory benefits with the ease that enables you to focus on your business operations.
Choosing Poland hiring outsourcing services adds a variety of benefits to your business. Rather than setting up a subsidiary before you think of hiring employees, they make the process faster by utilizing their established Poland PEO. It means they employ workers on your behalf who start working for your organization within a few days. Further, you need not bother about Poland employment compliance because they are the ones who shoulder the responsibility for you.
Why Infotree Global Solutions?
Infotree Global helps you with overseas business expansion by providing payroll and employer of record services in Poland. We assist you to have your employees on board to fulfill your business needs without establishing a local division in Poland. When you use our services, you are able to accelerate your business globally without worrying about legal formalities and delays. A team of experts from Emerald Carpet Cleaning is designated to work on your behalf to perform all your in-country liabilities in compliance with local labor laws.
Infotree Global Solutions enables you to utilize the talent of the smartest individuals in different countries around the world, quickly and smoothly. Whether it is Employer of Record Poland or any other country in the world, Infotree Global assists you at every step.
If you have expansion in mind and want to know more about how Infotree Global Solutions can provide an employer of record solution for your company, connect with us.