Poland has become one of Europe’s fastest-growing hiring destinations for global companies, particularly in technology, shared services, engineering, finance, and customer support. Its skilled workforce, competitive labour costs, and EU market access make it attractive for international expansion. However, for foreign companies without a local presence, running payroll in Poland as a non-resident employer involves strict labour, tax, and social security compliance.
Polish payroll compliance is governed by the Labour Code, personal income tax regulations, and mandatory social security contributions administered by ZUS. Even hiring a single employee in Poland can trigger payroll registrations, ongoing filings, and employer liabilities. Payroll errors often lead to penalties, labour inspections, employee claims, and permanent establishment (PE) risk.
From Asanify’s perspective, payroll in Poland is not a routine HR task it is a regulated compliance function that directly impacts legal and tax exposure. This guide explains how non-resident employer payroll works in Poland, why it is challenging, the legal hiring models available, and how an Employer of Record (EOR) in Poland enables compliant hiring in 2026.
What Is Non-Resident Employer Payroll in Poland?
For global companies, this concept is critical because payroll obligations in Poland are determined by where the employee performs work, not where the employer is incorporated. Even without a Polish legal entity, foreign employers may still be subject to Polish labour law, tax withholding, and social security requirements from the first hire. Without a compliant structure, salary payments alone can create regulatory exposure.
Non-resident employer payroll in Poland refers to situations where a foreign company pays employees who live and work in Poland without operating through a Polish-registered legal entity. Despite the employer being headquartered abroad, Polish employment and tax laws apply based on work location.
Who Qualifies as a Non-Resident Employer in Poland?
A non-resident employer typically includes:
- Foreign companies without a Polish subsidiary or branch
- Overseas businesses hiring Poland-based employees for EU or regional roles
- Global companies testing the Polish market before entity setup
This differs from:
- Poland-incorporated employers
- Employer of Record arrangements, where the EOR becomes the legal employer in Poland
Understanding this distinction is essential, as employer obligations depend on who is legally recognised as the employer under Polish law.
How Non-Resident Employer Payroll in Poland Works
Payroll in Poland generally involves:
- Salary payments in Polish złoty (PLN)
- Withholding personal income tax (PIT)
- Mandatory employer and employee social security contributions
- Issuance of compliant payslips
- Monthly and annual filings with tax and social security authorities
Even without a local entity, foreign employers may still be exposed to these obligations, making payroll processing in Poland high-risk without local expertise.
Why Payroll in Poland Is Challenging for Non-Resident Employers
Payroll compliance in Poland extends beyond salary calculation and is closely linked to labour inspections, social security enforcement, and tax reporting requirements. Non-resident employers often underestimate the complexity of Polish payroll rules. Even minor inconsistencies can escalate into penalties or employee disputes.
Polish Labour Laws and Employee Protections
Employment in Poland is governed by the Labour Code, which regulates:
- Minimum wage requirements
- Working hours and overtime limits
- Paid leave and public holidays
- Termination rules and notice periods
Payroll must align with these protections, as violations frequently result in labour inspections or employee claims.
Income Tax (PIT) Withholding and Reporting
Poland operates a pay-as-you-earn system. Employers must:
- Withhold PIT at applicable rates
- Submit monthly tax filings
- Issue annual income statements to employees
Errors in withholding or reporting can result in fines and audits by tax authorities.
Social Security Contributions (ZUS)
Polish payroll includes mandatory contributions to ZUS, covering pensions, disability, sickness, and health insurance. Employers must calculate and remit contributions accurately and on time. Non-compliance often leads to retroactive liabilities and enforcement action.
Permanent Establishment (PE) and Corporate Tax Risk
Hiring employees in Poland can create permanent establishment risk, especially if employees perform sales, management, or decision-making activities. Payroll mismanagement increases scrutiny from tax authorities.
Legal Models for Running Payroll in Poland as a Non-Resident Employer
Choosing the right payroll model in Poland directly impacts legal validity, compliance exposure, and scalability. Each option carries different responsibilities for employment law adherence and tax reporting. Early decisions are difficult to reverse and have long-term risk implications.
Direct Payroll Without a Polish Entity
Some companies attempt to pay employees directly from overseas. This approach is risky because:
- Polish labour and social security laws still apply
- Registration with ZUS and tax authorities is complex
- Compliance without local infrastructure is difficult
- Scaling beyond a few hires becomes legally unstable
This model is rarely suitable for sustainable hiring.
Setting Up a Polish Entity
Establishing a local entity allows full control but involves:
- Company incorporation and registrations
- Ongoing payroll, tax, and labour compliance
- ZUS enrolment and reporting
- Higher administrative and operational costs
This option suits companies planning long-term operations in Poland.
Employer of Record (EOR) in Poland
An Employer of Record provides a compliant alternative:
- The EOR becomes the legal employer in Poland
- Payroll, tax withholding, and social security are handled locally
- Employment contracts align with Polish labour law
For most non-resident employers, EOR is the fastest and lowest-risk way to hire in Poland.
Payroll Processing Requirements Under Polish Labour and Tax Laws
Payroll processing in Poland is actively monitored by tax and labour authorities and requires precise alignment across contracts, payroll records, and statutory filings. Employers must ensure accurate calculations, timely submissions, and consistent documentation. Any mismatch can trigger inspections or retroactive liabilities.
Salary Structure and Statutory Payroll Components
A compliant Polish payroll includes:
- Base salary meeting statutory minimums
- Overtime and bonus calculations
- ZUS social security contributions
- Health insurance and tax deductions
Incorrect payroll structuring often results in compliance issues or disputes.
Payroll Compliance Calendar (Poland)
Payroll compliance typically includes:
- Monthly payroll runs and PIT filings
- Monthly ZUS contributions
- Annual income reporting and employee certificates
Missed deadlines can lead to penalties and audits.
How an Employer of Record (EOR) Simplifies Non-Resident Employer Payroll in Poland
For non-resident employers, an EOR provides a compliant operating layer that absorbs local regulatory complexity. By acting as the legal employer, the EOR manages payroll, tax filings, and labour law compliance locally. This model significantly reduces operational friction and regulatory risk while enabling faster market entry.
Compliance Ownership and Risk Mitigation
With an EOR:
- The EOR in Poland assumes local employer responsibilities
- Payroll, tax, and ZUS filings are handled correctly
- Exposure to employee claims and penalties is significantly reduced
- Permanent establishment risk is mitigated through proper structuring
End-to-End Payroll and HR Operations
A Poland EOR manages:
- Payroll processing and compliant payslips
- Tax withholding and social security administration
- Employment contracts aligned with Polish law
- Ongoing HR documentation and employee lifecycle support
This enables foreign companies to scale Polish teams confidently.
Why Global Companies Choose Asanify for Non-Resident Employer Payroll in Poland
Asanify combines Poland-specific compliance expertise with transparent, execution-driven payroll operations. Its EOR framework ensures statutory accuracy, ZUS alignment, and full labour law compliance while giving global employers visibility and control over employment costs.
Global companies choose Asanify for:
- Poland-aligned payroll and employment compliance
- Transparent statutory cost breakdowns
- End-to-end Employer of Record services
- Scalable solutions from one hire to distributed teams
Asanify enables compliant hiring in Poland without the cost and complexity of entity setup.
Key Risks of Getting Non-Resident Employer Payroll in Poland Wrong
In Poland, payroll non-compliance can result in:
- Labour inspections and fines
- Employee claims and disputes
- Retroactive social security liabilities
- Tax penalties and interest
- Reputational and investor risk
Even small payroll errors can escalate into formal enforcement action.
Conclusion
Running non-resident employer payroll in Poland requires strict adherence to labour laws, income tax withholding rules, and mandatory social security obligations. Even without a local entity, foreign companies remain fully responsible for payroll accuracy, statutory contributions, and employee protections. Attempting to manage Polish payroll without local expertise often leads to compliance failures and increased regulatory risk.
An Employer of Record provides a compliant and scalable solution for hiring in Poland. By assuming local employer responsibility, an EOR ensures payroll processing, tax reporting, and labour law compliance are handled correctly. Asanify’s compliance-first EOR and payroll services enable global companies to build Polish teams confidently in 2026 without regulatory uncertainty or operational burden.
FAQs
What is non-resident employer payroll in Poland?
Non-resident employer payroll in Poland refers to a foreign company paying employees who live and work in Poland without establishing a local legal entity, while still complying with Polish labour law, tax rules, and social security requirements.
Can a foreign company run payroll in Poland without a local entity?
A foreign company can pay employees without an entity, but Polish labour law, PIT income tax withholding, and mandatory ZUS social security obligations still apply, making direct payroll complex and high risk.
Is Employer of Record legal in Poland for payroll?
Yes, Employer of Record services are legally accepted in Poland and widely used by foreign companies to hire employees compliantly without setting up a local entity.
What labour laws apply to non-resident employers in Poland?
Poland’s Labour Code applies to all employees working in Poland and governs wages, working hours, leave entitlements, notice periods, and termination protections.
How is income tax deducted for employees hired in Poland?
Employers must withhold personal income tax (PIT) through payroll and report it to Polish tax authorities via monthly and annual filings.
What social security contributions are required in Polish payroll?
Payroll must include mandatory employer and employee contributions to ZUS, covering pensions, disability, sickness, and health insurance.
What is the difference between non-resident payroll and EOR payroll in Poland?
With non-resident payroll, the foreign company remains the employer and bears compliance risk. With EOR payroll, the EOR becomes the legal employer and manages payroll, tax, and labour compliance.
Does hiring employees in Poland create permanent establishment risk?
Yes, hiring employees in Poland can create permanent establishment risk if payroll and employment structures are not set up correctly. Using an Employer of Record significantly reduces this risk.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.