Market entry and payroll in Poland
Hire Employees in Poland Without Setting Up a Polish Company
A foreign company can employ people in Poland directly without incorporating a Polish company. The key issues are the applicable social security system, allocation of ZUS obligations, Polish PIT treatment, employment law and permanent establishment risk.
Last updated: 23 August 2026
Send us the employer's country of incorporation, planned roles, work location in Poland and start date. We will assess the appropriate structure and required registrations.
Social security
Which ZUS structure can a foreign employer use?
The earlier distinction between a small-team model "without ZUS" and ZUS registration for larger teams is too broad. The first question is which country's social security legislation applies to the individual employee. Headcount is not a statutory test.
1. Polish rules, employer as contribution payer
If Polish social security applies, the foreign company can register with ZUS as a foreign contribution payer. The company remains the foreign employer.
2. Polish rules, employee performs payment duties
An employer from the EU, EEA or Switzerland without an establishment in Poland may agree with the employee that the employee performs the contribution payment duties on the employer's behalf. This is not an exemption from Polish ZUS.
3. Social security in another country
For a posting or multi-state activity, another country's social security legislation may continue to apply, usually confirmed by an A1 certificate. Polish ZUS contributions are then not due for the confirmed period.
Comparison of the main social security arrangements
| Situation | Who performs the ZUS duties? | Typical evidence or registration |
|---|---|---|
| Polish social security, employer registered | Foreign employer as the Polish contribution payer | NIP, employer registration with ZUS and employee registration |
| Polish social security, duties performed by employee | Employee performs contribution payments on behalf of the employer | Agreement under Article 21(2) of Regulation (EC) No 987/2009 and the required ZUS registration |
| Social security of another country | According to the rules of the competent country | A1 certificate or evidence under an applicable bilateral agreement |
Process
How we set up employment in Poland
- Assess the social security position Review the work location, employer's country, posting or multi-state activity and any existing A1 certificate.
- Determine responsibility for ZUS obligations Decide whether the employer registers as contribution payer or, where legally available, the employee performs payment duties on the employer's behalf.
- Prepare registrations Prepare NIP, ZUS forms, powers of attorney and employee registration. Statutory ZUS registration deadlines apply, typically seven days from the date the insurance obligation arises.
- Align employment documentation Review the employment contract, mandatory information, working time, leave, sickness rules, occupational health and safety and personnel documentation for the specific setup.
- Set up payroll, PIT and payments Establish gross-to-net calculations, ZUS reporting, payment instructions and the allocation of PIT responsibilities between employer and employee.
Example
Foreign manufacturer hires service technicians in Poland
A foreign manufacturer wanted to hire technicians directly to work at customer locations in Poland. The company did not want to establish a Polish subsidiary during the initial stage.
We reviewed the social security position, prepared the foreign employer registration, set up Polish payroll and coordinated the employment documentation. Permanent establishment risk was assessed separately.
Result: The employees remained directly employed by the foreign company. The structure was implemented without incorporating a Polish company, with Polish payroll and ZUS handling based on the agreed legal setup.
PIT
ZUS registration and Polish payroll tax are separate issues
Registration of a foreign employer with ZUS does not automatically mean that the employer is also required to withhold and remit Polish PIT advances.
If employment income is paid from abroad and no Polish payroll withholding is operated by an employer, the employee generally pays Polish PIT advances directly. Whether the foreign employer has Polish withholding obligations depends in particular on its tax presence, the applicable double tax treaty and the actual employment structure.
Payments
Is a Polish bank account required?
A Polish bank account is not a general condition for ZUS registration or payment of social security contributions. ZUS contributions can be transferred from abroad to the payer's individual contribution account using the IBAN format.
A Polish business account may simplify recurring local payments, especially where several Polish payments are made each month. Whether it is useful is therefore primarily an operational question, not an automatic legal requirement.
Employment law
Which employment law rules apply?
For employees who habitually work in Poland, Polish employment law is normally the central reference point. A choice of foreign law in the employment contract cannot deprive the employee of mandatory protection that would apply without that choice.
Typical obligations
- Employment contract and legally required information.
- Working time, overtime and working-time records.
- Minimum remuneration, holiday entitlement and sick pay.
- Occupational health and safety, medical examinations and personnel files, where applicable.
Additional checks
- Residence and work permits where the employee is not entitled to work in Poland without a permit.
- Posting rules where the work in Poland is temporary.
- Local powers of attorney and signing authority.
- Termination requirements and dispute procedures.
Payroll
Monthly payroll for a foreign employer
- Collection of salary changes, absences and variable remuneration data.
- Gross-to-net calculations and payslips.
- ZUS calculations, reporting and payment instructions where Polish social security applies.
- PIT calculations and documentation of who is responsible for the tax payment.
- Support with onboarding, offboarding and payroll corrections.
Permanent establishment
When can employees in Poland create permanent establishment risk?
Hiring employees in Poland does not automatically create a permanent establishment. The result depends on the actual activity in Poland and the applicable double tax treaty.
Typical risk factors
- An office, warehouse or other business premises are permanently available to the foreign company in Poland.
- Employees habitually conclude contracts or play the principal role leading to their conclusion.
- The Polish team performs material operating functions of the business.
- The Polish operation is permanent and commercially integrated into the local market.
Home office
Working from an employee's private home does not automatically create a permanent establishment. Under the updated OECD commentary, relevant factors include the extent and duration of work from that location and whether there is a commercial reason for carrying on the business in that country.
The applicable treaty and the employee's actual functions and authority remain decisive.
Polish company
When is a Polish limited liability company the better structure?
A Polish company is not required simply because you employ people in Poland. It may become the clearer structure where the Polish operation develops into a permanent business presence with its own infrastructure, local contracts, management functions or recurring local revenue.
The company creates a clearer corporate and tax framework for the Polish activity. It does not remove the need to assess specific tax, payroll and employment law obligations.
Our support
How Sarego Finance supports foreign employers
Structure and registration
- Assessment of the social security model.
- NIP and ZUS registration where required.
- Powers of attorney and registration documents.
Ongoing payroll
- Gross-to-net calculations and payslips.
- ZUS reporting and payment instructions.
- PIT calculations based on the agreed tax responsibility.
Tax and employment law
- Permanent establishment assessment.
- Coordination of employment contracts and HR documentation.
- Support during ZUS, tax and labour inspections.
Enquiry
Clarify the employment structure before the first working day
For an initial assessment, send us the employer's country of incorporation, work location, planned headcount, start date and information about any office, warehouse or local signing authority.
FAQ
Frequently asked questions
Can a foreign company employ people in Poland without setting up a Polish company?
Yes. The foreign company can remain the direct employer. Before employment starts, the social security position, PIT treatment, employment law and any permanent establishment risk should be assessed.
Must every foreign employer register with ZUS?
No. The applicable social security legislation must be determined first. If Polish rules apply, the employer normally registers as contribution payer or, where EU coordination rules allow it, the employee performs contribution payment duties on the employer's behalf. If a valid A1 certificate applies, another country's system may remain applicable.
Can the employee perform the foreign employer's ZUS payment duties?
For employers from the EU, EEA and Switzerland without an establishment in the competent state, an agreement under Article 21(2) of Regulation (EC) No 987/2009 may be available. The employee then performs contribution payment duties on the employer's behalf. The employer's underlying responsibility remains.
Does the foreign employer need a Polish bank account?
Not for ZUS payments as such. Contributions can be transferred from abroad to the payer's individual ZUS contribution account using the IBAN format. A Polish account may simplify recurring local payments but is not a general condition for choosing the employment structure.
Who pays Polish PIT on the salary?
It depends on the tax structure. If employment income is paid from abroad and no Polish payroll withholding is operated by an employer, the employee generally pays Polish PIT advances directly. Whether the foreign employer has Polish withholding obligations must be assessed separately.
Does home office in Poland automatically create a permanent establishment?
No. Relevant factors include actual use of the location, duration and extent of the work, whether there is a commercial reason for the business to be carried on in Poland and the employee's functions and authority. The applicable double tax treaty must also be reviewed.
When should a Polish sp. z o.o. be considered?
Where the Polish operation becomes permanently operational, uses its own infrastructure, enters into local contracts or performs material functions in Poland, a Polish company may provide the clearer structure. The decision depends on the business model, not headcount alone.
Your team
Who handles your case
Tax oversight
Jerzy Gaweł
Tax Advisor. Responsible for tax structure, PIT and permanent establishment questions. Advisory services are available in English, German and Polish.
View profile
Payroll and HR
Szymon Smoleń
HR and Payroll Specialist. He supports employers with payroll processing, employee documentation, onboarding, offboarding and day-to-day HR administration in Poland.
View payroll profile
First point of contact
Wiktoria Buczek
First contact, document collection and coordination of the employment and payroll setup.
Send enquiryWe usually reply within one business day.