What you need to remember when you hire personnel

Hiring dedicated and talented staff is the secret behind functioning of every successful enterprise. However, finding the right people for the job is a challenge unlike any other. If you feel like you do not have the time, patience or skills needed to select the new employees, consider using the services of a professional recruitment specialist that will carry out the whole recruitment process for you while you will just make the final call on the top candidates.

Finding the right people is not the end of the road. What you should take into account are numerous legal requirements that come in together with a new co-worker. First of all, select the employment contract. Employees may be hired to do a specific task, for a specific period of time or for unspecified period of time. A good option when employing new people is putting them on a contract for a trial period. Choosing the right contract may save you money and stress, so consult an advisor if you are not sure which one to choose.

Personnel means labour costs and payroll obligations. When you think about employing staff, salary is the obvious thing to consider. You probably thought about and negotiated remuneration in the recruitment process. However, there are some additional payments on the part of both the employer and the employee. These are the so-called “contributions” to Social Insurance Institution, or ZUS. ZUS contribution is technically tax liability. They decrease the pre-tax employee salary and are mandatory. If you are self-employed, you also fall under the obligation to make monthly ZUS payments.

In Poland, the relations between an employer and an employee are regulated by the Labour Code or the Civil Code. The acts specify the duties and obligations of both the entrepreneurs hiring staff and the employees hired by a company. Whether or not an employer complies with the regulations may be verified by Chief Labour Inspectorate.

What This Means for Businesses in Poland

Tax policy changes in Poland have direct implications for both domestic and foreign-owned businesses. Companies operating in Poland must stay informed about regulatory developments to optimize their tax position and maintain compliance. The Polish tax system includes CIT (19% standard, 9% for small taxpayers), VAT (23% standard rate with reduced rates of 8% and 5%), and various sector-specific levies.

For international entrepreneurs and investors, understanding the Polish tax landscape is essential for business planning. Poland offers several attractive incentives including the Polish Investment Zone (up to 15 years of CIT exemption), R&D tax relief (up to 200% deduction), and the IP Box regime (5% effective CIT rate on qualified intellectual property income). Professional tax advisory can help identify the most beneficial structure for your specific situation.

The interplay between Polish domestic tax law and international tax treaties is particularly important for foreign-owned entities. Transfer pricing regulations, withholding tax provisions, and anti-avoidance rules (GAAR) require careful navigation to ensure both compliance and optimization.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our tax advisory services in Poland, or contact us for a free consultation.