HR and payroll services in Poland. How much does it cost and what you get within the service?

HR and payroll services in Poland. How much does it cost and what you get within the service?
Marek Cieślak

Marek Cieślak

CEO CGO Finance

Human resource is the biggest asset in every enterprise. In the era of globalization it is more and more important to be able to engage people globally effortlessly. This is why HR and payroll services have been trending in recent years. Let’s see of what HR and payroll services in Poland consist of and how much they cost.

Table of Contents

Payroll in Poland. What do the HR and payroll services for the enterprise consist of?

Before discussing the costs of HR and payroll services, we should first establish what they include. There is no denying that some duties that are part of HR and payroll services have been automated. This concerns, for example, calculating salaries, keeping personnel files and reporting them to ZUS. Yet, this does not mean that everything can be dealt with only with help of new technologies. It is worth considering what is included in the duties of employees of the HR and payroll department. The commonly used abbreviation HR stands for human resources.

Payroll in Poland. What does the HR and payroll department do?

The main task of an HR and payroll specialist is to manage the human potential of the company. From reporting a new employee to all the necessary registers and databases, through settling remuneration and holiday leaves, to finalising termination of the employment relationship.

Payroll in Poland. What are the responsibilities of the HR and payroll department?

Among the basic duties of employees in the HR and payroll department are:

  • calculating remuneration and preparing payrolls for employees,
  • preparation and settlement of contracts of mandate and contracts for specific work,
  • keeping records of employees’ remuneration,
  • keeping employees’ personnel files, 
  • Registration of employees in the Social Insurance institution [Polish: ZUS], 
  • preparing and submitting ZUS (Social Insurance Institution) and  PIT statements for registering and settlement purposes, 
  • preparing personnel and payroll documentation,
  • maintaining and updating personnel documentation,
  • preparing employees’ annual returns,
  • issuing employment and earnings certificates.

You should remember that concluding an employment contract is not necessary in every case. It may turn out that a civil law contract or cooperation in the B2B form will be more beneficial for the parties. Yet, improper adjustment of the contract to the form of work may be interpreted as a way to circumvent the law. This may even result in a complete contestation of the validity of a given contract. As a consequence, a civil law contract may be recognized as an employment contract. Any negative consequences will of course influence the employer. Adequate knowledge of labour law is essential to avoid this type of situation. An experienced specialist will be able to identify the proper form of employment. An initial analysis of the scope of duties and the form of the performance will be enough to do that.

Payroll in Poland. What are the costs of providing HR and payroll services for a company?

The costs of HR and payroll services depend on many factors, two of which play the most important role. The first one is the size of the company, and the second – its location.

As indicated before, a popular factor affecting the cost of such accounting and HR services is the number of hired employees. The cost of payroll service for one employee in Poland can range from 83 PLN to 140 PLN gross. The difference results from the location where the company is based. The lowest costs for HR and accounting services are in Lubuskie and Kujawsko-Pomorskie Voivodeships. The highest – in the Mazowieckie Voivodship, which should come as no surprise. The cost of HR and payroll services for employees in Poland ranges from 79.87 PLN to 114.88 PLN gross. The average price of HR and payroll services for employees in Poland amounts to 92.92 PLN gross.

Payroll in Poland. Outsourcing of accounting and payroll services or internal HR department – what is more profitable?

There is no unequivocal answer to the question of whether it is more profitable for the employer to maintain an internal HR department or to delegate HR and payroll responsibilities to the outside company. In practice, a mixed solution is the most common one. It involves hiring an internal specialist with daily insight into the company’s processes. His main responsibility is to cooperate with a specialized external entity.

Payroll in Poland. What is the biggest advantage of such a solution?

Above all, cooperation with a specialized office will reduce certain costs. Especially those associated with maintaining IT infrastructure, purchasing specialized software and training employees. Consequently, the main drawback of training in the field of accounting and HR duties is not only their high cost but also the frequency. It is difficult to predict them, as it depends on the number of changes in the regulations. Outsourcing such services for a predetermined rate allows for greater predictability. You should also remember about the less obvious costs related to the employment of internal specialists. These result from the need to provide employees with a workplace and its equipment.

If this article was interesting for you and you want to know more on the topic it concerned we encourage you to contact us. Specialists from our law firm in Poland, will be happy to help. If you are interested in company registration in Poland visit our dedicated landing page.

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