Payroll Outsourcing in Poland: Core Functions

Payroll calculation and payslip management

The fundamental services provided by payroll outsourcing providers in Poland include gross-to-net payroll calculation and pay stub management, with figures calculated in Polish Zloty (PLN) or US dollars (USD), depending on the company’s requirements. Payroll amounts are carefully computed based on earnings, deductions, and minimum wage requirements. This process also ensures compliance with pay frequency rules and local labor laws. 

In Poland, payroll teams must handle payroll taxes, including PIT (personal income tax) advance withholding and mandatory social insurance contributions, which are managed through ZUS (Zakład Ubezpieczeń Społecznych). Employers are responsible for withholding, reporting, and remitting these amounts, and the process must align with Polish tax year requirements.

Additionally, payroll providers must track contribution caps for pension and disability benefits, as well as PPK (Employee Capital Plans) contributions, which require accurate payroll calculations and timely remittances. Special attention must be given to employee identifiers, such as PESEL, used for tax and social insurance reporting, and NIP (Numer Identyfikacji Podatkowej), used for employer and employee identification, to ensure proper payroll compliance and avoid errors in statutory filings.

Payroll reconciliation

Payroll reconciliation is the control step that verifies HR inputs, payroll calculations, and banking files line up before payments are released - and that payroll totals tie back to accounting for solid fiscal validity.

A reputable provider should perform the following checks:

  • Pre-payroll checks that validate headcount, contract or salary changes, payroll cycle cutoffs, and any exceptions (such as overtime, bonuses, or leave) that might impact deductions.
  • Post-payroll controls that verify net pay against bank files and ensure the totals match the accounting outputs. These checks also ensure the banking requirements are met for payment file formatting and execution dates.
  • Audit-ready documentation that provides clear tracking of approvals and changes is useful for internal and external audits throughout the financial year. This documentation ensures that overtime pay and statutory reporting obligations, such as severance pay, are correctly handled.

Statutory contributions and reporting

In Poland, payroll isn’t complete until statutory contributions and reporting are done. A good provider must understand how Polish payroll administration ties calculations to mandatory filings - because it’s the reporting (not the payslip) that ultimately proves compliance.

Payroll providers need to ensure accurate calculations of Employer payroll contributions for social security, pension, disability, and health insurance, while employers must ensure correct payments based on the employee's employment model, whether FTE (Full-Time Employee) or B2B (contractor).

Contribution type

Employer payroll contributions

Employee’s share

FTE employment model

Social Security Contributions - 20%  

Social Security Contributions - 22.7% of salary 

PIT (progressive) - 12% up to PLN 120,000 (~USD 29,800), then 32% on the excess 

B2B employment model

Not mandatory 

PIT - 12% 

No mandatory Social Security Contributions

In addition to statutory payroll contributions, businesses in Poland that are VAT payers must charge VAT on services, including payroll outsourcing. If your business is VAT-registered, you can reclaim VAT on payroll service fees and other business-related expenses, helping to offset the costs of outsourcing payroll while maintaining compliance with tax regulations.

Mandatory benefits management

Poland's labor law mandates several employee benefits, which payroll providers must manage correctly, including:

  • Paid annual leave: 20 working days with < 10 years of experience, 26 days with > 10 years of experience
  • Public holidays: 14 paid holidays.
  • Sick leave: The company pays 80% of the salary for the first 33 days.
  • Maternity leave: 140 calendar days.
  • Paternity leave: up to 2 weeks.
  • Overtime rules: 150% of the regular rate in regular hours and 200% at night, on Sunday, or public holiday; as an alternative, may be compensated with time off. 

Important: And don’t forget about contributions to the Guaranteed Benefits Fund (FGŚP), which ensures worker protections in case of employer insolvency.

Payroll providers may also include non-mandatory benefits such as Telework Allowance, which compensates employees for remote work expenses and must be handled correctly in payroll calculations and payslips.

Ensuring compliance with these mandatory benefits not only reduces legal risk but also improves employee satisfaction, making it an essential part of payroll outsourcing in Poland.

Post-payroll reporting 

Once payroll is processed, it is important to generate reports that reflect all payroll components, including bonuses, overtime, and statutory contributions, to ensure that all aspects of the payroll cycle align with legal and accounting outputs. These reports must be available for internal use and for statutory filing, including annual reporting requirements such as the PIT-11 for employees.

In short, payroll outsourcing in Poland requires meticulous attention to detail in tax filing, payroll reconciliation, and mandatory benefits management, ensuring compliance with Polish law while maintaining transparency and efficiency throughout the payroll cycle.

Ad-hoc Services Provided by Payroll Companies in Poland

The best payroll outsourcing providers in Poland don’t stop at payroll processing. They go one step further by covering the “everything around payroll” work that improves payroll accuracy, reduces the operational load on your team, and eliminates the need to coordinate multiple vendors, so your pay frequency stays stable even as the business scales fast.

Here’s a quick breakdown of the ad-hoc services you’ll often see from stronger providers - especially useful for global employment setups and teams scaling in Poland.

Ad-hoc service

How it works

Why it matters for tech leaders

Employer of Record (EOR)

The provider becomes the legal employer under their Polish entity. They manage employment contracts, payroll processing, statutory deductions, benefits, and compliance, while you manage day-to-day work.

Useful when you want to hire in Poland in less than 30 days, and not in 3 months, without setting up a legal entity. Removes a lot of compliance load from your internal ops.

Professional Employer Organization (PEO)

A co-employment / HR back-office model that supports your team when you already have (or operate through) a Polish entity. Typically includes payroll processing, HR administration, benefits support, and ongoing compliance coordination.

Best when you want to keep your entity and control, while outsourcing the heavy operational lifting. Helps scale without building an internal payroll/HR department.

Payroll audits

A structured review of payroll accuracy and controls: reconciliation routines, approval trails, exception handling, and documentation quality. Often includes checks around pre-payroll validation, payroll cycle controls, and audit-ready evidence packs.

Reduces “surprise” exposure during audits, due diligence, or finance reviews. Useful for VC-backed companies that need payroll to be defensible, repeatable, and easy to explain.

Local taxation & labor law guidance

Ongoing guidance (either in-house or via legal/tax partners) on how changes in Polish tax/labor rules impact payroll processing, deductions, employment terms, and reporting routines.

Prevents situations of law changes. Helps you keep payroll stable even when rules shift.

HR admin services

The operational glue between HR paperwork and payroll execution: onboarding/offboarding workflows, contract administration, time/absence inputs, document management, employee record upkeep, and coordination needed for pre-payroll validation.

Keeps payroll from getting blocked by missing or inconsistent data. This matters most when you hire fast, run variable compensation, or manage hybrid teams across locations.

Alcor

Alcor is a software R&D center provider, founded in 2017, that helps Western tech product companies build and operate nearshore/offshore teams across Latin America and Eastern Europe.

With its own legal entities in key locations, Alcor supports payroll outsourcing to Poland as part of its EOR solution and ensures 100% compliance with local tax and labor laws. The company supports hiring through its recruitment services, helping teams scale from 10 to 100+ developers within a year, and provides full operational support, including office leasing, hardware procurement, and employer branding, so that companies can launch in a new location in as little as one month.

Note: The company has recently migrated its website to alcor.com, which is now the main source of information about its services.

Tax compliance expertise

Alcor handles payroll under an EOR framework, acting as the legal employer and liability layer for labor law and payroll tax obligations in the hiring country. In practice, this includes gross-to-net calculations, payroll taxes and social contributions, statutory payments, and required filings under a single compliance model, without splitting responsibilities across multiple providers.

Payroll processing speed & quality

Alcor aligns the operational requirements upfront - scope, pay frequency, timelines, and approvals - then sets up a payroll calendar with cut-off dates, processing windows, and correction timelines. After go-live, Alcor runs recurring gross-to-net payroll processing and payslip administration as part of the monthly cycle, with ongoing payroll support, reporting, and operational follow-through.

Pricing transparency

Alcor uses a custom Employer of Record in Poland pricing approach with 

  • no advance payments,
  • no onboarding fees, 
  • no buy-out/exit fees.

For each engineer, the gross salary is agreed between the client and the candidate, and Alcor charges an EOR fee as a percentage of salary, shown as a separate line item on the invoice. As headcount grows, volume discounts can apply, and fee changes follow service scope changes rather than automatic increases.

As headcount grows, volume discounts can apply, and fee changes follow service scope changes rather than automatic increases.

Employee data security

Alcor’s automated platform provides secure access for payroll review and approvals, along with a document hub for employment-related files. Data privacy and IP protection are part of the core delivery: Alcor includes signed NDAs as part of the legal setup. They help protect confidential business information and support a broader risk-management approach that safeguards sensitive data across the full employment lifecycle.

Customer support SLA

Alcor uses a customized payroll SLA. The SLA is defined upfront and tailored to your payroll schedule, approval workflow, and preferred level of control.

During onboarding, Alcor aligns payment dates with the time required for payroll review and approvals, then sets a custom payment calendar that both parties follow. Alcor’s team takes ownership of on-time, accurate payouts and supports the process through a Dedicated Customer Operations Manager who proactively communicates when anything needs attention.

Integrations & automation

The automated platform AlcorOS is used to access and manage payroll, benefits, contracts, and team structure, with a transparent approval process and payroll history tracking.

Automation is applied where it reduces manual coordination (e.g., time-off records auto-syncing into payroll), while monthly payroll preparation and execution are run under Alcor’s operational team. The goal is simple: less manual coordination, more visibility, fewer missed steps.

Expansion flexibility

Alcor delivers EOR and payroll across Latin America and Eastern Europe, covering Mexico, Colombia, Poland (including key tech hubs Warsaw, Kraków, and Wroclaw), Romania, and Ukraine. For tech companies planning to expand, the advantage is regional depth. Alcor’s coverage targets markets with strong business infrastructure, established tech ecosystems, and tax incentives for tech, while giving access to a combined talent pool of 3.8 million developers across two focus regions.

Best fit

Weaker fit

Alcor works best for tech product companies scaling engineering teams in LATAM and Eastern Europe that want EOR & payroll as part of a broader software R&D center solution, with recruitment, compliance, and operations under one roof.

Alcor may be less suitable if you want payroll-only as a standalone service, prefer a fully self-serve platform with minimal human involvement, or need one provider for a very broad footprint far beyond Alcor’s core regions (LATAM & Eastern Europe).

Payroll 360

Payroll 360 is one of the payroll outsourcing service providers in Poland and an HR administration company founded in 2013, and headquartered in Kraków. The firm focuses on running end-to-end payroll operations onshore in Poland, alongside HR administration workflows, including time & attendance tracking, overtime settlement, and compliant reporting.

Tax Compliance Expertise

Payroll 360’s scope covers the “statutory side” of payroll administration in Poland: preparing settlement declarations for the tax office (US), ZUS, and PFRON, generating transfer files to these institutions, and handling insurance documentation via Płatnik. 

Support during official inspections is also included in the service scope.

Payroll processing speed & quality

Their payroll outsourcing scope goes beyond “just calculating payroll”: maintaining employee files, tracking working time/absences/leaves, monitoring critical deadlines, and preparing/registering employment and civil-law contracts.

They also offer PPK (Pracownicze Plany Kapitałowe) administration as an add-on within the outsourcing package.

Pricing transparency

A public price list isn’t published on the website. Instead, the site clarifies what is included in the monthly service scope (payroll, HR admin handling, document digital archiving, benefits settlements, annual declarations, and ePUE administration), so clients can evaluate what’s inside the fee before requesting a quote.

Employee data security

Payroll 360’s information security management system aligns with ISO/IEC 27001, demonstrating that the company applies recognized standards for securely handling payroll and HR documentation. Security is also reinforced through controlled access to HR documents and encrypted online access practices.

Customer support SLA

Instead of a universal SLA statement, the operating model is built around continuous online access (24/7 platform availability) and a dedicated contact person who oversees deadlines and settlements. Delivery is available nationwide, with an on-site option available when needed.

Integrations & automation

The delivery stack is closely tied to Enova365, a Polish ERP (Enterprise Resource Planning) system, for HR and payroll operations. The company also offers ERP migration support, helping companies migrate payroll operations from legacy systems to more automated workflows.

Expansion Flexibility

The coverage is Poland-first: the model supports companies operating across Polish cities without switching providers, using remote delivery and standardized HR/payroll workflows.  The company also provides regulatory update content (e.g., EU pay transparency timelines), which is useful when payroll processes must be adjusted due to changing rules.

Best fit

Weaker fit

Payroll 360 is best suited if you need Poland-only payroll outsourcing with robust compliance administration, optional PPK handling, and strong security protection aligned with ISO 27001.

It may be less suitable if you need a single vendor for multi-country payroll/EOR.

MDDP Outsourcing

MDDP Outsourcing is one of the larger Poland-based providers of accounting, HR, and payroll outsourcing services, with delivery teams located in Warsaw and Katowice. The company was established in 2007.

Tax compliance expertise

Payroll services cover the full compliance chain: payroll calculations, plus reporting and submitting statements to ZUS, the tax office, and PFRON. Additional HR/payroll coverage includes employee onboarding documentation and ongoing personnel administration, which reduces “missing paperwork” issues that can block statutory reporting.

Payroll processing speed & quality

The payroll scope includes ongoing maintenance of payroll data, remuneration calculation, payroll settlement, and reporting - structured as an end-to-end service rather than isolated calculations. 

Pricing transparency

Pricing isn’t published as a public rate card on the website. Instead, the site breaks down what falls under Payroll & HR outsourcing (HR admin, payroll processing, electronic payslips/PIT-11, PPK support, and related add-ons), making it easier to scope requirements before requesting a quote.

Employee data security

MDDP offers electronic employee files via FlexiHRM with access-right management, user activity logs (GDPR-oriented), electronic signature functionality, and structured retention/completeness controls - useful for audit trails and controlled document handling. 

Customer support SLA

MDDP Outsourcing provides a dedicated payroll/HR outsourcing service, with specialists available through their Warsaw & Katowice teams, supported by modern systems designed to ensure reporting and settlements remain on time.

Integrations & automation

This Polish company uses advanced IT systems to automate HR/payroll workflows, electronic employee files, and integrated reporting tools, enabling clients to control data in real time. When talking about payroll, MDDP Outsourcing offers services such as electronic payslips and PIT-11, as well as online HR & payroll solutions.

Expansion flexibility

MDDP supports companies across industries and scales. For payroll, this provider can support growth in headcount and payroll complexity (multiple pay elements, benefits, reporting requirements) without forcing you to rebuild the process each time.

Best fit

Weaker fit

If you want a Poland-based provider that combines payroll, HR admin, and accounting under one roof.

If you’re looking for a single provider for multi-country payroll/EOR, MDDP is likely not the best match, as it’s optimized for Poland operations with outsourcing depth rather than international employment coverage.

Oyster

Oyster is a global employment platform founded in 2019 that helps companies manage distributed teams through EOR and global payroll services. For companies considering payroll outsourcing to Poland, Oyster’s Global Payroll can support payroll operations through one platform.

Tax compliance expertise

Global Payroll covers tax-withholding logic, payslips, and payroll reports that support compliant payroll runs across supported countries. It also provides access to payroll specialists, which is useful when you need to translate local rules into correct payroll actions (including local tax filing steps tied to payroll periods).

Payroll processing speed & quality

Oyster’s workflow supports reviewing and editing payroll runs in a structured flow, generating payslips, and producing real-time reports. Payroll inputs can be consolidated through time-off and expense tracking, helping reduce last-minute changes that usually slow down payroll cycles.

Pricing transparency

Oyster publishes Global Payroll pricing at USD 29 per employee/month. However, the total cost can increase if you need more than payroll processing. If you don’t have your own entity in Poland and require full EOR services to hire specialists, pricing shifts from the Global Payroll plan to the EOR model. 

Employee data security

Oyster confirms completion of a SOC 2 Type II audit and shares access to security documentation via its policy/security dashboard.

Customer support SLA

Global Payroll includes access to global payroll consultants and a guided setup flow for adding your payroll entity in the platform. Oyster also maintains process-specific documentation for common payroll operations (payslip access, changes).

Integrations & automation

Oyster supports syncing payroll data with HRIS and expense management tools to reduce manual work. It also offers an API for moving payroll and workforce data into internal systems and dashboards.

Expansion flexibility

Global Payroll is available in 30 countries and supports payroll payments in multiple currencies, helping companies scale payroll operations as they add new locations.

Best fit

Weaker fit

Oyster fits best if you want a single platform for global payroll workflows and need HRIS/expense integrations, while running Polish payroll through a structured process within a broader global setup.

Oyster may be less suitable if you need payroll coverage in countries outside its Global Payroll footprint, or if you want a Poland-only provider that also handles broader local HR administration beyond the payroll platform.

Remote

Remote is a global employment platform that simplifies multi-country payroll and HR management by consolidating payroll calculations, tax obligations, payments, and compliance into a single platform. The company also offers complementary services, including Employer of Record (EOR), Contractor Management, and APIs, enabling clients to manage their entire global workforce from a single platform.

Tax compliance expertise

Remote ensures full tax compliance for payroll in Poland by handling tax filings, payroll calculations, and the required statutory filings for Polish employees. This includes managing tax withholdings, social security contributions, and other Polish regulatory requirements.

Payroll processing speed & quality

Remote prioritizes automation in its Polish payroll services, ensuring that salary deposits, tax handling, and statutory deductions are processed quickly and accurately. By eliminating manual data entry, Remote reduces payroll admin overhead and ensures on-time, compliant payroll execution for Polish employees.

Pricing transparency

Remote offers its payroll services at $29 per employee/month, with additional costs for EOR services or legal expertise. The price may vary depending on the scope of services needed, especially for companies hiring in Poland without a local legal entity.

Employee data security

Remote maintains SOC 2 Type II compliance and ISO/IEC 27001 certification, ensuring that employee and payroll data, including employee information, is securely managed and protected. Remote’s platform also includes Remote Watchtower, which alerts customers to any compliance changes that may affect Polish payroll or tax withholding.

Customer support SLA

Remote offers customized SLAs tailored to each customer’s payroll schedule and workflow. Clients have access to global payroll consultants for payroll issues, ensuring payments are handled and compliance matters are addressed.

Integrations & automation

Remote’s platform integrates with HRIS and other business systems to automate payroll processing, reducing manual intervention and ensuring payroll is seamlessly managed alongside global HR workflows.

Expansion flexibility 

Remote supports Poland along with 100+ other countries, allowing companies to scale their teams and manage payroll across multiple regions.

Best fit

Weaker fit

Remote is a choice for companies seeking to streamline payroll and HR management without setting up a local entity. The platform is suited for companies that need global payroll services with in-country expertise and are looking to scale rapidly in Poland and other countries.

Remote may not be the best option if you are seeking pure payroll services in Poland without the need for additional EOR or legal expertise. The platform is designed for businesses that require a global workforce solution, so it may not suit those looking for a single-country solution with minimal additional services.

Top Payroll Companies in Poland with Full PPK Administration

  • MDDP Outsourcing provides payroll services with PPK administration, ensuring compliance with Polish labor and tax laws. They handle PPK contribution calculations, statutory filings, and payroll cycle integration for businesses operating in Poland.
  • Alcor excels in offering EOR & payroll services with full PPK administration as part of its broader R&D center solution. They ensure compliance with Polish tax laws and PPK regulations, handling everything from contribution calculations to remittances. Alcor’s ability to scale teams rapidly, from 10 to 100+ developers, while maintaining compliance across multiple countries, makes them a good choice for growing tech companies.
  • Payroll 360 specializes in PPK administration and seamlessly integrates it into its payroll outsourcing services. The company’s approach combines automation with human oversight, ensuring PPK contributions are handled accurately while offering a transparent and secure payroll experience for businesses in Poland.

Payroll Outsourcing Providers in Poland for VC-Backed Companies

  • Alcor offers payroll outsourcing in Poland as part of its EOR solution, helping VC-backed companies scale their teams while managing compliance with local tax and labor laws. They handle bonuses, payroll calculations, and statutory filings as part of their end-to-end payroll services, supporting team growth and expansion to 30+ devs in just 3 months.
  • Oyster provides payroll services in Poland, ensuring payroll compliance across multiple countries. With a focus on bonuses, tax withholdings, and local regulations, Oyster’s automated payroll system allows VC-backed companies to manage international teams while keeping payroll processing simple and efficient.
  • Remote offers payroll outsourcing with a focus on tax compliance and the management of bonuses across countries. Their platform supports VC-backed companies by providing a fully managed payroll service, including tax filings and compliance for international teams, making it easier to hire and manage employees in Poland.