Alternative for employer of record polska
Hiring in Poland without a local entity.
It’s easier than you think.
At a glance
A foreign company from the EU, EEA, or Switzerland can legally hire an employee in Poland on an employment contract without opening a Polish branch or setting up a limited liability company (LLC). The solution lies in the EU mechanism of transferring ZUS (Social Security) payer duties to the employee. Discover how this model works in practice and why it is significantly cheaper than global intermediary platforms (Employer of Record).
Discover the “Direct Employer of Record” mechanism – a legal, EU-compliant way to hire Polish talent without opening a branch. An expert guide by Precyzja Accounting Firm.
Content verified by:
Olga Bielecka
Chief Accountant, Precyzja
The Story of Klaus from Berlin and Kasia from Krakow
Imagine this scenario. Klaus runs a rapidly growing startup in Berlin. For weeks, he had been searching for an outstanding IT Architect. He finally finds Kasia – an expert from Krakow with the perfect track record. They both want to start working together immediately under stable, European conditions.
However, Klaus’s German accountants panic. “Setting up a Polish LLC for just one person? Notary costs, months of formalities, double taxation…” – it’s a logistical nightmare. Traditional global intermediary platforms (EOR) demand draconian commissions (even €600-€1000 monthly per person), and Kasia doesn’t want to work on an unstable B2B contract. She wants a standard, secure employment contract.
The solution? Transferring the ZUS payer duties to the employee (within the EU).
EU Law: Your Key to the Polish Market
Thanks to EU regulations, specifically Art. 21 sec. 2 of Regulation (EC) No 987/2009, an employer from the EU, EEA, or Switzerland who does not have a branch in Poland can enter into a special agreement with the employee.
The company in Berlin continues to finance all costs and remains Kasia’s full legal employer. Kasia, in turn, takes on the technical role of the “payer” towards the Polish Social Insurance Institution (ZUS). This model enables hiring in Poland without a local entity and is fully accepted by the Polish authorities.
We take the entire administrative burden off the employee’s shoulders, acting as their proxy before Polish tax and social security offices.
How does it work in practice (for EU companies)?
Pays the “Gross-Gross” amount
Receives the full amount
(Social Security)
(Income Tax)
The employee becomes the distributor of funds. We manage this entire process.
⚠️ Expert Warning: What about companies from the USA and UK?
The mechanism of transferring payer duties to the employee (described above) applies exclusively to relations with employers from the European Union, EEA, and Switzerland. Social security law does not allow this solution for entities from so-called third countries, such as the United States.
If you are a US company hiring in Poland, the principle of lex loci laboris applies. This means the American corporation must directly obtain a Polish Tax ID (NIP) and register as a foreign contributor (ZUS ZPA form). Furthermore, the US employer must comply with the Polish Labor Code (paid holidays, strict protection against dismissal), which clashes with the flexible at-will employment model in the US. The preferred market alternative here is the popular B2B contract.
Regardless of whether your company is from Berlin, New York, or London – Precyzja Accounting Firm will guide you through the appropriate, 100% legal path. We know the realities of both EU law and bilateral social security agreements.
The ZUS Puzzle: What’s included in the salary?
For a foreign employer, the Polish insurance system is a complex matter. The total employer cost is more than just the gross salary. See what elements make up the mandatory social security contributions (ZUS).
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🔵
Pension Insurance (19.52%)
The foundation of future retirement. This cost is split evenly (9.76% each) between the employer and the employee.
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🔴
Disability Insurance (8.00%)
Protection in case of inability to work. The employer pays 6.5%, the employee 1.5%.
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🟡
Sickness Insurance (2.45%)
Insurance ensuring paid sick leave (L4). Financed entirely by the employee.
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🟢
Labor & Solidarity Fund (2.45%)
Contributions to state employment support funds. Financed entirely by the foreign employer.
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🟣
Accident Insurance (~1.67%)
Insurance against workplace accidents. Financed by the employer (the rate depends on the business sector).
Taxes and the Currency Trap
While insurance laws depend on the employer’s country, Polish tax law requires the employee to be completely independent in both scenarios (EU and non-EU). A foreign entity without a branch is not a PIT (Personal Income Tax) remitter in Poland.
According to Art. 44 sec. 1a of the Polish PIT Act, the employee must calculate and pay income tax advances independently by the 20th day of each month.
The real challenge begins when the salary is paid in a foreign currency (e.g., EUR, USD). The employee must convert every payment into PLN using the average National Bank of Poland (NBP) exchange rate from the last working day before the payment. Calculation errors lead to penalty interest and issues with the Tax Office. Additionally, the foreign employer will not issue an annual tax statement (PIT-11), complicating the annual tax return (PIT-36).
The chart illustrates how much the tax advance amount can fluctuate with a fixed foreign currency salary, solely due to the dynamics of currency markets. Our payroll services take this mathematical nightmare off the employee’s shoulders.
Pros and Cons of the Art. 21.2 Model (for EU/EEA)
✔️ Why it’s brilliant (Pros)
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1.
Massive savings: You avoid the costs of lawyers, notaries, and the share capital required to open an LLC in Poland.
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2.
Recruiting Advantage: The best specialists in Poland value the stability of an employment contract much higher than B2B arrangements.
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3.
Speed: The hiring process can be finalized in just a few days while maintaining full compliance with EU law.
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4.
No expensive EOR platforms: You save on the massive commissions imposed by global intermediary corporations.
❌ The Trap (Cons to avoid)
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!
Risk for the employee: Left to their own devices, the employee will get lost in the maze of ZUS regulations and complex tax transfers.
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!
Currency stress: Calculating EUR/USD to PLN exchange rates independently every month and sending declarations to offices is incredibly time-consuming.
Ready to build your team in Poland without a branch?
We take over 100% of the administrative, registration, and payroll duties. Depending on whether your company is based in the EU or the US, we will implement the optimal and legal billing model. You focus on business, we handle the taxes.
We respect our clients’ time as well as our own. We invite companies that are determined to fully delegate their employment process (Direct Employer of Record) and are looking for a reliable accounting firm for long-term cooperation.
Precyzja Accounting Firm – Your payroll services expert in Poland.
📞 Call us to discuss cooperation details: +48 532 88 44 66Learn more about our services and updated regulations:
Legal Basis and Sources: The service is based on, among others, Regulation (EC) No 987/2009 (for the EU area), bilateral social security agreements (e.g., PL-USA, information on ZUS websites), the Act on Healthcare Services, and the PIT Act.
Important Disclaimer: Labor law and taxes, especially in the context of international employment and the Employer of Record (EOR) model, require careful and individualized business analysis. Please note that under Polish law, accounting firms provide accounting and payroll services, not legal or strict tax advisory. At Precyzja, we prioritize your absolute safety – that is why, for complex implementations, we constantly cooperate with licensed tax advisors and renowned law firms. Our goal is to ensure that your solution is 100% legal and designed by the right experts.
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