HR and payroll Archives

Keeping records of working time is an essential activity from the point of view of both the employer and the employee, but it is also one of the basic obligations of the employer. The register should be kept for each employee separately. Detailed information contained in the employee’s working time register is used to control compliance with the regulations on the working day, correct calculation of remuneration and other benefits under the employment relationship.

Carefully kept records of working time allow us to believe that the employer cares about its employees, and the entire process with great professionalism. What are the obligations to keep records of working time? Who should keep records of working time? We will answer these and many other questions in our article.

Mandatory information in the working time records

The basic obligation of every employer is to keep records of working time for people who have been employed by them under an employment contract. The purpose of such records is to correctly determine the amount of remuneration and other benefits resulting from work.

According to the current regulations, the working time records should contain information on:

number of hours worked,
start and end times of work,
the number of hours worked at night,
the number of overtime hours,
the number of hours of on-call duty, as well as the start and end times of on-call duty, with an indication of the place where it is performed,
non-working days, with the designation of the title for granting them,
statutory sick leaves, with an indication of the legal basis for granting them and an indication of the amount,
other excused absences from work, indicating their type and duration,
unexcused absences from work, with an indication of their duration,
information on the working time of an adolescent worker in work prohibited for adolescents, the performance of which is permitted for the purpose of vocational training.

It should be remembered that different rates of pay apply for overtime, as well as for overtime, as well as at night, on Sundays or holidays.

The introduction of the change on the recording of the number of hours worked is intended to control compliance with the provisions on the so-called working day. From 1 January 2019, the employer must also provide the number of hours of on-call time and the start and end times of work, indicating where the work took place. All this in order to be able to determine whether the right to an 11-hour uninterrupted daily rest period to which an employee is entitled has not been violated.

Speaking of the number of hours worked, the regulations require the working time record to also include the type and length of sick leave and other excused absences from work. Of course, we are also talking about unexcused absences.

In a situation where an employee receives a day off, the employer must indicate the reason for it (e.g. a day off for an average five-day working week, a day off for work on a Sunday or holidays).

The working time records do not include information related to applying for holiday leave.

Process outsourcing is the practice of delegating specific business processes or services to an external company or supplier. Check what you can gain by delegating keeping records of the employee’s working time to other entities.

Keeping records of working time

Working time records can be kept in paper or electronic form. Remember to store it in such a way that it will not be damaged. Working time records should be kept throughout the entire period of employment of the employee, as well as for the next 10 years, counting from the end of the calendar year in which the employment relationship was terminated or expired.

Period of storage of the employee’s working time records

How long press time records can be kept is regulated by Article 94(9b) of the Labour Code.

“The employer is obliged to store employee documentation for a period of 10 years, counting from the end of the calendar year in which the employment relationship was terminated or expired, unless separate regulations provide for a longer period of storage of employee documentation.”

The method of recording working time has changed, and even before 1 January 2019, the period of storing employee documentation was as long as 50 years! The changes took place with the introduction of Art. 7. Act of 10 January 2018. At that time, some acts were amended and the period of storage of employee files was shortened.

Forms of keeping records of working time

To a large extent, how the working time records will be kept depends on the employer. The legislator allows him to choose from two available forms, paper or electronic.

If the employer decides to use a paper version, he will have to protect it against destruction, damage, loss, but also so that it does not fall into the wrong hands. The working time record card with detailed information should be placed in a special room where it will not be threatened by weather conditions, i.e. humidity and temperature.

Electronic records of working time should be kept in accordance with what is specified in Chapter 3 of the Regulation. Chapter 4 also sets out detailed rules of conduct in a situation where the employer is forced to transfer employee documents between electronic systems.

Attendance list and working time records

What is the difference between an attendance list and a timesheet? The attendance list is only a document that confirms the start and end time of work. The law does not impose an obligation to conduct it, and it is the employer himself who decides whether he needs this form of control. It should be remembered that these are two different documents and cannot be used interchangeably.

Working time records are mandatory and contain much more information than the attendance list itself, which tells about the time of starting work, the time of its end, or the length of unexcused absences of the employee.

According to Art. Article 149 of the Labour Code:

“The employer keeps records of employees’ working time for the purpose of correct determination of his remuneration and other work-related benefits.”

An employer who does not keep records of working time may receive a fine of PLN 1,000 to even PLN 30,000. The attendance list can only supplement the working time records.

The attendance list is only to confirm whether the employee has arrived at the workplace. The working time records include other detailed information, such as contractual working hours, overtime, work on Sundays and holidays, sick leaves, and data on whether the employee has taken holiday leave.

What documents should be included in the working time records?

The regulations governing keeping records of working time are contained in the Regulation of the Minister of Family, Labour and Social Policy of 10 December 2018 on employee documentation.

Storing employee documentation is the responsibility of every employer. According to the above-mentioned Act, the employer should store:

documents concerning personal data, collected in connection with applying for a job, as well as referrals for medical examinations and medical certificates regarding periodic and follow-up examinations,
statements and documents regarding personal data,
employment contract,
the scope of the employee’s activities and responsibilities,
documents concerning the employee’s performance of work in special conditions or of a special nature
confirmation that the employee has read the content of the work regulations, health and safety regulations, the scope of information covered by secrecy,
confirmation of informing the employee about the terms of employment, the scope of monitoring and occupational risk.

Of course, there are many more of these documents, but it is impossible to list them all. The regulations introduced by the legislator clearly state what must be included in the working time records and what employee documentation the employer should have access to. For more detailed information, please visit Regulation of the Minister of Family, Labour and Social Policy of 10 December 2018 on employee documentation.

Which employees are not covered by working time records?

Records of the employee’s working time do not need to be kept in the case of employees who manage the workplace on behalf of the employer. Employees employed in the task-based work system are also an exception to the rule. They belong to employees who receive a lump sum for overtime or night work. In their case, the employee’s working time records are not necessary.

In their case, simplified working time records are used. It consists in the lack of obligation to document working hours. However, keeping limited records does not exempt the employer from other requirements, which include:

showing information about days off, indicating the reason for granting them,
demonstrating the type and extent of sick leaves,
demonstrating the type and extent of other excused absences from work and the extent of unexcused absences from the workplace.

Irregularities and their consequences

Failure to keep records of working time is treated as a violation of employee rights, as is violation of working time regulations. Such actions are an offence punishable by a fine of up to 30 thousand. PLN. If there is a suspicion of falsification of the register, the PIP inspector may apply to the court for suspicion of committing a crime. Then the consequences can be much more severe. However, honest employers should not be afraid of inspections. Even if there are minor deficiencies in the records caused by purely technical problems, the inspector will probably only make a note – without criminal consequences.

Keeping employee records (payroll) – using the services of an external company can protect you from irregularities in the documentation and legal consequences.

Summary – working time records

Working time records are the most important element of the documentation of recording working time in a company. Its absence may result in problems in the settlement of working time, as well as the payment of due remuneration. The employer is obliged to keep such records and keep an eye on it, they show the hours worked, the start and end times of work.

New technologies, allowing for more efficient data processing, have become the main ally of business in the implementation of the sustainable development strategy. Digital transformation has also revolutionized the way people manage human resources, and platforms for digitizing and automating HR processes are currently experiencing their period of prosperity. How do new technologies support sustainable human resource management?

Sustainability has long ceased to be just a trend and has become an important and integral part of business operations. This was due to, m.in, progressive climate change, greater awareness of corporate governance principles and the importance of employee rights, but also EU regulations that impose non-financial reporting obligations on companies. We are talking about the Corporate Sustainability Reporting Directive, published on 16 December 2022 in the Official Journal of the EU. The ESG reporting requirement (first for 2024) will apply to public interest entities that have so far had a non-financial reporting obligation under the NFRD, but in the coming years it will apply to other groups of enterprises. It is therefore not surprising that the business community is already reviewing its sustainability strategies and implementing solutions that allow for more effective and measurable activities. The HR industry is an extremely important part of this puzzle, and new technologies allow you to effectively combine business goals with care for people and the planet.

– All paths towards sustainable human resource management lead through technology. Companies should reinvent HR, the modern one, based on data, algorithms, and artificial intelligence – says Andżelika Majewska, Vice President of LeasingTeam Group. – Digital solutions bring measurable environmental benefits, but also significantly improve formalities between the employer and the employee. They allow you to optimize onboarding, HR and payroll processes and increase operational efficiency. This is crucial at a time when human labor is becoming more and more expensive, but also in short supply – adds Andżelika Majewska.

Digitization of HR processes

HRM systems have been improving communication between HR and employees for years. The basis of this type of software is a central database, which provides the company with a comprehensive insight into the personnel situation. It is used by both medium-sized enterprises and international corporations. Most HRMS offer modules that allow you to manage working time, salaries or holidays. Along with the development of technology, more advanced solutions are being implemented, facilitating not only the work of HR departments, but also streamlining formalities on the part of employees and bringing measurable environmental benefits. Unfortunately, as LeasingTeam experts note, in many companies HR processes are still based on paper, and HR departments have been neglected for years in the context of digitization. However, this is starting to change, because in an era of complex environmental challenges and growing environmental awareness, paperless is becoming a key element of ESG strategies.

Sustainable development in Polish companies

Numerous studies are conducted in Poland to look at the practices of companies in the area of sustainable development. The results indicate that entrepreneurs are beginning to translate global ESG (Environment, Social, Governance) ideas into specific operational activities. This proves the growing maturity of the business, which sees the potential for long-term benefits. One of the key motivations is also the change in the expectations of customers, who more and more often prioritize environmental and social values over purely economic factors when choosing products or services.

However, growing awareness does not mean that the process is without challenges. For many companies, it is still a financial and organizational burden. Despite this, companies are increasingly looking for solutions that will allow them to combine economic development with care for society and the environment. One area where there is a particularly high commitment is human resource management.

New technologies in the service of sustainable HR

Companies that want to act responsibly and effectively are beginning to notice the key role of digitization of HR processes. Cloud-based solutions, document workflow automation, as well as analytical tools help not only to reduce paper or energy consumption, but also to improve the functioning of the entire HR department. The implementation of modern digital platforms can bring measurable benefits – both environmental and financial.

Technological support for HR processes translates into greater transparency and transparency in areas related to employee competence management or professional development control. It also enables precise monitoring of ESG-related indicators, which makes it easier to report progress towards achieving sustainable development goals. This allows organizations to better manage their human capital and actively build a culture of commitment and shared responsibility.

ESG practices in Polish companies

If you want to take a look at the detailed ESG practices of Polish companies and learn about specific examples of implementations, it is worth reaching for comprehensive studies. One of them is the LeasingTeam Group report “Do companies in Poland care about sustainable development?”, which shows how companies deal with the implementation of the idea of sustainable development in practice. It contains not only research results, but also recommendations and tips for those organizations that are just starting their path in the ESG area.

What is supplementary maternity leave?

In a situation where a newborn requires hospitalization immediately after birth, parents will be able to take supplementary maternity leave, provided that the appropriate conditions are met, including the week of pregnancy in which the child was born, its birth weight or the length of hospital stay. Depending on the specific criteria, this time can be up to 15 weeks or – in other cases – up to 8 weeks. Importantly, the new leave can be used immediately after the end of the basic maternity leave, and the employer will be obliged to grant the request for it.

Conditions for granting supplementary maternity leave

According to Art. 180 § 2 of the Labour Code, supplementary maternity leave is granted in the amount of one week of additional leave for each week of the child’s stay in hospital, but not longer than up to a certain limit:

A child born before the end of the 28th week of pregnancy or with a birth weight of not more than 1000 g – the right to an additional week of supplementary maternity leave for each week of hospitalization, until the end of the 15th week after the birth.
A child born after 28 weeks of gestation and before 37 weeks of gestation, with a birth weight of more than 1000 g – the right to an additional week of supplementary maternity leave for each week of hospitalization, until the end of the 8th week after the birth.
A baby born after 37 weeks of pregnancy requiring a hospital stay – the right to an additional week of supplementary maternity leave for each week of hospitalization in the period from the 5th day to the end of the 8th week after the birth, provided that the child’s stay in hospital lasts at least 2 consecutive days, and the first of them falls between the 5th and 28th day of the child’s life.

When more than one child is born

In the case of multiple births (two or more children during one birth), the following are taken into account when determining the amount of supplementary leave:

birth weight of the child with the lowest weight,
the longest period of hospitalization among all children.

Rules for granting additional leave and documents necessary for the application

Supplementary maternity leave is granted only once, which in practice means that a parent can take it only in one continuous period. In order to receive this additional time to care for the child, it is necessary to submit the application at least 21 days before the planned end of the basic maternity leave. It is worth bearing in mind that if the employee does not decide to take this leave immediately after the basic maternity leave, he or she will not be able to use it at a later date.

The application for supplementary maternity leave should be accompanied by:

A certificate from the hospital where the child was staying, including: information about the period of the child’s stay in the hospital, the week of pregnancy in which the child was born, the child’s birth weight.
Documents specified in the Regulation of the Minister of Family and Social Policy of 8 May 2023 (Journal of Laws, item 937) on applications for employees’ rights related to parenthood and documents attached to such applications.
Information about the end date of maternity leave.

It is worth noting that supplementary maternity leave can be used not only by biological parents. The right to this benefit is also available to employees who have taken a child for upbringing as a foster family (except for a professional foster family) and to persons who have applied to the court for the adoption of a child. However, it is important that hospitalization takes place after the child has been formally admitted for upbringing.

In addition, the new solution can also be used by people who, on the date of entry into force of the Act, are in the process of taking maternity leave (or leave under the conditions of maternity leave), acquired this right before 19 March 2025 and meet all statutory requirements, including those regarding the hospitalization of a child. In such a situation, it will be possible to take supplementary maternity leave from the date of entry into force of the regulations, provided that it takes place immediately after the end of the basic maternity leave.

Standard maternity leave – a reminder

According to Art. 180 § 1 of the Labour Code, basic maternity leave is granted in the following amount:

20 weeks – for the birth of one child,
31 weeks – at the birth of two children,
33 weeks – when giving birth to three children,
35 weeks – for the birth of four children,
37 weeks – with the birth of five or more children.

Only after the above-mentioned leaves have been used, the parent may apply for supplementary maternity leave if he or she meets the conditions specified in the regulations related to the child’s hospitalization.

Protection against termination and termination

An employee or father-parent raising a child is subject to special protection during the period of maternity leave and its supplementation. This means that from the date of submission of the application for supplementary maternity leave until the end of this leave, the employer may not:

prepare for termination or termination without notice of employment,
terminate or terminate the employment relationship (except for situations justifying the termination of the contract due to the employee’s fault, with the consent of the company’s trade union organization).

Importantly, if an employee submits an application for supplementary maternity leave earlier than 21 days before the end of the basic maternity leave, the protection will take effect 21 days before the planned start of supplementary maternity leave.

Maternity allowance and return to work

For the period of supplementary maternity leave, the employee is entitled to a maternity allowance in the amount of 100% of the assessment basis.

After the end of supplementary maternity leave, the employer is obliged to allow the employee to work in the current position, and if this is not possible – in an equivalent position or another, no less advantageous.

Who else is affected by the changes?

The Act amending the Labour Code introduced a number of adjustment changes to other legal acts, m.in. in:

the Act of 26 January 1982, the Teachers’ Charter (Journal of Law of 2024, item 986);
the Act of 12 December 1997 on additional annual remuneration for employees of budgetary entities (Journal of Laws of 2023, item 1690),
the Act of 13 March 2003 on special rules for terminating employment relationships with employees for reasons not attributable to employees (Journal of Laws of 2024, item 61),
the Act of 9 July 2003 on the Employment of Temporary Workers (Journal of Laws of 2023, item 1110),
the Act of 20 April 2004 on the Promotion of Employment and Labour Market Institutions (Journal of Laws of 2024, items 475, 742, 858, 863, 1089 and 1572),
the Act of 25 June 1999 on cash benefits from social insurance in the event of sickness and maternity (Journal of Laws of 2023, item 2780).

Summary

The new rules on supplementary maternity leave provide parents of premature babies and children hospitalized in the first weeks of life with additional support and legal protection. The condition for exercising these rights is a direct transition to supplementary maternity leave after the end of the basic leave and submitting an application at least 21 days before its planned end.

If you need additional information on work organisation, employee rights or HR and payroll processes, please contact LeasingTeam Group – we will be happy to help you adapt your organisation to the new regulations.

Legal basis:

Act of 6 December 2024 amending the Labour Code and certain other acts (Journal of Laws, item 1871).
The Act enters into force 3 months after the date of publication, i.e. on 19 March 2025.

The minimum wage is an important element affecting the country’s economy, the standard of living of employees and the costs of doing business by employers. In connection with the upcoming year 2025, it is worth taking a look at the projected changes in this area. In this article, we will discuss the planned minimum wage increases, their impact on net wages, the cost of hiring an employee, and what these changes mean for employees and employers.

Minimum wage in 2025

The Regulation of the Council of Ministers of 12 September 2024 on the amount of the minimum wage for work and the amount of the minimum hourly rate in 2025 was published on 13 September in the Journal of Laws. On its basis, from 1 January 2025, a new minimum wage (the so-called “national minimum”) will apply in Poland, set at PLN 4666 gross per month. This is an increase of PLN 366 compared to the rate applicable from July 2024, which was PLN 4300 gross.

Minimum hourly wage in 2025

Along with the increase in the minimum monthly wage, from 1 January 2025, the minimum hourly rate for certain civil law contracts, such as contracts of mandate, will also increase. The new rate will be PLN 30.50 gross per hour (Journal of Laws of 2024, item 1362), which is an increase of PLN 2.40 compared to the rate applicable from July 2024, which was PLN 28.10 gross.

Net minimum wage in 2025 – how much will an employee receive on hand

How much will the net earnings of employees who in 2025 receive a salary of PLN 4666 gross? In the case of full-time work – without taking into account the ECP, for an employee over 26 years of age, assuming that the employee submits PIT-2 and earns income from one employment relationship in the place of residence – the following are subtracted from the remuneration:

pension contribution PLN 455.40,
pension contribution PLN 69.99,
sickness contribution PLN 114.32,
health contribution PLN 362.37,
advance payment for PIT 153 PLN.

After these deductions, the employee will receive PLN 3,510.92 net.

The process of setting the minimum wage

The amount of the minimum wage and the minimum hourly rate is determined by the Council of Ministers by way of a regulation. The proposals are consulted with the Social Dialogue Council, but the final decision rests with the government. In the case of a forecast inflation rate below 5%, the minimum wage is changed once a year, from 1 January. With the expected price increase rate of at least 5%, two dates for raising the minimum wage are set – from 1 January and from 1 July.

We already know that in 2025 the minimum wage increase will take place only once and will be valid throughout the year.

Impact on the labour market and employer’s costs

For workers, an increase in the minimum wage means higher incomes, which can improve their standard of living and increase their purchasing power. This is particularly important in the face of the rising cost of living and inflation.

Employers must prepare for increased employment costs and take these changes into account when planning the budget for 2025. Employment of an employee in the amount of the minimum wage for full A full-time job will cost the employer about PLN 5,621.60 . The total cost of an hour of performance of a civil law contract by the contractor will cost the principal PLN 36.75.

An increase in the minimum wage may therefore affect the margins of enterprises, especially in sectors with a large share of employees receiving the lowest wages. Some employers may decide to reduce employment, which may primarily affect people with low qualifications. On the other hand, high labour costs can be an incentive for entrepreneurs to invest in automation and innovative solutions, which will contribute to an increase in productivity.

LeasingTeam Group is at the disposal of both employees and employers, offering support in the field of personnel consulting, optimization of employment costs and adaptation to changing market conditions. Feel free to contact us to discuss your individual needs and challenges.

Payroll outsourcing is an excellent solution especially for people who have difficulties in controlling company expenses and want to finally control the budget of their business. With the support of experienced and highly qualified specialists of LeasingTeam Group, running a business will become pure pleasure. But these are not the only advantages of HR and payroll services provided by experts! Find out more!

What exactly is payroll outsourcing?

HR and payroll services are part of the outsourcing offer, i.e. the transfer of functions or tasks of the company to other, external companies. The scope covers many important areas of the company that directly affect its functioning. These are HR and payroll services, where you can count on support in the field of:

monthly settlement of employees in accordance with applicable regulations,
calculating liabilities to the Tax Office and Social Insurance Institution,
transfer data from the company’s HR and payroll system to TETA,
controlling employee contracts,
handling certificates and other forms for employees.

As part of payroll outsourcing, you can also use the proprietary HTM system – TalentPoint, which is designed for employees. With its help, the team can, for example, sign contracts of mandate, as well as submit leave requests and check salary.

By constantly monitoring changes in regulations regarding HR, payroll, accounting and tax payment, as well as improving the qualifications of our employees, we can guarantee professional and complete payroll and HR services at the highest level. We will take the burden of responsibility off your shoulders and make running a business as enjoyable as it used to be from now on. With us, you will save time and money and gain a number of additional benefits.

Benefits of outsourcing payroll and HR services

No more wondering if everything is paid on time and if each employee has received their salary in the right amount. Thanks to HR and payroll services provided by external LeasingTeam experts, you will be able to focus on what is most important, i.e. developing your company. However, this is not the only advantage of outsourcing the maintenance of company records to an external company. In addition, payroll outsourcing will allow you to:

protect against the consequences of mistakes made by your own accounting department employees, especially inexperienced people,
reduce the risk of arrears both to the team and to the Social Insurance Institution and the Tax Office,
control the company’s budget, which in turn will significantly facilitate planning expenses, investments and building the so-called “safety cushion”,
Protect employee data even better from theft and illegal use.

In addition, if you use our HR and payroll services, you can count on the support of specialists who can boast many years of experience and will certainly tell you what to do in a difficult situation.

Entrust HR and payroll services to trusted experts

Are you afraid to share data about your employees and your company with someone else? Are you afraid to trust an external company? Being careful in this regard is very reasonable! After all, improperly conducted HR and payroll services can have many serious consequences, not only financial. Delays in paying salaries or delaying the payment of important invoices are situations that can contribute to a decrease in employees’ trust in you and a decrease in the reputation of your company. However, even so, you can’t do everything on your own, even if you’re a specialist in this field.

To ensure that everything is completed on time and all information remains confidential, carefully verify experts who offer comprehensive HR and payroll services. Check the experience and opinions and choose a competent company that has been trusted by many companies throughout Poland for years. This is the best way to avoid the costly consequences of outsourcing HR and payroll services to someone unreliable. Doing so is also a guarantee of the safety of all people who work for you.

When is it worth opting for external HR and payroll services?

Payroll and HR services as part of outsourcing are an offer addressed primarily to small and medium-sized enterprises. Thanks to this solution, there is no need to create additional jobs in the company for people who would deal with HR and payroll services. This allows you to save money and allocate it to the development of the company.

Do you want to use payroll outsourcing? Contact us and we will not only answer your questions, but also tailor the offer to the nature of your business and needs. Flexibility and professionalism are the key values of LeasingTeam. Check us out!

Competent, meticulous and always ready to help – this is how you can describe Talentina, the perfect assistant for your HR department. Thanks to it, you will gain instant access to expert knowledge in the field of HR and payroll, in accordance with the latest labor law regulations. Instead of wasting time researching on your own, all you have to do is ask her a question. Sounds interesting?

Powered by OpenAI, trained for HR

Talentina operates on the basis of advanced OpenAI artificial intelligence algorithms, which play an increasingly important role in the digital transformation of HR departments. As a result, it can:

answer questions about labor law.
explain complex laws and regulations.
analyze information and provide accurate conclusions.
compare concepts and propose the best solutions.

– AI can analyze huge amounts of data, for example, to identify candidates who not only have the right qualifications, but also fit into the company’s organizational culture. However, artificial intelligence can also strengthen the competences of HR employees. Talentina has access to current regulations and answers questions in the field of HR and payroll – says Marek Deręgowski, Managing Director at TalentPoint.

Work smarter, not harder

Treat Talentina as a reliable colleague and reliable support in your daily work. Here’s what it can do for you:

answer employees’ questions, for example about the rules for granting parental leave.
summarize the amendments to the Labour Code.
help with calculations. You will easily learn how to correctly calculate remuneration for overtime or night work.
provide immediate answers, without the need to search through documentation or consult experts.

No matter what you ask her – Talentina is always ready to support. He speaks the language of advisors, and at the same time is inhumanly effective.

Improved employee experience

Talentina is ready to solve problems and provide help at any time. Thanks to it, you can faster provide employees with accurate and personalized answers to the questions they direct to the HR department. You paste the question, copy the answer and you’re done. For you, it saves time and resources, and for other people employed in the company, it means a better employee experience.

Learn more about TalentPoint and Talentin

TalentPoint is a reliable tool for companies that want to optimize their HR and payroll processes. It will give you more time to grow your business, with the confidence that all aspects of HR are managed professionally and in accordance with regulations.

Visit our website and learn more about TalentPoint and Talentin. Contact us and our experts will show you how we can help your company achieve a new level of efficiency and innovation in HR and payroll management.

HR and payroll management in a company is a complicated process, carried out by an independent department in the company’s structure. In many cases, however, it is more advantageous to use outsourcing, i.e. outsourcing the management of HR and payroll processes to another entity. In this article, you will learn about the advantages of HR and payroll services provided by an external company. We will also point out its disadvantages so that everyone can decide for themselves what will work best in their case

What exactly is HR and payroll service?

HR and payroll outsourcing has recently been breaking through to the mainstream and is becoming an inseparable element of many modern enterprises in Poland. Running a medium or large company with a larger number of employees involves the need to complete many formalities and manage extensive documentation. After all, every employee must have a contract on the basis of which the salary will be paid. Someone has to calculate holidays and keep records of working hours.

What is more, the HR and payroll department also deals with calculating the amount of social security contributions and income tax advances for each employee. In the case of smaller enterprises, it is not enough to hire one person for this type of duties. It is not uncommon to have to build an entire department that will manage formalities related to employees on an ongoing basis, especially when employees are offered, for example, temporary work, employment on a B2B basis or based on a managerial contract.

HR and payroll outsourcing allows companies to focus on the most important areas of their business by handing over processes to partners. In such a case, the staff service and salary calculation are handled by external specialists, and not by the internal department, which can therefore focus on other activities.

This type of solution is very popular in very large enterprises, which are characterized by complex and complicated structures that are subject to various regulations. This does not mean that smaller companies cannot use outsourcing.

Business process outsourcing – how much does it cost?

Each valuation of HR and payroll services is carried out individually. The final cost is influenced by the scope of issues, needs and expectations of the client, but also by the specifics of the company that decides on such cooperation.

When looking for a new business partner, pay attention to the range of services they offer. Cost is of course important, but even more important are the activities that are part of the entire process.

Sometimes a low price results in a narrow range of services, and additional important tasks will most likely be paid extra in such a situation. A low price can also mean low quality of service or no guarantee that the activities will be effective. In our opinion, this is not a game worth the candle, and such cooperation can be really very risky.

So how do you choose the right company? First of all, you need to estimate what costs your company currently incurs for HR and payroll services. We know that the employer does not always know exactly what the real expenses related to this are, and this applies to many departments. However, this information is essential. The costs of running a department include not only salaries for employees, but also workplace equipment, access to appropriate technologies and programs to help conduct HR and payroll activities.

What services does HR and payroll outsourcing include?

People dealing with such responsible tasks should have appropriate knowledge and education, especially in the field of accounting and labor law. After all, they are often responsible for providing information about employment conditions and answering questions from the hired people. Any mistake or oversight can have serious legal and financial consequences. To ensure that their activities do not cause problems for the company, it is extremely important that employees of this department regularly refresh their knowledge, e.g. during courses and training provided and paid for by the company.

An outsourcing company deals with the same issues, but it serves more than one company and has many HR and payroll specialists with appropriate education and regular updates of their knowledge. It is not uncommon for outsourcing companies to be additionally audited by external specialists to be able to provide the best quality services.

HR and payroll outsourcing includes all tasks resulting from HR and payroll services. Professional companies with extensive experience offer comprehensive services for tasks such as:

HR outsourcing: keeping employee files, changing personal files, preparing employment contracts, but also civil law contracts, keeping records of working time and absences, controlling important deadlines, such as parental leave, medical check-ups and health and safety training.
Payroll outsourcing: calculation of salaries and their timely sending, preparation of payroll, preparation and sending of settlement declarations, preparation of PIT settlement declarations, contact with the Social Insurance Institution and the Tax Office.

Often, HR and payroll outsourcing also means providing services such as ECP services, assistance in organizing health and safety training, or conducting recruitment processes for new employees from A to Z.

Advantages of outsourcing HR and payroll services

Outsourcing is a solution that has many advantages, which is why companies from almost all industries decide on it. It eliminates the need to have an HR and payroll department in the company’s structure, thanks to which the employer’s costs are reduced. There is no need to recruit HR and payroll specialists, which also naturally reduces costs. There are also no expenses related to the payment of courses or training for employees of the financial department, as well as specialized computer programs.

By entrusting the outsourcing company with the custody of documentation, the owner can also recover the time that he has so far put into controlling documentation and archiving. Responsibility for formal matters rests with the external entity. Companies of this type regularly present reports on their activities and prepare reports, thanks to which it is easier for business managers to control the financial situation.

What is more, HR and payroll outsourcing is an opportunity to use the services of the best consultants and specialists, without having to pay their time “exclusively”. In addition, your company is guaranteed “smooth operation”, because a specialized external company employs many employees, even if several of them take a vacation, it will not interfere in any way with the operation of your company in the HR and payroll area.

Reducing operating costs is not everything. HR outsourcing can result in greater processing capacity of current employees, who can focus on their normal tasks. Outsourcing companies specializing in a given field have extensive experience, which allows us to believe that they will do their job in a professional manner.

The use of external resources and the knowledge of specialists will increase the awareness of the company’s employees. An external company and its wide range of services will enable the development of standards that are normally developed over many years.

Greater efficiency is another advantage of outsourcing. We have already mentioned that outsourcing specialized tasks will allow your employees to focus on their most important tasks. The introduction of outsourcing also means optimization of the functioning of the entire company. The use of specialist knowledge will certainly contribute to the development of the entire company and its efficiency.

Other advantages of HR and payroll outsourcing:

Comprehensive support in HR and payroll management – specialists provide full support for HR and payroll processes, ensuring their efficient functioning.
Constant availability of experts – an external team ensures continuity of service, which eliminates the risk of interruptions in the work of the HR and payroll department.
Lower costs – outsourcing is usually a cheaper solution than maintaining an internal HR and payroll department.
Access to modern tools – outsourcing companies use advanced HR and payroll software, which increases efficiency.
Sharing of risk and responsibility – the external partner takes responsibility for the proper handling of HR and payroll matters.
Guarantee of security and confidentiality – data is protected in accordance with regulations, and the outsourcing company is financially and legally responsible for its security.
Up-to-date regulations – specialists make sure to stay up to date with any changes in labor and tax law, which ensures compliance with regulations.

Disadvantages of outsourcing HR and payroll services

Despite numerous advantages, outsourcing is not without its drawbacks. The biggest one is that the company becomes partially dependent on an external entity. In the case of terminating cooperation, it will be more difficult to introduce people to the company’s affairs than if you had your own department. The disadvantage of outsourcing is also that with the termination of cooperation, access to specialized staff is lost. In addition, some companies dealing with HR and payroll services may also inflate rates for the services provided, which makes it more profitable to create your own department in the company.

However, all these disadvantages are related to the potential termination of cooperation or finding a dishonest company, and not to the outsourcing itself. However, when choosing a trusted partner to whom you want to entrust an important task, which is HR and payroll services, the business owner has nothing to fear.

Business process outsourcing is also a desire to reduce costs, which can be a trap for the company. The desire to cut costs to the limit can affect the quality of the services received. When choosing a partner to work with, be guided not only by the price, but also by the knowledge and experience they can offer. A wrong approach to process outsourcing can quickly overshadow the benefits of such a solution.

Keep in mind that delegating some tasks to external companies may result in less control over the processes that will take place without your participation. There is no denying that this is a kind of threat resulting from outsourcing services. Therefore, the choice of an outsourcing company must be well thought out.

You also have to take into account that the beginning of cooperation can be a bit chaotic, and the lack of knowledge in some topics on the part of external companies is nothing exceptional. Some processes in your company may be unclear, and various misunderstandings may arise in connection with them. These, however, will be clarified during the talks.

Summary

When deciding to delegate some processes, remember to do a good research on the market. Knowing the pros and cons of outsourcing, you know that there are many more benefits of such a solution. Before making a decision, analyze each pros and cons again so that the choice is fully justified.

On 12 June 2024, the “Active Parent” Act was promulgated, which introduces three new benefits for parents of young children, aimed at supporting professional activity and raising children.

Applications for the new benefits can be submitted to ZUS from 1 October 2024.

The Act introduces the following benefits:

1. “Active parents at work” – addressed to working parents with children aged 12 to 35 months. The benefit is PLN 1500 per month for 24 months, and PLN 1900 per month for children with a disability certificate.

2. “Actively in a crèche” – replaces the current subsidy for the child’s stay in a crèche, kids club or with a day-care provider. The benefit is available in the amount of up to PLN 1500 per month per child, and for disabled children up to PLN 1900, but not more than the amount of the fee paid by the parents. An upper limit of nursery fees of PLN 2200 per month has also been introduced, the exceeding of which excludes a given institution from the programme.

3. “Active at home” – replaces the family care capital, granted for each child aged 12 to 35 months in the amount of PLN 500 per month for 24 months. This is support for inactive parents or those whose children do not attend a childcare institution.

Parents can choose one of three benefits for the same child for a given month and change the form of support depending on their needs. The Act also amends the 2011 Act on Care for Children up to 3 years of age, increasing the availability and quality of services in these institutions.

The program will be implemented by the Social Insurance Institution from October 1, 2024.

Source: https://www.gov.pl/web/rodzina/aktywny-rodzic

Your PIT-11 for 2023 is now available. Remember! Downloading PIT is necessary to prepare a settlement with the Tax Office.