Hiring Developers in Poland: B2B Contract

What is a B2B contract?

A B2B (Business-to-Business) contract is an alternative to an employment contract (CoE). It is a contract between two companies that is regulated by the Civil Code. A Software Developer starts his own company (i.e. becomes self-employed) to provide services to another technology company. Instead of a monthly salary, they issue an invoice that the customer (recipient of the service) is required to pay.

What should an IT specialist who wants to be hired on B2B keep in mind?

  • Taxes and ZUS contributions must be paid by a given IT specialist employed on B2B. Due to changes in regulations resulting from the Polish Deal, it is worth using the support of accountants or being up to date with the introduced changes. From 1st of July, new modifications will be introduced with regard to the Polish Deal. They will concern, among others, a new tax scale, changes in the health insurance contribution and deadlines for submitting annual PIT declaration.
  • You should choose the appropriate form of taxation, e.g. flat tax (19%) or lump sum (its amount depends on the type of business, e.g. 17% or 32%). Online calculators can help you check your monthly income. If we have information about our ZUS rate, taxation form and other costs of running a business, we will be able to quickly calculate the income.
  • Working time is agreed with the recipient of the service.
  • Sickness allowance is paid by ZUS.
  • In the matter of paid leave, the parties may make a mutual agreement. However, paid leave in B2B without additional arrangements with the recipient does not exist (it is guaranteed only in the case of an employment contract).
  • The notice period may be freely determined by the programmer and the recipient of the service in the contract.
  • If the Software Developer was previously employed under an employment contract and wants to switch to B2B with the same employer, he or she will not be able to get tax relief for start or “a small ZUS”. Both benefits will only be available when you change employer to a new one.

B2B contract. Taxes in 2022

The Polish Deal brings many changes in the field of taxes. This includes, for example, raising the tax threshold, high tax relief, changes in the calculation of health insurance contributions for sole proprietorships and other new solutions in the field of labor law. The key changes for B2B contracts are presented in the table below.

What should an employer keep in mind when hiring an IT specialist on a B2B contract in Poland?

It is worth adding that the B2B contract is more beneficial for the employer and requires less effort in the preparation of documentation. Making payments is much less complicated — all you need is an invoice and an appropriate bank transfer for the specified amount.

B2B contracts mean lower costs for the employer

The table below can help you understand better the difference in earnings for B2B developers compared to an employment contract. We present the current data for April 2022.

The higher the level of seniority, the more B2B is preferred by Polish programmers

External Labor (B2B Service)

We can help in the case when your company can only employ IT Specialists on the basis of an employment contract, but some employees prefer cooperation based on a B2B contract. Thanks to External Labor (B2B Service) an employee signs a contract with us and issues an invoice to us every month for the services provided to your company, while you settle accounts with us.

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Marketing Specialist at Next Technology Professionals - IT Recruitment | IT Outsourcing

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Aga Babicz

Aga Babicz

Marketing Specialist at Next Technology Professionals - IT Recruitment | IT Outsourcing