The moment a sole proprietorship hires its first person changes daily operations more than most tax reforms do. The business owner is no longer responsible only for themselves — they become an employer and a contribution payer for someone else, with a full set of obligations towards the Social Insurance Institution (ZUS), the tax office and the National Labour Inspectorate (PIP). Below we set out what has to be done before the first day of work and what a job actually costs in 2026.
A sole proprietorship may hire — without changing its legal form
The term „jednoosobowa działalność gospodarcza” (sole proprietorship) refers to the number of owners, not the number of people working in the business. An entrepreneur registered in CEIDG may employ staff under employment contracts, conclude mandate and specific-task contracts, and work with collaborating family members. There is no need to convert the business into a company or amend the register entry — it is enough to meet the employer's obligations.
It is worth remembering, however, that hiring under an employment contract rules out suspending the business — only an entrepreneur who does not employ anyone under an employment relationship may suspend it.
Before work begins — contract, medical check-up and health and safety
The employment contract must be concluded in writing no later than before the employee is allowed to start work. It should specify the parties, the type of contract and of work, the place of work, the remuneration with its components, the working time and the start date. Within seven days of the employee being allowed to work, the employer must additionally provide written information on the terms of employment — among others working time standards, holiday entitlement and the notice period.
Before starting work, the employee must hold a valid medical certificate confirming no contraindications for the given position, issued on the basis of a referral from the employer, and must have completed initial health and safety training (general and job-specific instruction). Both take place during working hours and at the employer's expense. Allowing someone to work without a medical check-up or training is a frequently identified breach during labour inspections.
Remuneration for a full-time position may not be lower than the minimum wage, which in 2026 amounts to PLN 4,806 gross per month. For part-time work the amount is converted proportionally. People working under mandate and service contracts are covered by the minimum hourly rate — PLN 31.40 gross per hour.
Registration with ZUS — seven days and not a day longer
The good news: as the owner of a sole proprietorship you are already registered with ZUS as a contribution payer — the ZUS ZFA registration was created automatically on the basis of your CEIDG entry. There is therefore no need to register again; it is enough to report the person you have hired.
An employee is reported on form ZUS ZUA within seven days of the date work begins — the deadline runs from the following day and, if it ends on a non-working day, moves to the next business day. A contractor is reported on ZUS ZUA or, where they are subject only to health insurance, on ZUS ZZA; a pupil or student under 26 working under a mandate contract is not subject to compulsory social insurance. Family members of the employee are reported on form ZUS ZCNA — at no additional cost.
From the first month of employment, a monthly settlement declaration with individual reports is added, along with payment of contributions for yourself and for the employee in a single transfer, by the 20th day of the following month. Exceeding the seven-day registration deadline is a breach of the contribution payer's obligations and may result in a fine.
What a job really costs in 2026
Gross pay is not the total cost of employment. On top of the gross amount, the employer pays contributions financed from its own funds: old-age pension 9.76%, disability pension 6.50%, accident insurance 1.67% (this rate applies to payers reporting no more than nine people for accident insurance), the Labour Fund and Solidarity Fund 2.45%, and the Guaranteed Employee Benefits Fund 0.10%. Together this amounts to 20.48% of gross pay.
In practice this means that a position at the minimum wage of PLN 4,806 gross costs the business around PLN 5,790 per month — the employer's contributions come to just under PLN 985. From the gross amount itself, contributions financed by the employee are also deducted (old-age pension 9.76%, disability pension 1.50%, sickness 2.45%), together with the 9% health contribution and the income tax advance, which is why the take-home amount is noticeably lower.
Salaries and employer-financed contributions are tax-deductible costs, so under the tax scale and flat tax they reduce the taxable base. Under the lump-sum tax on recorded revenue no costs are deducted — this effect is worth calculating before choosing a form of taxation.
Income tax advances and annual filings
The employer acts as a tax remitter: every month it calculates, withholds and pays the PIT advance on the employee's remuneration, by the 20th day of the month following the month of payment. If the employee submits a PIT-2 declaration, the advance is reduced by 1/12 of the tax-reducing amount, that is by PLN 300 per month. The employee may also submit requests concerning, among others, joint taxation with a spouse or increased deductible costs.
After the year ends, the employer submits the PIT-4R declaration and PIT-11 information forms to the tax office — electronically only, by 31 January. The employee should receive their PIT-11 by the end of February. Where a deadline falls on a Saturday or a non-working day, it moves to the next business day.
PPK, records and the most common oversights
Employee Capital Plans (PPK) apply in principle to every employer, but a micro-entrepreneur is exempt from applying the act if all employed persons submit a declaration resigning from contributions. This exemption is not indefinite, however — it applies until the day the first employed person decides to save in the PPK. A PPK management agreement and an operating agreement must then be concluded. The employee's decision must be independent: encouraging resignation is prohibited.
Ongoing obligations also include keeping personnel files and other employment records — in paper or electronic form — and working time records. Records of people employed from 2019 onwards must be kept for 10 years from the end of the calendar year in which the employment relationship ended. A micro-business need not draw up work or remuneration regulations (the obligation applies from at least 50 employees), but written rules on working time, leave or remote work bring order from day one.