Payroll engine

The payroll engine calculates pay from gross to net according to Polish rules for 2026. You enter the gross amount and the employee's parameters, and the system computes contributions, tax and the take-home amount.

What the engine calculates

The engine works from the gross amount to net, applying in turn social contributions, the health contribution, tax-deductible costs and the tax advance.

ZUS contributions financed by the insured person: pension, disability, sickness, calculated on the contribution base.
Health contribution of 9% on the base reduced by social contributions.
Tax-deductible costs, the standard 20% or 50% for author's remuneration (transfer of rights).
Tax-reducing amount from PIT-2, PLN 300 per month (the annual tax-free allowance spread over 12 months).
Relief for young people, a PIT exemption on the income of a person up to the age of 26.

Employee parameters

The result depends on the data entered for the employee: type of contract, whether a PIT-2 has been filed, age (relief for young people), type of tax-deductible costs (20% or 50% author's). You change them in the employee record, and the engine recalculates the payroll.

In progress

The following items are not yet supported in the engine and are planned: - PPK (employee contribution 2%, employer 1.5%), - garnishment and maintenance deductions, - relief on return, relief for 4+ families, relief for working seniors, - enforcement of limits: author's remuneration PLN 120,000/year, relief for young people up to PLN 85,528/year, - cumulative settlement (YTD), currently the calculation is monthly, without tracking annual thresholds. Until these items are implemented, verify payrolls for people close to the limits manually. The second PIT threshold (32% above PLN 120,000) is calculated from the payrolls in the system since the start of the year, per payer, for employment contracts. If only part of a person's pay is settled here, set the month of switching to 32% in the employee record (section Tax: PIT threshold). For a contract of mandate this setting records the employee's request under art. 41a.

How pay is split into a contribution-charged part and an exempt part is described in the SoCap model.

Related: SoCap model · Bills and invoices