The Italian Payroll and tax system is different from those in most European countries; therefore newcomers to the Italian market can find local payroll requirements complex and confusing. We are an Italian payroll provider that offers payroll & HR admnistration ervices both to newcomers and established companies.
We will process your employees’ monthly payroll, calculate taxes and contributions (i.e F-24 form). We can also pay employees and authorities on your behalf.
Market entry into Italy
Often foreign companies, expanding to Italy, initially do not plan to carry out any commercial activity. In the initial stages of market entry companies are just seeking the possibility of hiring sales people or commercial representatives. For such employment only purposes, companies are not required to set up a permanent establishment in Italy and provide the full set of accounting records. However, foreign companies must still comply with Italian laws in registering the contributory position of the employees who perform their activity in Italy, must pay social security and income taxes in Italy.
To receive the Italian tax code, foreign companies must apply to the Italian Revenue Agency (Agenzia delle Entrate). After receiving the tax code the company must register with:
- the National Institute for Social Security (INPS) in respect of pensions and other economic measures, such as for unemployment support and maternity benefits; and
- the National Institute on Statutory Workers’ Insurance – Istituto Nazionale per l’Assicurazione contro gli Infortuni sul Lavoro (INAIL) – for the delivery of financial and medical measures in the event of workplace injury or occupational illness.
For these purposes, foreign companies must appoint a Social Security representative in Italy (usually a payroll provider or an accountant) in order to complete the necessary registrations and comply with Italian labor law requirements.
We can help you with all the initial registrations. We can prepare Employment Contracts for your employees according to Italian law and specific Collective Agreement (CCNL).
All employment wages, tax and social security contributions are reported in a final yearly document called the Certificazione unica dei redditi di lavoro dipendente (CUD). By the middle of March of each year, employers must provide all employees with two originals of the CUD for the previous repoting year. Every year a new model of the CUD is released by the Ministry of Finance, due to the introduction of new tax provisions.
If you plan to start commercial activity in Italy, we can also help you with permanent establishment registrations (i.e. SRL) and perform accounting and statutory compliance function for you.
Request a quote for Payroll in Italy at email@example.com