Overview

Recently classified as the most difficult payroll in the world, Italian payroll has a fast-changing multiple layer legislation. It requires coordination between a huge labour law (above 20 types of individual contract), an impressive number of National Collective Bargaining agreements (800 and increasing, with 1845 valid agreements as of 2017), local b.a. (above 700), thousands of company agreements. On top of this, a complex income taxation (1 National, 20 Regional and above 8000 City-hall taxation rules) a complex public pension scheme (15 big groups – 89 subgroups of contributions), mandatory public accident insurance (4 big groups of contributions – 40 subgroups), together with protected absenteeism (maternity leaves, sickness, many others), create one of the most complicated payroll algorithm in the world. Mainly for this, Italian law requires that the company only communicate with public bodies directly or through a certified labour consultant, requiring to coordinate your usual group provider with a local, certified one. Compliance risk is very high and unexpected costs could arise, even direct impact to the business (missing “DURC” certification). If your company needs to cope with Italian payroll directly or through a branch, no panic! Join our course, we’ll share with your delegates the keys to solve Italian payroll complexity and to keep everything under control.

Who is this course for?

This course is aimed at those Payroll & HR Professionals who are processing or managing Vendors who process Payrolls in Italy and need to have an understanding of the legislative and legal requirements involved.

What will you achieve?

Having attended this course delegates will have confidence that they understand the fundamentals of payroll processing in Italy, are clear about the employer payroll obligations, know what they need to do on both a periodic and annual basis, can answer employee queries and check payslips. If payrolls are outsourced, delegates will increase their comprehension of end to end payroll cycle from monthly processing to year end accruals and annual declarations. If your company wishes to start a payroll globalization or a payroll process transition, this course is the right start to have your teams prepared to the incoming project.

What will be covered?

Employment Law:

Tax:

• Simulation of how Italian PAYE system works for National and local taxes
• IRPEF calculation for residents (standard by bracket – Flat, 10% tax- Productivity bonuses and their conversion in welfare services)
• IRPEF for non residents
• Local taxes “Addizionali”
• Travel & Expenses taxation

Social Insurance:

• Calculate Public pension contribution (Inps)
• Calculate Private Pension funds
• Calculate Public Work injury insurance (Inail)
• Calculate Private Insurances byk
• Calculate Mandatory reports (F24 and Uniemens)
• Calculate the annual balance for Social Securities
• Calculate annual reports (CU-730-770) for social securities

Payroll Administration:

• Time schedule simulation
• Overtime calculation
• Payroll obligations: Key factors review
• Italian payroll cycle scheme: Gross Net Reconciliation and payments, Mandatory reports (Monthly)
• Annual tax return
• Annual reports
• Calculate Monthly payroll with excel and online Payroll engine
• Calculate Gross salary from CCNL and individual contract
• Calculate Supplementary components
• Calculate Benefits in kind
• Calculate Monthly payroll with excel and online Payroll engine

Leave:

• Calculate Vacation
• Calculate Protected absences (Parental Leave, sickness, accident)
• Calculate Public allowances and average daily wage (Inps-Inail)

Summary

The fast-changing, multi-layered legislation underpinning Italian payroll has seen it classified as the most difficult in the world. But fear not, our course gives attendees the keys to understand Italy’s payroll in all of its complexities and confidently master the rules of a country where compliance risk is high and unexpected costs a factor.