Overview of Payroll in Italy - Basic
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.
With over 26 years of Payroll and Human Resources management experience, Mario currently serves as a consultant in the area of payroll training and hr compliance services for the private sector. A qualified Labour consultant admitted by the Italian Ministry of Labour to the National Professional Order since 2000, Mario began his career in 1991 in the consulting sector, where he spent 10 years, then focused his efforts on multinational companies’ hr compliance, payroll services and Hr information systems implementation. He’s specialised in HR Processes design and improvement.
- Country overview: doing business in Italy
- Employers’ obligations
- Employment law (Collective labour agreements – Individual contracts types and their characteristics)
- Irreducibility – layoffs and restructuring
- Social shock absorbers (including ordinary redundancy CIGO and extra ordinary redundancy CIGS)
- Recruitment incentives
- Income tax – IRPEF
- Business expenses
- benefits in kind and fringe benefits
- Social security -INPS
- Payroll obligations
- Key factors impacting Italian payroll: Entity-Industry-Collective Agreements-Individual contracts
- Italian payroll cycle
- from monthly processing to annual declarations monthly processing (payslip-total recon-F24-Uniemens.xml-Lul) to year end accruals (TFR-13th-14th instalments-unused vacation) and annual declarations (Disabled people-Inail-CU-730-770)
- Work relationship (including registration of starters
- leavers and changes
- UNI LAV
- UNI SOMM and UNI URG)
- Remuneration principles and structures (minimal salary and pay scales-direct
- deferred remuneration-demotion impacts)
- TFR: description
- contribution and taxation of this unique severance pay scheme
- Fringe benefits (benefits in kind-welfare plans – their fiscal treatment and possible cost reduction)
- Family allowance – ANF
- Seniority pay
- Statutory reporting requirements including DURC and annual reporting
- Payslip: Understanding of the Italian payslip
- Glossary of terms and abbreviations used in payroll
- How to process leave payments (including sickness and INPS
- annual holidays
- public holidays
- child sickness
- calculation of the average daily wage)
What will be covered?
SummaryThe 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.