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Payroll in Italy

Payroll in Italy

Payroll in Italy is an important part of the accounting offered for companies with economic activities in this country. If you want to know more about Italian payroll taxes and the services that can be offered by our specialists, we recommend that you contact us. Our accountants in Italy are at your disposal if you need such services for the owned company.

What does payroll in Italy involve?

With the help of payroll services in Italy, specialists can calculate and distribute salaries to the accounts of a company’s employees. This is done with dedicated software and experts in the field. Below is some information about payroll in Italy:

  • The process begins with the calculation of wages and the payment of taxes by the employee and the employer respectively.
  • A full-time contract has 40 hours per week, and these are calculated at the time when the documents are drawn up.
  • Thus, with the help of dedicated platforms, payslips are created for the company’s employees.
  • All documents go to the company management for approval.
  • Next comes the delivery of salaries to the employees’ bank accounts, as well as handing out payslips with complete information about them.

We mention that, in order to benefit from payroll services in Italy, you must have your company registered with the Labor Office of the city where it is located. This institution has a complete database with the employees of companies in Italy and this is also where changes are made regarding employment and leavers.

If you want to open a company in Italy and benefit from payroll in Italy, we recommend the services of our company. You will be able to have a good start on the market, with a team of specialists to deal with company incorporation in Italy and related formalities.

Social Security contributions – Italian payroll taxes

Both employees and employers must pay a share of social contributions. Here are some important information in this regard:

• Around 40% represents the social security contributions amount calculated on the salary of an employee.
• From this percentage of 40%, the employer pays between 27% and 31% of social contributions.
• 10% of the social contributions belong to the employee of the respective company.
• From the 10%, the vast majority of taxes go to the National Pension Fund, unemployment fund, maternity leave, and sick leave.
• Social contributions are collected by the Italian National Social Security Institute.

We advise you to discuss more about Italian payroll taxes with one of our accountants in Italy. They are specialized in different areas of accounting and can guide you.

Defining payroll in Italy

It is more than we recommend to benefit from payroll services in Italy, offered by a team of specialists with experience in this vast field. To better understand what payroll in Italy entails, you can also discover the following aspects:

  • Integrating employees in the firm by managing the paperwork,
  • Calculating gross salary which includes taxes and deductions,
  • Calculating the working hours according to reports made in the firm,
  • Determining social contributions at the time the salaries are calculated.
  • Keeping accurate records in the payroll workflow.

What is good to specify is the fact that, in Italy, the 13th salary is also paid, which represents a great benefit, compared to other European countries.

So, if you want to set up a business in Italy and you are also interested in payroll in Italy, you can contact our specialists in the field.