Italian Payroll Services

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Italian Payroll

At Bradford Jacobs, our Employer of Records (EOR) platforms provide reliable solutions for companies wishing to establish their presence in the Italian economy. From the first steps of setting up operations to ensuring compliance with the local payroll laws and regulations, we offer dedicated Italy Payroll solutions that can be personalized to your requirements.

We aim to make business expansion easy. At Bradford Jacobs, we navigate the administration of the Italy payroll system for you, and we also make the returns and associated payments for income tax and social security contributions directly from our payroll system to the local tax authorities.

What Italian Payroll Options are available for Companies?

Businesses in Italy have access to a variety of payroll options, depending on their needs:

  • Remote payroll – In this option, businesses choose to operate under a single payroll system for all employees, by adding employees in Italy to your parent company’s payroll. However, employees in Italy operate under different regulations, and this can cause confusion and compliance risks.
  • Internal payroll – Payroll is operated out of your subsidiary, especially if you are committed to growing your company’s presence in Italy. However, this requires hiring a dedicated HR staff that understands the local employment and compliance laws.
  • Italy payroll processing company – If you wish to outsource your payroll, working with an Italian payroll processing company will help in your payroll process – but this does not help with the issue of compliance.
  • Italy payroll outsourcing – An option that solves both payroll and compliance needs – working with a company like Bradford Jacobs. We can handle both your payroll and compliance for all your employees in Italy. We take the stress of administration off your shoulders so you can focus on what you do best.

Italian Payroll Services

In Italy, payroll regulations change frequently, and corporation may risk penalties or sanctions if they do not comply. Our payroll service involves staying up to date with these shifting demands, as well as an understanding of Italy’s employment laws, taxation regulations such as individual taxes, corporate taxes, social and labor insurance, and meeting all their associated deadlines. Our role includes:

  • Registering with the Italian Tax Agency (Agenzia delle Entrate)
  • Registering with the National Social Security Institute (Istituto Nazionale Previdenza Sociale)
  • Registering for Insurance Against Accidents at Work (Istituto Nazionale per l’Assicurazione contro gli Infortuni sul Lavoro)
  • Registering with The Employment Agency (Provincia)
  • Creating employment contracts and ensuring their compliance to local employment laws
  • Calculating employees’ monthly salary and sending them their pay slips
  • Researching for any available tax incentives
  • Corresponding with the involved parties
  • Submitting employees’ or employer’s wage tax returns and national insurance forms
  • Creating and submitting your company’s annual accounts, administration, and year-end statements
  • Creating payment schedules for wage tax, national insurances, and net wages
  • Ensuring proficient personal income tax returns for you and your employees

What is required to set up Italian Payroll?

The requirements for setting up payroll in Italy will depend on how you establish your presence in the country. If you would like to set up as a subsidiary, you will need to have your subsidiary established first – but this can take some time, depending on where you incorporate as well as the entity type you choose.

To start processing payroll in Italy, you will also need:

  1. A tax code
  2. An employment agency access code
  3. A social security agency code
  4. A Labor Insurance code
  5. Registration for VAT
  6. A local bank account

Registration must be done after incorporation, and before you start onboarding employees – this takes at least four weeks to get it all done.

It is mandatory for subsidiary companies to have an in-country bank account for tax and social security contributions. Employee net salaries, however, can be paid from and out-of-country bank account.

Companies with local bank accounts can benefit from reimbursements from the government or tax authorities.