Guide: What information do I need to prepare to start Payroll with Remote in Italy?

To successfully start payroll services with Remote in Italy, you’ll need to provide specific documents and details during the "Customer Information Collection" stage. This guide will help you understand what information you need to gather to ensure a smooth payroll setup for your team members in Italy.

Why is this information important?

We need the following information to comply with Italian labor and tax laws and ensure that payroll is set up correctly for your company and employees. By preparing these details ahead of time, you can avoid delays and ensure payroll runs smoothly from the start.

1. Company Information

Company Information

• Company name
• Business address line
• VAT number (Imposta sul valore aggiunto (IVA))
  • You can visit the VIES portal here and enter the business name or the VAT number to verify its validity.
  • This number is assigned to businesses engaged in transactions subject to Value Added Tax (VAT). Companies selling VAT-taxable goods or services must have this number, which identifies them for VAT purposes in both domestic and international transactions.

Company Registration

• Company Registration number
  • You can verify a company's registration number through the Italian Chamber of Commerce or online via third-party services that provide access to the Registro delle Imprese database.
  • The registration number is typically an 11-digit code. The first part of the number corresponds to the province where the company is registered (2 digits), and the remaining digits are sequential and specific to the company.
• Company Tax ID number (Codice Fiscale)
  • This number functions as a tax identification number and is essential for businesses to conduct financial and legal activities. The Codice Fiscale is used for tax returns, invoicing, payroll, and other financial operations.
  • When you register the business with the Italian Chamber of Commerce (Camera di Commercio), it automatically receives a Codice Fiscale and a VAT number.
  • You can verify a company's Codice Fiscale through the VIES (VAT Information Exchange System), a European system for checking the validity of VAT numbers across EU member states.
• Company INPS number (National Social Security Institute)
  • It refers to the unique identification number assigned to companies by the INPS (Istituto Nazionale della Previdenza Sociale), the National Social Security Institute. Without an INPS number, companies cannot legally employ workers in Italy or comply with the mandatory social security contribution system.
  • Typically You can find it in the company’s payroll and accounting documents. It may also be accessible through the company’s online account on the INPS portal. INPS communications, invoices, and official documents related to social security contributions will display the company’s INPS number.
• INAIL number (National Insurance Institute for Employment Injuries)
  • It is assigned to companies when they register with INAIL, which is mandatory for employers in Italy. It is used to manage and track the company’s compliance with workplace insurance obligations. Example: 12345678
  • INAIL provides insurance coverage for employees in the event of workplace accidents or occupational diseases. The INAIL number ensures that companies are paying the necessary insurance premiums to cover these risks.
  • The INAIL number can be found in company payroll records, insurance contribution reports, or official correspondence from INAIL.
  • It can also be accessed through the company’s online account on the INAIL portal.
• Full Name of the Person Who Signed Power of Attorney
  • Person who has authority to sign company documents and mostly have access to the authority sites.
• Codice Destinatario
  • The Codice Destinatario is a seven-character code used in Italy's electronic invoicing system. It identifies the recipient of an invoice and specifies where to send it through the Sistema di Interscambio (SDI). it is provided by the e-invoicing software or platform a business uses, and can typically be found in the account settings or invoicing section of the platform.
  • Visit the government website here to read more information.
• PEC - Posta Elettronica Certificata
  • PEC stands for "Posta Elettronica Certificata," which means "certified email." This type of email guarantees legal certainty of the sender's identity, the date and time of sending and receiving the email, and its content.
  • PEC services are provided by several certified providers in Italy. These providers include companies like Aruba, Poste Italiane, Legalmail, and Register.it, among others. Businesses and professionals must sign up for a PEC account through one of these certified providers, usually for a small annual fee.

Required Company Documents

• Power of attorney (Name and Surname)
  • Click here to view the template and the instruction.
• Certificazione Unica
  • Certificazione Unica (CU) is a tax document issued by employers to their employees. It provides a summary of the individual's income and taxes paid throughout the year.
• Dm80
  • This is a document from INPS that declares the sector you are in.
• Pin INAIL
  • It refers to the Personal Identification Number (PIN) issued by the National Institute for Insurance against Accidents at Work (Istituto Nazionale Assicurazione contro gli Infortuni sul Lavoro).
• F24 forms
  • Italian payroll providers typically handle the preparation and submission of the F24 model report on behalf of their clients. This document, which contains information on taxes and social contributions to be paid monthly, needs to be provided from December of the previous tax year.
• Uniemens and accruals, including TFR
  • Uniemens is a mandatory monthly report that Italian companies submit to INPS (National Social Security Institute). This data flow contains detailed information about employees and collaborators, including salaries, social security contributions, and working periods. The document doesn't report taxes and only includes TFR (severance pay) data if it's allocated to the INPS treasury fund—a requirement for companies meeting specific criteria.
• Credential to access the complementary pension funds (credenziali per accedere ai fondi di previdenza complementare)
  • Required when there is complementary pension
• CPI Autorizzazione
  • The Legal Representative of the company must sign this and send back. This is compulsory to send the UNILAV on behalf of the client. The payroll specialist will share the document with you to share with customer.
• Detailed payroll summary report (Riepilogo paghe generale)
  • A monthly breakdown of the gross to net values from Dec of the previous year to the period before going live
• Report voci retributive
  • A detailed report outlining payroll elements, including wage components, tax deductions, social security contributions, and the specific tax treatment for each item.
• Contributive e fiscali
  • "Contributive e fiscali" refers to documents detailing both social security contributions and tax matters. These records provide specific information about social security deductions from an employee's salary, as well as any related tax deductions or credits.
• Ferie e permessi quantità ed importo
  • "Ferie e permessi quantità ed importo" translates to "Vacation and leave quantity and amount" in English. This phrase typically refers to a document or record that outlines the amount of vacation days and various types of leave entitlements an employee has accrued or is entitled to receive, as well as any associated monetary value.
• Documentazioni per prestiti e pignoramenti
  • If applicable, "Documentazioni per prestiti e pignoramenti" in Italy refers to the documentation required for loans and liens.
• Report Sindacati
  • If applicable, Union reports related to payroll deductions about the amounts withheld from the wages of employees who are union members, to be periodically remitted to the union organization.

Required Employees Documents

• Work Contract
  • Employment agreement
  • Individual agreement (If applicable. For instance, when an employee signs an on-call agreement, there's an individual agreement in addition to the regular employment contract. This separate agreement details the management and payment of on-call work. Similarly, smart working arrangements are governed by individual agreements when not established at the company level.)
• Personal Identification
  • ID card or Passport and Tax code
• Massimale Contributivo Form
  • The "Massimale Contributivo Form" is a document used to declare and calculate the maximum pension contribution an individual can make to their pension fund. It includes details such as the individual's contributions, years of service, and other factors that determine the maximum pension entitlement. This form is crucial for pension planning, helping individuals understand their maximum pension benefits based on their contributions and work history.
• Detrazioni (Tax deductions)
  • "Detrazioni" refers to tax deductions that individuals can claim to reduce their taxable income or offset their tax liability.
• Trattamento Integrativo
  • "Trattamento Integrativo," also known as the "IRPEF bonus" or "former Renzi bonus," is a financial benefit for low to middle-income employees. Since 2021, it's automatically included in payslips for workers earning up to €28,000 per year, with a maximum annual amount of €1,200. This bonus gradually decreases for those with incomes between €28,000 and €40,000. Its purpose is to reduce the tax burden and boost the disposable income of eligible workers.

Required Financial Documents

• Migration file
  • If your organization is presently utilizing Zucchetti, you will have the capability to download a migration file.
  • If you are not using Zucchetti, your current service provider can generate a file for you based on the provided specifications.
• Employee Payslips
• Payroll Summary, Gross to Net report (Riepilogo paghe generale)
  • A "Gross to Net report" is a financial document that details the conversion of an employee's gross pay (total earnings before deductions) to their net pay (take-home amount after deductions). It is crucial for payroll transparency. It details how employee pay is calculated, including deductions. This report helps ensure payroll accuracy, enables employees to understand their compensation, and assists employers in complying with tax regulations. This report typically includes details such as:
  1. Gross Earnings: The total amount of money earned by the employee before any deductions are made. This can include regular wages, overtime pay, bonuses, and other forms of compensation.
  2. Deductions: Various deductions taken from the gross pay, such as taxes (federal, state, and local), Social Security contributions, Medicare contributions, retirement plan contributions, health insurance premiums, and any other voluntary deductions agreed upon by the employee.
  3. Net Pay: The final amount of money that the employee receives after all deductions have been subtracted from the gross earnings. This is the actual amount of money that the employee takes home.

Company Bank Details

• Bank Name
• Account holder name
• Account ownership type (Personal or Business)
• IBAN
• BIC/SWIFT

2. Payment and Payroll Information

Payment Information

• What is the company's salary payout day?
• When is the company's payout day in December?
• The salary payment date if it falls on Saturday
  • e.g. The last working day before the Saturday
• The salary payment date if it falls on Sunday
  • e.g. The last working day before the Sunday
• The salary payment date if it falls on a public holiday
  • e.g. The working day before the public holiday
• Payment methods used to pay employees’ net salaries
• What is the Action Date on the SEPA file (if applicable)?
• How many days before the payday do you need to receive the net salary payment file?
  • e.g. 1 - 2 days
• The date payslips need to be delivered to employees on
  • e.g. “on the payout date” or “1 day before the payout date” or “2 days before the payout date”

General Company Info

• What days of the week, are your working days?
• The working days of the week. Do all employees work 5 days per week (Monday - Friday)?
  • e.g. All Employees work from Monday to Friday Full time employees work from Monday to Friday Part-time employees work from Monday - Sunday, according to pre-arranged shifts
• Types of employment contracts you have
  • e.g. Full time, Part time, Temporary, Fixed term
• Do you have expats employees on payroll? If so, how many?
• How is your payroll processing currently done?
• The normal working hours for employees (start and end hour)
  • e.g. From 08h00 to 17h00 with 1 hour lunch
• The average working hours per person per day
• Do any employees work reduced working hours?
• The average working hours per person per month
  • e.g. 8 hours per day x 5 days per week x 52 weeks per year / 12 months = 173.33 hours per month
• How are salaries pro-rated?
  • e.g. Annual Salary / 14 payroll periods / 26 days per month * days worked to determine the daily salary
• Our standard output reports are a Gross to Net report, Payslips and the country legally required documents. Do you need any other specific custom report?

3. Leave-related Information

Annual Leave

• How many annual leave days are employees entitled to per annum?
  • Statutory minimum leave entitlement is expressed in hours, and is calculated as four times the number of hours worked per week. For instance, if an employee works 40 hours per week throughout the year, they are entitled to 160 hours of leave per year, which equates to 20 days of leave.
• Should leave accrual be pro-rated if an employee starts in the middle of a pay period?
• Do employees accrue annual leave while on maternity/paternity leave?
• Do employees accrue annual leave while on sick leave?
• What happens if an employee uses all of their annual leave?
  • e.g. If an employee leaves the company with a negative balance of days or hours, these will be deducted from their final payslip.

Sick Leave

• How is sick leave handled and calculated, and what percentage of wages is covered?

  • In Italy, employees are entitled to paid sick leave, initially covered by the employer and later by the government. Here's how it works:

    • The first three days, known as "waiting days" ("giorni di carenza"), are typically paid in full by the employer. The National Collective Labor Agreements (CCNL) for each sector establish the specific methods and terms.
      • Statutory sick pay begins on the fourth day of illness:
        • From the 4th to the 20th day, sick pay is generally 50% of average daily wages.
        • From the 21st to the 180th day, this increases to 66% of average daily wages.
        • Sick pay is capped at a maximum of 180 days per calendar year.

    During sick leave, employment continues to have legal effect. Employees continue to accrue all rights, including seniority, holidays, and permits.

• What happens after a year of an employee being sick?

Maternity Leave, Child Care and Parental Leave

• How much of the salary is covered during maternity leave?
  • Female employees are entitled to five months of paid maternity leave. This typically includes two months before and three months after the expected date of childbirth. During this period, employees receive an allowance from the National Social Security Body, which is equivalent to 80% of their regular salary.
• For how long may an employee go on maternity leave and be covered?
• How is paternity leave currently handled and calculated?
  • Fathers are entitled to the full or remaining period of maternity leave only in specific circumstances: if the mother doesn't take it due to death or severe illness, or if the father has exclusive custody of the child. This right doesn't apply in any other situations.
  • Fathers in Italy are entitled to mandatory paternity leave of 10 days, to be taken within the first 5 months after a child's birth, adoption, or foster placement. This leave is paid at 100% of the father's salary and can be taken consecutively or as separate days. It's separate from the mother's maternity leave. While rules may vary slightly for self-employed and public sector employees, the main goal is to support fathers in the early stages of their child's life.
• How is parental leave currently handled and calculated?
  • Parents are entitled to parental leave during the first 12 years of their child's life. This leave allows them to take time off work to care for their children. Either parent can take up to six months of leave. Alternatively, if only one parent takes the leave, they can extend it to a maximum of 10 months.

Other Leave

• Do you have any other leave types that your company has? If so, how does it works?
• What leave system are you currently using to process leave transactions?
• Do you plan on using Remote to process leave transactions?

4. Statutory Information

Employee Information

• Do you have an active Disabled Employment Agreement?
  • When you have more than 15 employees, you must have an agreement in place with the local authorities.
• INAIL risk positions
  • INAIL, the Italian National Institute for Insurance against Accidents at Work (Istituto Nazionale per l'Assicurazione contro gli Infortuni sul Lavoro), classifies workplaces into "risk positions" (posizioni di rischio). These classifications are based on the likelihood and severity of workplace accidents and occupational diseases. Factors such as industry type, work activities, and potential hazards determine the risk positions. They serve as a guide for setting appropriate insurance coverage levels and premiums that employers must pay to INAIL.

Examples of risk positions include:

1. Low-Risk Office Work: Administrative tasks and desk work in environments with minimal accident or injury likelihood.

2. Medium-Risk Manufacturing: Assembly line work, machine operation, and manual material handling, with moderate accident and injury risks.

3. High-Risk Construction: Building sites and maintenance, featuring hazards like falls, electrocution, and heavy machinery operation.

4. Extreme-Risk Hazardous Materials Handling: Industries working with dangerous chemicals, radioactive materials, or other hazardous substances, where accident and exposure risks are significant.

   Employers must adhere to specific safety regulations and protocols that align with their workplace's risk position to ensure employee health and safety. INAIL provides support, guidance, and insurance coverage to mitigate financial risks associated with workplace accidents and occupational diseases.

• INAIL Contribution Rates by Risk Position

  • INAIL contributions are a crucial part of Italy’s workplace safety and social security system, protecting employees and covering the costs associated with work-related accidents and occupational diseases. Its rates vary based on factors such as industry, company size, and historical accident rates. INAIL assigns each economic sector a specific risk class ("classe di rischio") based on its associated risk level. Here's an illustrative example of INAIL contribution rates for different risk positions:

  • Low-Risk Positions: 0.5% to 2% • Medium-Risk Positions: 2% to 5% • High-Risk Positions: 5% to 10% • Extreme-Risk Positions: 10% or higher

  Please note that these percentages are illustrative only and may not reflect current rates. Employers should consult INAIL or professional advisors for accurate contribution rates specific to their industry and risk position. Rates may fluctuate due to legislative changes or INAIL adjustments based on shifting risk profiles across various economic activities.

• Is Time-off processed in arrears?

What’s next?

After collecting and submitting the required documents and information, Remote will review everything and proceed with setting up your payroll. Make sure all the details are accurate to avoid any delays in the process.