Global payroll in Italy

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Rivermate's global payroll solution helps companies hire remote employees in Italy . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our global payroll solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Italy.

1. Grow your team in Italy with Rivermate as your global payroll provider

Payroll, benefits, taxes, and compliance can be difficult to manage in , particularly if you don't have established local relationships. You can hire employees in effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Introduction to global payroll in Italy

If you are interested in hiring a remote team in Italy, or even just individual remote employees in Italy, then you have come to the right place!

Rivermate is an Employer of Record (EOR) that offers Italy payroll solutions. As a Italy payroll provider, we will cover everything from salary, benefits, employer-to-employee contributions, and especially payroll compliance in Italy. We are confident Rivermate’s payroll solutions Italy will help you grow as a business—because now, you won’t have to worry about your payroll solutions Italy. We take care of everything payroll!

With Rivermate, you can run Italy payroll services in just one click—regardless of currency, benefits, insurance, and your local labor laws. Everything is automated. Our priority is for you to focus on your company’s strategy and growth.

Our Rivermate Global Payroll services are made especially for startups and scaleups. We know that startups try to be extra prudent when it comes to choosing a payroll provider, so it is our mission at Rivermate to be your most reliable and cheapest payroll provider option. So if you’re looking for global payroll providers for small businesses, look no further and book a call with us now!

3. How to set up global payroll in Italy

You or your global EOR will have to set everything up once you've decided on the best Italy payroll option for your company. To begin, your business or a legal representative must register with the Labor Office, the Social Security Institute, and the Insurance Institute. If you do not register by the deadlines, you will face a number of penalties.

After that, you'll need to obtain a company identification number and fiscal code by signing documents in front of a notary public. Your employees will not be able to start working until you receive the fiscal code.

4. Taxation rules for global payroll in Italy

Employees in Italy pay an income-based rate under a progressive income tax. Contributions to social security vary depending on the industry sector and management level. Employees, on the other hand, typically contribute 10% of their gross salary, while employers contribute approximately 35% of the employee's salary.

Following the country's complex taxation laws is one of the most difficult aspects of setting up payroll in Italy. As an employer, you will be responsible for deducting and submitting the appropriate taxes from each employee's paycheck each month. You must also account for local taxes based on your employees' residences.

5. Payroll options for companies in Italy

Companies that wish to expand their operations globally have four different payroll options in Italy. These payroll options are:

1. Internal Payroll. This payroll option is applicable for already established companies in Italy. It includes devoting an entire Human Resources staff to running the company's payroll procedures.

2. Remote Payroll. Smaller firms may lack the capacity to handle their own payroll, but they may add their workers to the parent company's payroll. This action, on the other hand, requires considerable thinking. You must guarantee that you follow the rules and laws of each nation.

Working with a local outsourcing firm is one method to retain money in the local economy, but you'll still need to study all of the local rules and regulations, since you'll be held responsible.

3. Italy payroll outsourcing: Outsourcing your payroll to an Employer of Record in Italy, such as Rivermate, is another alternative for Andorra payroll outsourcing. We can manage all aspects of your payroll, including compliance. Send us a note and we'll get back to you as soon as possible!

6. Payroll compliance Italy

It is the obligation of the employer to ensure that all payroll-related transactions are properly documented and recorded. All salaries and compensation payments must adhere to the local minimum wage as well as other applicable laws and regulations.

Rivermate's payroll services in Italy can assist you in staying in compliance with the country's ever-changing payroll rules. We provide an all-inclusive solution that covers everything from compliance and reporting to salary payments.)

7. How to manage payroll in Italy

Companies that have a business presence in Italy have different ways of managing payroll. However, most of the options you have for running payroll in Italy are either expensive or require establishing a subsidiary in Italy. The cheapest, most efficient, and most reliable payroll processing system in Italy is by outsourcing payroll to Employers of Record (EOR) in Italy. Rivermate is one of those Employers of Record.

At Rivermate, we offer you the most efficient, most compliant, and cheapest HR and Payroll Management services in Italy. We do this by taking care of your payroll-related needs, such as keeping track of your employees’ financial records, including incentives, gross and net salary, and payslips, all the while staying compliant with the labor laws in Italy. Because we do your online payroll management for you, you can have absolute focus on your business’ strategy and growth.

Rivermate is all about growth through collaboration and we achieve this by offering the most reliable yet cheapest services for managing payroll for small businesses in Italy.

8. Entitlement and termination terms in Italy

Employee firing is now prohibited under COVID-19 until June 30, 2021.

In Italy, the employee must be notified in writing. If a labor court rules that the termination was unjust, the company must either restore the employee or compensate the employee.

Employers are required to offer notice of termination for all forms of terminations, unless the termination is for grave disciplinary reasons. Notice periods may be specified in the collective bargaining agreement, or a payment in lieu of notice may be made. A contract of employment may be terminated in one of the following ways: resignation, employer dismissal (including for "good cause"), expiration of a defined period, mutual consent, or retirement.

9. Compensation in Italy

In Italy, there is no minimum wage at the national or regional level, but a CBA (contract between an employer and employee) can force one. Employees are entitled to a salary that enables them to live comfortably. Even if your company does not comply with the minimum wage law, courts will look to a negotiated minimum wage as being a contractually agreed-upon rule.

While 13th-month and annual bonuses are not required by Italy's compensation laws, these bonuses are prevalent in the majority of CBAs. Many employers will offer employees a bonus before Christmas, and according to CBA regulations, companies that are subject to the law are required to pay employees 14th month salary during the summer months.

10. Working hours and overtime in Italy

The standard workweek is 40 hours spread across five days, and employees are not permitted to work more than 48 hours spread across seven days, including overtime, on an average basis over four months. Collective bargaining agreements may slightly alter these rules. Although there is no legal limit to the number of hours an employee can work in a single day, there is a practical one, as employees must take 11 consecutive hours of rest every 24 hours. Workers under the age of sixteen may not work more than seven hours per day, and workers between the ages of sixteen and eighteen may not work more than eight hours per day.

11. Employee benefits in Italy

The National Health Service (SSN) manages national health insurance in Italy, and it is funded through direct taxation as well as indirect taxation by employers and employees. When you register with the Local Health Service, you will be given a social security number and a health card. The employee's health card entitles him or her to low-cost or no-cost treatment.

There is also the option of purchasing private health insurance. Individuals with private insurance can freely choose their own doctor and specialist, be treated at private hospitals, and so on. Many residents have private health insurance policies that cover the portion of medical bills not covered by social security.

Some employers offer allowances for company cars, cell phones, and meal vouchers. Training is frequently provided by high-tech companies.

12. Why choose Rivermate as your global payroll provider in Italy

Establishing an entity in to hire a team takes time, money, and effort. The labor law in has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in via our Employer of Record (EOR) / PEO solution.

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