Employ Candidates Compliantly in Italy

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  1. Overview: Italy
  2. Global PEO and Payroll
  3. Global HR Compliance
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
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Global PEO and Payroll in Italy

Establishing a business in Italy can be complicated, but you don’t have to get bogged down with the details. Acumen’s Global PEO and Payroll solution provide you with the services you need to streamline your international expansion and focus on what’s essential: expanding your business.

Global expansion can be a complex and costly undertaking for any business, particularly when onboarding employees in foreign countries. In many cases, complying with local laws and regulations requires establishing a legal in-country business entity—a process that can take significant time and resources that some employers may not be ready to invest.

Acumen’s Global PEO and Payroll solution is designed specifically for businesses like yours, providing a hassle-free way to operate in Italy without establishing a legal business entity. Using our services, you can avoid many of the risks associated with doing business in Italy.

What is a Global Professional Employer Organisation (PEO)?

A global PEO, or Professional Employment Organization, is a company that contracts with other businesses to provide human resources services. These include payroll and benefits administration, tax reporting, workers’ compensation insurance, unemployment insurance claims management, employee screening, legal and regulatory compliance assistance, HR consulting, immigration services, and other financial services. Businesses can focus on their core competencies and goals by outsourcing these time-consuming and complex tasks to a global PEO.?

Acumen International Provides Comprehensive Global PEO and Payroll Solutions in Italy

As your organization looks to expand globally, many potential benefits will be gained. However, before these benefits can be realized, many companies face various challenges. By being aware of these potential hurdles, your company can be better prepared to overcome them and reap the rewards of global expansion.

Acumen International is a leading provider of global EOR and PEO services, offering secure and efficient solutions for businesses that need to manage international payroll, HR & benefits administration across 190 countries. Our full-service management solutions are tailored to each client’s needs and can include everything from legal talent employment to benefits management and compliance to payroll and taxation.

Global Mobility Services

  • Employee Work Visa and Work Permit sponsorship for your international employees;
  • ​​Dependent Visa;
  • Visa extension;
  • Application for a sponsor license for a foreign national;
  • Relocation assistance.

Checks

  • Health checks;
  • Criminal record checks;
  • Background checks;
  • Education checks.

Onboarding

  • Employment Agreement drafting; 
  • Compliant worker onboarding on your behalf;
  • Account setup in the payroll and HR system​
  • Employee data entry and records maintenance;
  • Managing probation periods.
  • Local Employment Contracts Compliance.

Payroll Administration

  • In-country registration with statutory bodies;​
  • Day-to-day payroll management;
  • Monthly pay-slips; 
  • Payroll frequency and country-specific requirements;
  • Accruals;
  • Allowances;
  • 13th and 14th Salary
  • End of financial year reporting.

Working Time & Time Off Administration

  • Working hours;
  • Overtime;
  • Public holidays;
  • Annual leave;
  • Parental leave;
  • Sick leave;
  • Additional Leave.

Tax Administration & Reporting

  • Tax Reporting frequency and requirements;
  • Employer taxes & contributions;
  • Employee taxes & contributions;
  • Withholding tax;
  • Local tax payments and reporting to local authorities.

Benefits Administration

Mandatory Benefits

  • Health insurance;
  • Workers’ compensation;
  • Unemployment insurance.

Voluntary Benefits

  • Share plans for executives;
  • Expenses reimbursement;
  • Health insurance;
  • Dental treatment;
  • Cars, laptops, and cell phones provision;
  • Business trip processing;
  • Wellness programs.

Offboarding

Compliant handling of offboarding following country-specific regulations and procedures.

  1. Employment agreement termination under specific termination grounds
    • By the employer (dismissal);
    • by the employee (resignation);
  2. Notice period;
  3. Final settlement & severance payments.
  4. De-registration with statutory bodies.

Ongoing Compliance Support

  • Reporting frequency and requirements
  • Payroll regulations and legislation, including regional and local variations and update

Acumen International – Your Professional Employer Organization in Italy

Navigating the Italian legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native Italian speaker. Partnering with Acumen International as a global Professional Employer organization (PEO) provides you with the local knowledge and support you need to conduct business in Italy without concern for legal and compliance risks.

Whether you represent international client companies or you are taking your own business operations abroad, Acumen International’s Global PEO and payroll service allows you to hire and payroll local and expat employees in Italy. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.

International Global Payroll and Taxation in Italy

Employment-related Taxes

Italian law provides for a comprehensive system of social insurance covering the following:

  • Disability, old age and survivorship
  • Illness and maternity;
  • Unemployment and “mobility”;
  • Family allowances;
  • Health care;
  • Labor injuries;
  • Professional diseases.

The system is controlled by the government, with various sections administered by separate public institutions, most notably, the National Institute for Social Security (Istituto Nazionale Previdenza Sociale, or INPS). Collective labor agreements provide for compulsory additional coverage through pension and health funds. Both employers and employees usually make contributions to these funds.

Employer Tax Burden in Italy

Social security contributions are made by both the employee and the employer. The Italian employer, in order to pay social security contributions for employees, must register with the Italian Social Security Administration (Instituto Nazionale Previdenza Sociale or INPS).

13th salary in Country

Italian law provides for an annual 13th payment, paid once a year on the occasion of the Christmas holidays that usually corresponds to one month’s remuneration. In addition, NCBA or even individual contracts may provide for the payment on the 14th payment, usually paid in July.

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How Acumen’s International PEO and Payroll Service Can Benefit Your Business in Italy

Acumen International is a global PEO that provides international employment services to companies with employees working in multiple countries, including Italy. We offer our clients a comprehensive service portfolio that includes:

  1. A single point of contact for all your cross-border payroll administration. A specialized employer organization (GEO) administers a local payroll through the EOR, which gives employees the confidence they will receive statutory employment benefits and protections. Local payroll management is one of the most challenging aspects of running any business, so it’s crucial to work with an experienced GEO having expertise in global payroll.

2. Acument Global Employment Organization (PEO) ensures that the employment contracts meet local labor law requirements. A Global PEO also works with employers to help them understand and comply with employment laws in different countries. The GEO also provides resources and training to employees on their rights and responsibilities under the contract.

3. Acumen Global Employment Organization provides work permits and visas for employees from other countries. This makes it possible for these workers to come to the employer’s country and work there for a set period.

4. A Global Employment Organization(PEO) guides clients on employment law matters such as notice, severance, termination, and statutory benefits.

5. Global Employment Organization(PEO) provides communication and coordination between the EOR, client company, and employees through regional account managers, allowing for a more efficient and effective working relationship between all parties involved.

6. A Global Employment Organization (PEO) strives to create global pay strategies and structures that are fair and competitive. They consider many factors when setting pay levels, such as internal business needs and market rates. They also examine how local taxes and regulations can impact those rates to create a cohesive global model.

7. A Global Employment Organization (GPEO) can help align HR programs with global function and business needs.

8. Compensating your local and expat workforce in Italy and closely adhering to Italian taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.

9. Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf, and take care of all the details of payroll while ensuring full compliance with Italian labor and tax laws.

It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.

Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in Italy by officially employing and compensating your best selected global talent – both locals and expats – without concerns for legal and compliance risks faced by global employers.

Disclaimer: Any of the above information is subject to changes imposed by Italian laws. To get the latest updates on taxation in Italy and in 190 countries worldwide, contact Acumen’s team of global employment experts.

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