Covip (the Pension Fund Supervision Commission) has taken steps to standardize the procedures relating to forms and communications but also registration and payment of the related contribution to supplementary pension. On this issue, the Commission has defined three communications outlines according to whether these are mutual funds, open funds, or Individual Pension Plans in a defined contribution plan which must be sent to enrollees at the latest by 31 March of each year. This notice represents a statement of the individual contribution situation accrued at 31 December of the previous year, the transactions carried out in the year and the actual costs incurred.
(Il Sole 24 Ore)
More than a year since the issue of the stimulus package under Law Decree 78/2009 (Law 102/2009), the rules have been defined for fully implementing the job saving legislation. The agencies issuing the clarification were INPS, with message no. 20810/2010 regarding the contribution aspects, and INAIL, with note issued on 2 July 2010, concerning computation of the insurance premium. The inter-ministerial Work-Economy Decree dated 18 December 2009 set forth that workers who were receiving income supplements with job preservation benefits (wages guarantee fund, extraordinary wages guarantee fund, wages guarantee fund in exception, and solidarity contracts) can be involved by employers in training or professional redevelopment projects. This brings dual benefits – the company can take advantage of the periods of “work stoppage” by involving laid off employees in training activities; workers earn a bonus, paid by the employer, which covers the difference between the salary supplements and the compensation that would have been paid under normal production activity. The condition to access these benefits is stipulating a specific trade union agreement.
(Il Sole 24 Ore)
INPS issued its memorandum no. 107 on 5 August 2010, specifying that individuals receiving wage guarantee benefits do not necessarily lose these benefits upon finding work as an independent contractor or employee. Benefit payments and job earnings are not mutually exclusive but must be considered according to the situations that arise in the present complexity of the employment relationship. For example, workers may not continue to collect wage guarantee benefits if they accept a new full-time job under an open-ended contract. If the original employment relationship ends, partial or total cumulative benefits are possible. Benefit recipients may continue to receive the wage guarantee if they accept a temporary, occasional job paid with vouchers (up to € 3,000 per year) or part-time work as long as long as the job is worked in a time frame compatible with the suspended employment relationship, or in respect of the maximum weekly work schedule.
(Il Sole 24 Ore)
The appreciation rate for severance indemnities (T.F.R.) contributions, accrued at 31 December 2009, amounted to 1.869109%.
(Il Sole 24 Ore)
With decision no. 106/2010 issued by its Special Commissioner, INPS declared that debtors are no longer required to pay 1/12 of the debt amount upon submitting the request for a social security payables payment plan and the payment plan may include the portion of the contribution withheld from employees but not paid to INPS by the employer. Rather, if the tax bill has already been issued, request for a payment plan should not be submitted to INPS but rather, directly to the relevant collection agency.
(Il Sole 24 Ore)
In its message no. 20286/10 concerning overseas secondment of employees, INPS declared that upon issue of the A1 form (i.e., the certificate relating to the social security legislation applicable to the person involved), INPS offices must communicate with the relevant institution of the placement country of the worker, notifying it of the legislation that applies in the country of origin.
(Il Sole 24 Ore)
In its message no. 20810/10, INPS declared that the regional and provincial labour offices must submit to the regional social security office responsible for the territory all agreements that employers have signed with the labour unions to involve workers receiving supplementary income benefits in training and professional redevelopment courses in the company (set forth by Law Decree no. 78/09, converted to Law no. 102/09). In addition, they must also submit the list of individuals who will be taking part in these projects. INPS can then monitor the quarterly expense and keep the Ministry of Labour up to date. In the same message, INPS also specified that workers involved in such training or redevelopment projects must be paid:
· the difference between the supplementary income payable (gross of the required withholdings) and the original gross compensation paid by the employer as compensation;
· the deemed contribution corresponding to the base compensation set forth by law for the type of supplementary income payable to the employee, as a benefit, accredited by INPS.
(Il Sole 24 Ore)
In its message no. 18610/10, INPS illustrated the assistance given to large enterprise, i.e., administrative audit actions implemented by an electronic, computerized procedure that grants access to key company data. Businesses subjected to this type of audit have average monthly contribution payables of 300 thousand euro (based on the DM 10 presented in 2009). Companies’ social security contribution systems will be verified by access to the “company social security drawer" and to the accounting records and adjustment notes. Furthermore, INPS will check the prerequisites to requests for income supplements and the types of employment contracts entered into with employees. Finally, after completing the analysis of the company situation and in view of any social security discrepancies, INPS can request a company meeting to submit specific documentation and collection procedures may be initiated or reports made to supervisory inspectors.
(Il Sole 24 Ore)
Employers who send an employee to work in another EU member state can assure the seconded worker will maintain the social security arrangement prevailing in the country of origin. This protection is afforded as long as i) the employment in the country of destination is performed on behalf of the employer which normally employs that worker; ii) the expected duration of this activity is less than 24 months; iii) the worker is not sent to take over for a worker who has reached the maximum 24-month term.
(Il Sole 24 Ore)
An additional 10% tax is applied to bonuses and stock options assigned to workers who play executive roles in the financial sector and individuals under continuous and coordinated work agreements in the same sector that are “in excess of triple the fixed portion of compensation". This new tax takes effect on 31 May 2010, in accordance with article 33 of Decree Law 78/2010, converted by Law no. 122/2010. The surtax must be withheld by the withholding agent at the time the bonus or stock option is paid. Procedures regarding eventual audits, enforcement, fines and disputes follow the ordinary regulations in regard to income tax.
(Il Sole 24 Ore)
The Inland Revenue Office issued note no. 109657 dated 30 July 2010 which interpreted article 2, letter c), section 1 of Law no. 93/2008 (instituting the special tax regime or a 10% substitute tax on IRPEF and surcharges), envisage that, if connected to increases in productivity, performance and efficiency, additional pay for nighttime or overtime hours as well as the underlying base compensation can be subject to this tax structure. The Agency found that this interpretation aims to favour additional pay for improvements in productivity, innovation and new or better organization of the work.
(Il Sole 24 Ore)
With message no. 20024/2010, INPS affirmed that in the case where the company has used wage guarantees in exception for longer than twelve months with an interruption between the periods of use prior to 1 January 2009 and subsequent to it, only the periods subsequent to 1 January 2009, whether continuous or non continuous, can be used to determine the percentage decrease in the benefits. If there was no interruption, the extension periods will be added together.
(Il Sole 24 Ore)