INPS (Italian Institute of Social Security): EU forms for the unemployed

As an annex to its circular letter no. 132/2010 INPS published the EU forms U1 and U2 (competence of INPS) as well as form U3 (competence of the Centro per l’Impiego – Italian Employment Office) for unemployment benefits.

As an annex to its circular letter no. 132/2010 INPS published the EU forms U1 and U2 (competence of INPS) as well as form U3 (competence of the Centro per l’Impiego – Italian Employment Office) for unemployment benefits. This is the result of the application of new provisions in force as of 1 May 2010 regarding unemployment benefits and reimbursements between institutes.

(Il Sole 24 Ore)

Severance pay: set the coefficient of September for the T.F.R.

The appreciation rate for severance indemnities (T.F.R.) contributions, accrued at 31 December 2009, amounted to 2.063881%.

(Il Sole 24 Ore)

10% tax abatement with double refund

There are two possible times for obtaining a refund of taxes paid on sums received by workers during the 2008/2010 period for nighttime and overtime work.

There are two possible times for obtaining a refund of taxes paid on sums received by workers during the 2008/2010 period for nighttime and overtime work. The first at the time of the year-end adjustment operations, while for the credit accruing in the years 2008 and 2009 when tax returns are prepared for the current year, i.e. July 2011. The joint circular letter no. 47/2010 (Ministero del Lavoro – Italian Ministry of Labour and Agenzia delle Entrate – Italian Tax Authority) clarifies, with retroactive effect, which sums are eligible for a tax abatement. The position is extremely open, the following sums are eligible for a tax break: 1. for overtime. The circular letter explains that Resolution no. 83/2010 was not intended to classify overtime work as such as eligible for a tax break, but only overtime related to productivity parameters; 2. for nighttime work. All wages paid for this purpose are eligible for a tax abatement; 3. as indemnity or increase for shift work as long as this organisational model is per se a form of organisational efficiency.

(Il Sole 24 Ore)

For transferred EU workers the Italian rules are valid; foreign regulations are applicable for income subject to social security taxation

The Ministry of Labour with its reply no. 33/2010, explained that employees of EU companies who work in Italy must receive economic and legal remuneration in line with the conditions envisaged for Italian workers.

The Ministry of Labour with its reply no. 33/2010, explained that employees of EU companies who work in Italy must receive economic and legal remuneration in line with the conditions envisaged for Italian workers. The minimum wage level is composed of the employment income identified according to Italian laws. However, remuneration which is taxable for social security purposes and used to calculate contributions is set based on the laws of the foreign country where the company is resident which transferred the employee.

(Il Sole 24 Ore)

Agenzia delle Entrate: bonus for increase in number of employees

The Agenzia delle Entrate with its resolution no. 195/E of 12 October 2010, clarified that the employee bonus – introduced with Law no. 244/2007 – is also due in the event of employee dismissals or resignations

The Agenzia delle Entrate (Italian Tax Authority) with its resolution no. 195/E of 12 October 2010, clarified that the employee bonus – introduced with Law no. 244/2007 – is also due in the event of employee dismissals or resignations as long as the employer maintains, on an annual average, the increase in number of employees required by law (three years, or two for SMEs).

(Il Sole 24 Ore)

INPS: exemption of contributions for stock option plans

INPS, with its message no. 25602/10, clarified that the exemption from contributions applicable to stock option plans also regards those which entail assignment of “limited” shares or rights to future assignment of shares.

INPS, with its message no. 25602/10, clarified that the exemption from contributions applicable to stock option plans also regards those which entail assignment of “limited” shares or rights to future assignment of shares. The Institute explained that the reference law – represented by article 24bis, paragraph 8, of Italian Legislative Decree no. 112/2008 – includes a tax exemption for employment income resulting from stock option plans exercised after 25 June 2008 and states that in the absence of a legal definition of stock option this exemption is applicable not only for plans with assignment of option rights but also those with assignment of granted shares in compliance with the conditions of such plans. Lastly, incentive plans with payment in cash for the value of the shares remain excluded.

(Il Sole 24 Ore)

INPS: the IVS (disability, old age and survivors pension) contribution of the voucher for casual work goes to CIG (redundancy scheme)

INPS with its circular letter no. 130/10, provided clarifications related to the compatibility and possibility of accumulation of redundancy payments and other financial aid with casual work for the years 2009 and 2010.

INPS with its circular letter no. 130/10, provided clarifications related to the compatibility and possibility of accumulation of redundancy payments and other financial aid with casual work for the years 2009 and 2010. In particular, it explains that for casual work performed in 2009 and 2010 by beneficiaries of redundancy payments within the limits of 3,000 euro net, the IVS amount included in the “voucher” is not credited to the INPS contribution of the self-employed worker in favour of beneficiaries, but is earmarked for the entity which sustains the non-contributory payment for the benefits or aid.

(Il Sole 24 Ore)