PAYROLL IN ITALY

Here’s what you need to know about payroll if your business is expanding into Italy. Italy is a very employee-friendly nation which comes with layers of regulatory complexities and auditing controls. Getting your payroll compliance right means a happy, engaged and motivated workforce. Getting it wrong can result in financial penalties, investigation by local authorities and reputational damage.

While payroll and HR regulations are similar in most developed nations; it's the ‘exceptions’ in each country that tend to cause challenges. For example, every Italian company will have a high number of collective agreements as well as 2nd level agreements in place. Tracking working hours is crucial to ensuring social security and tax contributions are correctly applied.