# The Italian employer withholding return (Modello 770) in plain English > What the Modello 770 is, who files it, and what your Italian employer of record handles for you, explained for US finance teams. If your company hires in Italy, you will hear the term Modello 770 at some point. It sounds like a tax form your team has to prepare. In most setups it is not. This article explains what it is, why it exists, and what finance should expect to see. ## What the Modello 770 is The Modello 770 is the annual return filed by the party that withholds tax at source. In Italy, an employer does not pay salary in full and leave the tax to the employee. The employer holds back income tax from each payslip and pays it to the state. Social security contributions follow a similar path. The 770 is the yearly summary of all that. It reports what was withheld, what was paid over, and to whom. Think of it as the year-end reconciliation between payroll and the tax authority. It does not cover your corporate income tax. It does not replace your own US filings. It only covers amounts withheld from people and professionals the Italian employer paid. ## Who files it The withholding agent files it. That is the entity acting as employer on the Italian side. If you hire through an Employer of Record (EOR), the EOR is the legal employer in Italy. It runs payroll, withholds the tax, and files the return. Your US company does not file the 770 for those employees. You do not need an Italian filing account for it. If you instead hire directly through your own Italian entity, then your entity is the withholding agent. In that case the filing sits with your local accountant or payroll provider. ## When it is due For 2026, the published deadline calendars list the Modello 770 for October 31, 2026. That date falls on a Saturday, so it moves to Monday, November 2, 2026. This date comes from a secondary source, not from the tax authority itself. Your EOR will confirm the date it works to. ## How it connects to other year-end documents The 770 is the last step in a chain. During the year, payroll produces payslips with withheld tax. After year end, employees receive a statement of what they earned and what was withheld. That statement is called the Certificazione Unica. The 770 then reports the same data to the authority in aggregate. This matters for one reason. The numbers must match across payslips, the employee statement, and the return. If they do, the process is boring. That is the goal. ## What US finance actually sees You will not receive a draft 770 to approve line by line. That is normal. Here is what to expect instead: - Monthly invoices from the EOR that show gross pay, employer contributions, and the service fee. - A year-end confirmation that the annual filings were completed. - A copy of the employee statements on request. - Answers when your auditors ask how Italian withholding is handled. If an auditor asks who is responsible for withholding and reporting, the answer is the EOR as legal employer. Keep the service agreement and the filing confirmation on file. ## Questions worth asking your EOR You do not need to learn the form. You do need to know the process is covered. Ask these: 1. Do you file the annual withholding return for all employees placed with us? 2. Can you share confirmation once it is filed? 3. How do you handle corrections if an amount was wrong? 4. Who is the contact if the tax authority sends a notice? 5. How are costs for any late filing penalties allocated if the error is yours? Good answers are short and specific. Vague answers are a warning sign. ## What can go wrong Most problems come from data, not from the form. A wrong tax code for an employee. A bonus paid late and booked in the wrong period. A mid-year change in role that was never updated in payroll. Each of these creates a mismatch that someone must fix. You can reduce the risk on your side. Send compensation changes to the EOR before the payroll cut-off. Tell them about one-off payments, equity events, and relocation allowances early. Clean inputs make a clean annual return. ## The short version The Modello 770 is the employer's yearly report of tax withheld from payroll. Under an EOR model, the EOR files it. Your job is to supply accurate inputs, keep the confirmation, and know the date it is due. Want to see what an Italian hire really costs before you commit? Try the cost calculator. {{< compare-table compact="true" >}} --- Source: https://hiringitaly.com/articles/modello-770-employer-withholding-return-explained.html ยท 2026-10-27