Payroll guide

Employer of Record, your own entity, or contractors?

Three ways to have people working for you in Italy. The right one depends on how many people, for how long, and how much control you need.

Employer of RecordYour own Italian entityContractors
Best forFirst hires, testing the market, small distributed teamsStable teams, local sales, long-term presenceShort, well-defined projects
Time to startDaysMonths: incorporation, bank, registrationsDays
Who is the employerWe areYour Italian companyNobody: a services contract
Your obligations in ItalyNonePayroll, filings, year end, accounts, auditsChecking the relationship stays independent
Main riskLowFixed costs if plans changeReclassification as employment, with back taxes and contributions
Monthly costEmployment cost + €250Employment cost + local accounting and payrollContractor fee

When contractors become a risk

If the person works only for you, on your schedule, with your tools and under your direction, Italian authorities can treat the contract as employment. The company then owes the contributions and taxes it should have paid, plus penalties. Converting the contractor into an employee through our EOR service removes that exposure.

When to move from EOR to your own entity

Usually when the team is large and stable or you need a legal presence for sales. We help set up the company and move the employees over without a break in their employment history.

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