Outsourcing payroll in Italy
What a provider takes off your hands, where foreign employers go wrong, and how to choose.
What a payroll and EOR service covers
| Area | What we do |
|---|---|
| Onboarding | Contract under the right CCNL in English and Italian, hire notification, tax code, registration with INPS and INAIL |
| Monthly payroll | Gross-to-net, payslips, F24 payments, UniEmens, LUL |
| Absences | Leave, sickness, parental leave, overtime |
| Year end | CU for every employee, annual returns, INAIL self-assessment |
| HR administration | Personnel files, amendments, renewals, terminations, benefits |
| Your side | One invoice in USD a month with the payroll summary |
Why outsource payroll in Italy
- Fewer errors and penalties. Rates, tax credits and CCNL tables change during the year; late or wrong F24 payments carry penalties and interest.
- No local setup. No Italian payroll software, no local accountant, no Italian entity if you use the EOR service.
- Expertise on call. Specialists follow INPS, INAIL and tax changes so your team does not have to.
- On-time pay. Employees are paid correctly and on time, which matters for retention.
Where foreign employers go wrong
- Wrong CCNL or job level: pay below the agreement's minimum, or missing allowances it grants.
- Part-time and fixed-term contracts: contributions and leave calculated as for full-time.
- Late F24 payments: penalties and interest from day one.
- Forgotten accruals: 13th and 14th month and TFR not budgeted, so year-end costs come as a surprise.
- Mismatched calendars: Italian payroll closes on the calendar month, which may not match your fiscal periods.
- Missed changes: tax brackets, contribution rates and reporting formats change every year.
Reporting to your headquarters
Every month you receive, in English and USD:
- the payroll summary for each employee: gross pay, employer costs, net pay;
- the accruals that build up during the year: 13th and 14th month, unused leave, TFR;
- a cost forecast for the rest of the year, for your budget;
- the leave and absence balance.
The data comes in a format your accounting team can import, and stays available for auditors.
Choosing a provider: questions to ask, and our answers
| Ask | Our answer |
|---|---|
| Who is the legal employer in Italy? | We are, directly. No third-party subcontractor. |
| Which CCNL will apply and why? | Stated in the quote, chosen from the job and sector. |
| What exactly is in the price? | A flat €250 per employee per month, plus the actual employment cost billed month by month. |
| Which currency do you invoice in? | USD, at the EUR reference rate of the invoice date. |
| Where is employee data kept? | On servers in the EU, under the GDPR. |
| How do you handle changes in the law? | We apply them in payroll and tell you before they change your cost. |
| Who answers the employee's questions? | We do, in Italian and English. |
FAQ
How often are employees paid in Italy?
Monthly, with the 13th and, under some agreements, the 14th month on top.
What is the Certificazione Unica?
The annual certificate of income, withheld tax and contributions. The employer gives it to the employee and files it with the tax agency by 16 March; the employee uses it for their tax return.
Do employees file their own tax return?
Many do, especially to claim deductions such as medical expenses. The employer's withholding already covers most of the tax due.
How much are social security contributions?
Roughly 9–10% of gross pay for the employee and about 30% for the employer, depending on sector and company size, plus INAIL insurance paid by the employer.
Can I hire a non-EU national?
Yes, once the work permit is granted. We handle the application as the employer.