# Outsourcing Payroll in Italy

> Why outsource payroll in Italy, common mistakes of foreign employers, reporting to headquarters, and the questions to ask a provider.


<section> <span class="eyebrow"><a href="payroll-guide.html">Payroll guide</a></span> <h1 id="outsourcing-payroll-in-italy">Outsourcing payroll in Italy</h1> <p class="lede">What a provider takes off your hands, where foreign employers go wrong, and how to choose.</p> </section> <section id="services" class="prose"> <h2 id="what-a-payroll-and-eor-service-covers">What a payroll and EOR service covers</h2> <div class="tbl"><table> <thead><tr><th>Area</th><th>What we do</th></tr></thead> <tbody> <tr><td>Onboarding</td><td>Contract under the right CCNL in English and Italian, hire notification, tax code, registration with INPS and INAIL</td></tr> <tr><td>Monthly payroll</td><td>Gross-to-net, payslips, F24 payments, UniEmens, LUL</td></tr> <tr><td>Absences</td><td>Leave, sickness, parental leave, overtime</td></tr> <tr><td>Year end</td><td>CU for every employee, annual returns, INAIL self-assessment</td></tr> <tr><td>HR administration</td><td>Personnel files, amendments, renewals, terminations, benefits</td></tr> <tr><td>Your side</td><td>One invoice in USD a month with the payroll summary</td></tr> </tbody> </table></div> </section> <section id="outsourcing" class="prose"> <h2 id="why-outsource-payroll-in-italy">Why outsource payroll in Italy</h2> <ul> <li><strong>Fewer errors and penalties.</strong> Rates, tax credits and CCNL tables change during the year; late or wrong F24 payments carry penalties and interest.</li> <li><strong>No local setup.</strong> No Italian payroll software, no local accountant, no Italian entity if you use the EOR service.</li> <li><strong>Expertise on call.</strong> Specialists follow INPS, INAIL and tax changes so your team does not have to.</li> <li><strong>On-time pay.</strong> Employees are paid correctly and on time, which matters for retention.</li> </ul> </section> <section id="challenges" class="prose"> <h2 id="where-foreign-employers-go-wrong">Where foreign employers go wrong</h2> <ul> <li><strong>Wrong CCNL or job level:</strong> pay below the agreement's minimum, or missing allowances it grants.</li> <li><strong>Part-time and fixed-term contracts:</strong> contributions and leave calculated as for full-time.</li> <li><strong>Late F24 payments:</strong> penalties and interest from day one.</li> <li><strong>Forgotten accruals:</strong> 13th and 14th month and TFR not budgeted, so year-end costs come as a surprise.</li> <li><strong>Mismatched calendars:</strong> Italian payroll closes on the calendar month, which may not match your fiscal periods.</li> <li><strong>Missed changes:</strong> tax brackets, contribution rates and reporting formats change every year.</li> </ul> </section> <section id="reporting" class="prose"> <h2 id="reporting-to-your-headquarters">Reporting to your headquarters</h2> <p>Every month you receive, in English and USD:</p> <ul> <li>the payroll summary for each employee: gross pay, employer costs, net pay;</li> <li>the accruals that build up during the year: 13th and 14th month, unused leave, TFR;</li> <li>a cost forecast for the rest of the year, for your budget;</li> <li>the leave and absence balance.</li> </ul> <p>The data comes in a format your accounting team can import, and stays available for auditors.</p> </section> <section id="choosing" class="prose"> <h2 id="choosing-a-provider-questions-to-ask-and-our-answers">Choosing a provider: questions to ask, and our answers</h2> <div class="tbl"><table> <thead><tr><th>Ask</th><th>Our answer</th></tr></thead> <tbody> <tr><td>Who is the legal employer in Italy?</td><td>We are, directly. No third-party subcontractor.</td></tr> <tr><td>Which CCNL will apply and why?</td><td>Stated in the quote, chosen from the job and sector.</td></tr> <tr><td>What exactly is in the price?</td><td>A flat €250 per employee per month, plus the actual employment cost billed month by month.</td></tr> <tr><td>Which currency do you invoice in?</td><td>USD, at the EUR reference rate of the invoice date.</td></tr> <tr><td>Where is employee data kept?</td><td>On servers in the EU, under the GDPR.</td></tr> <tr><td>How do you handle changes in the law?</td><td>We apply them in payroll and tell you before they change your cost.</td></tr> <tr><td>Who answers the employee's questions?</td><td>We do, in Italian and English.</td></tr> </tbody> </table></div> </section> <section id="faq" class="prose"> <h2 id="faq">FAQ</h2> <h3 id="how-often-are-employees-paid-in-italy">How often are employees paid in Italy?</h3><p>Monthly, with the 13th and, under some agreements, the 14th month on top.</p> <h3 id="what-is-the-certificazione-unica">What is the Certificazione Unica?</h3><p>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.</p> <h3 id="do-employees-file-their-own-tax-return">Do employees file their own tax return?</h3><p>Many do, especially to claim deductions such as medical expenses. The employer's withholding already covers most of the tax due.</p> <h3 id="how-much-are-social-security-contributions">How much are social security contributions?</h3><p>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.</p> <h3 id="can-i-hire-a-non-eu-national">Can I hire a non-EU national?</h3><p>Yes, once the work permit is granted. We handle the application as the employer.</p> </section> <section class="prose"><h2 id="more-in-the-guide">More in the guide</h2><ul> <li><a href="italy-eor-vs-entity.html">EOR, entity or contractors?</a></li> <li><a href="italy-payroll-calendar.html">The payroll calendar and filings</a></li> <li><a href="italy-salary-components.html">What makes up an Italian salary</a></li> <li><a href="italy-employment-contracts.html">Contracts, leave and termination</a></li> <li><a href="italy-payroll-outsourcing.html">Outsourcing payroll and choosing a provider</a></li> </ul></section> <div class="cta"><a class="btn" href="contact.html">Get a quote</a></div>


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