Year-end adjustments, miscellaneous items
- Dec. 13, 2021
- Reading time: 5 min
With regard to the year-end tax and social security adjustment that will be processed with the December 2021 payroll, we are requesting the following documentation, if available. For organizational reasons, please submit it to our firm no later than December 20, 2021:
1) Insurance Policies: If insurance policies have been taken out for employees, managers, and contractors, and if you have not yet done so, you must send us the policy statements and/or receipts for payments made in 2021, distinguishing between:
Premiums for insurance policies covering the risk of death or permanent disability of at least 5% (for contracts entered into or renewed after 2001) and against occupational and non-occupational accidents (in the case of combined policies, the percentage of coverage for non-occupational risks must be indicated);
Premiums for insurance policies covering the risk of not being self-sufficient in performing activities of daily living;
Awards for health insurance.
The documentation must be submitted to the Firm even if the payments were made to “entities and funds established solely for welfare purposes” and “in accordance with the provisions of a contract, agreement, or company policy.”
For each of these, you must provide the names of the employees covered by the insurance policies, along with the amounts paid for each.
2) Fringe benefits: since the benefit for charitable donations was abolished as of May 29, 2008, if the employer provides, including during the Christmas holidays, goods and/or services or vouchers representing them, even if provided by third parties (payments in kind and non-monetary), whose value does not exceed, during the tax year, together with other fringe benefits, €516.46 for the year 2021, tax and social security exemptions may apply. We ask that you send us a list detailing the value of the Christmas gift package or any other goods provided to employees and/or contract workers.
3) Provisional Single Certifications for Other Employment Relationships: Companies are encouraged to inform their employees and contractors that if the latter have had multiple employment relationships during the year 2021, they may settle their tax liability with their December 2021 pay, by submitting to their current employer the tax forms in their possession, which may contain all the data necessary for the adjustment, with particular reference to information regarding income from employment and similar sources, taxes paid, deductions for employment, and those for dependents.
4) Tax relief on productivity-based compensation: for companies that have entered into second-level agreements for the payment of amounts related to productivity bonuses, so that the substitute tax (and thus the tax relief) may be applied to such amounts the employee must submit a written request, provided the income requirements are met (income limit of €80,000.00 for the year 2020), only in the following cases:
(a) The withholding agent required to apply the substitute tax is not the same entity that issued the Single Certification for 2020;
(b) The withholding agent required to apply the substitute tax issued the Single Certification for 2020 for a period of less than one year;
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