Social Security Adjustments and Fringe Benefits for 2022
- January 2, 2023
- Reading time: 5 min
News . 54/2022
Subject: Instructions for the social security adjustment of fringe benefits provided under the corporate welfare measures adopted by the Aiuti bis and quater decrees.
With Message No. 4616/2022 the INPS provides operational instructions for calculating social security adjustments in cases where fringe benefits are provided, for which the exemption limit—limited to the 2022 tax year—has been raised to 3,000, noting that the increase in the exemption threshold also applies for the purposes of determining the social security taxable base.
For the purposes of the year-end adjustment, the Institute outlines the three methods available for claiming a refund of contributions paid.
Specifically, you will be able to:
1. Use the "FRIBEN" contribution variable exclusively for reports pertaining to December 2022;
2. through an ex officio adjustment carried out by INPS via a two-way data exchange system, with the subject line "FRINGE BENEFITS UP TO €3,000," by submitting a statement of responsibility from the employer, but exclusively in the reports for January and February 2023;
3. using the standard adjustment procedures, for each relevant period, and specifying the taxable income net of fringe benefits in cases where the preceding procedures cannot be applied.
The INPS specifies that the three options are mutually exclusive.
The following is a summary of the key points of the message addressed in this circular.
As is well known, Article 3, paragraph 10, subparagraph b), of Decree-Law No. 176/2022 (the so-called “Decr. Aiuti Quater”) provided, for the year 2022, for an increase in the exemption threshold to 3,000 euros “of the value of goods transferred and services that do not contribute to the formation of employment income as referred to in Article 51, paragraph 3, of the TUIR”, including among the so-called fringe benefits, again with reference to the year 2022, also “sums paid or reimbursed to employees for the payment of household utility bills for integrated water services, electricity, and natural gas”.
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