Social Security Adjustments and Fringe Benefits for 2022

News No. 54/2022

Subject: Instructions for the social security adjustment of fringe benefits provided under the corporate welfare measures adopted by the “Aiuti bis” and “Aiuti quater” decrees.

With Message No. 4616/2022 , 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 explains the three ways in which you can claim a refund of the contributions you have paid.

Specifically, it will be possible 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 bidirectional 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 covering 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 section outlines the key points of the message that is the subject of 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 rendered that do not contribute to the formation of employment income as referred to in Article 51, paragraph 3, of the TUIR”, and—again with reference to the year 2022—includes among the so-called fringe benefits “amounts paid or reimbursed to employees for the payment of household utility bills for water, electricity, and natural gas.”

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