Fringe Benefits 2023 – An In-Depth Look at Contributions to the Previr-Pastore Fund

News Flash No. 38/2023

Following further review and clarification, please be advised that the contribution paid to the entity Previr-Pastore as insurance premiums for non-work-related accident coverageare considered compensation in kind, not subject to social security contributions; therefore, the corresponding amount will count toward the total of exempt fringe benefits up to the threshold of €258.23, or up to the higher threshold of €3,000.00 established by law for 2023 exclusively for employees with dependent children.

Consequently, if the total amount of fringe benefits—including the contribution paid to Previr-Pastore—exceeds the exemption threshold, the entire amount will be taken into account for the purpose of determining the taxable amount, which will differ from the amount subject to contributions in cases where compensation in kind relates to insurance premiums not subject to social security contributions (premiums subject only to the solidarity contribution, such as the contribution paid to the Previr-Pastore fund).

During the adjustment phase, if the total amount of compensation in kind exceeds the applicable exemption limit, insurance premiums will be considered deductible expenses at a rate of 19% on a maximum amount of 530.00 euros, which increases to 750 euros for premiums covering death benefits for individuals with severe disabilities.

Would you like to learn more?

Sign up at studiopiceci.it to continue reading these exclusive posts.

Sign up now