Employee award
- Studio Piceci
- April 15, 2020
- Reading time: 6 min
For employees who have worked at the company's workplace, Article 63 of Decree Law 18/2020 (Cura Italia Decree) establishes a one-off bonus of €100.00 net in the paycheck, which is paid starting from the April salary and in any case within the deadline for year-end adjustments, and is proportional to the days actually worked at the company's premises. The bonus is intended for employees who have continued to work safely in compliance with health and behavioral regulations at their place of work.
Scope of application of the €100 net bonus
The bonus is payable to employees whose income is covered by Article 49, paragraph 1 of the Italian Tax Code (Tuir): "Employment income is income deriving from relationships involving the provision of labor, in any capacity, as an employee and under the direction of others, including work from home when it is considered employment according to labor legislation." Therefore, it applies to all types of employees, regardless of their qualifications, whether they are permanent or temporary, full-time or part-time (horizontal and/or vertical).
Consequently, the bonus is not payable to trainees, interns, coordinated and continuous collaborators, or VAT number holders.
For domestic workers (caregivers and domestic helpers), since the employer is not a withholding agent, the bonus cannot be paid in the paycheck.
Constraints to be respected
The only requirement that must be met is that the total income from employment in the previous year must not exceed €40,000.
The reference is the total income for IRPEF purposes for the previous year, i.e., the 2019 tax year. The income would be that declared in the 2020 730 form, which, however, has not yet been submitted or completed by taxpayers; therefore, the amounts indicated in fields "1" and/or "2" of the tax data on page 1 of the Single Certification will be taken into consideration.
The Tax Authorities clarify that "only income from employment subject to progressive IRPEF taxation should be considered, and not income subject to separate taxation or substitute tax," in line with Revenue News no. 28/E of June 15, 2016.
Workers who had multiple employment relationships with different employers in 2019 (for example, because they had multiple part-time jobs) and who continue to have multiple jobs in 2020 must choose which employer they want to receive the bonus from, and they must declare their total income from employment subject to progressive IRPEF taxation for the year 2019 to that employer.
Workers who had multiple employment relationships in 2019, if they did not ask their current employer to adjust their income in their December paycheck, must notify their employer of their total income from employment in 2019.
Workers who were hired during 2020 and were employed in March 2020 must inform their employer of their income from employment in 2019.
Communications may be made by means of a "Declaration in lieu of affidavit" (pursuant to Article 47 of Presidential Decree No. 445 of December 28, 2000) (a standard form is attached).
For workers dismissed within the month in which the bonus is paid, the bonus is due for the days worked at the workplace in March 2020. In the case of persons who resigned or whose employment relationship ended in March, the bonus is due only for the days worked at the workplace and will be included in the April paycheck or, in any case, within the deadline for calculating the final entitlements.
Nature of the prize 100 Euro