Why should I use a contractor payroll service?
When you’re going to work abroad or are already working abroad, you have to keep a lot of things in mind. Obtaining work permits, residence permits, and not only for yourself, but also potentially for the workers too. Payroll services allow you to effectively manage contractors, ensuring that they are always paid on time and with all the taxes of the new country taken into account.
Effective payroll management plays a vital role in addressing taxation regulations and immigration issues governing the independent contractors, freelancers and consultants. You’ll also find that most services will have a dedicated
customer service line should any problems arise.
Hiring an independent contractor, freelancer or consultant to do some quick contract work can be a valuable service for your business, but comes with its own set of problems. If you want to hire freelancers, contractor payroll services will save you a lot of hassle come tax time. Independent contractors in Italy are entirely responsible for paying their own taxes, which saves you money on benefits, insurance, and training.
What if I want to do payroll myself?
Large companies will often do
payroll in house as they have the resources to maintain a dedicated department, but for smaller companies and individuals who hire
contractors it is generally easier to delegate the job to a
contractor payroll service. This will save you time, frustration and, ultimately, leave you free to grow your business.
If, instead, you choose to do your own payroll processing for your employees, you’re responsible for filling out all of the tax paperwork for each individual contractor, as well as mailing them and keeping a detailed account of all transactions. However, a payroll service will do that for you.
They’ll also take care of preparing and sending monthly payslips, preparing the annual withholding tax statements (Certificazione Unica), making sure correct contributions are made to the social security system, and keeping detailed files for your contractors.
You and your clients will be able to focus on the job, or jobs, at hand, knowing that a payroll service will have you covered.
Check out our video about paying company’s taxes in Italy below or our video about tax residency in Europe.
About Post Author
After moving back to Italy from the United States in 2013, I realized how much an accounting and tax firm was needed to help expats living in Italy to comply with the local tax regulations.
My idea seeded when I had to go through the complicated Italian tax system myself, and that’s when I started Accounting Bolla. Its mission is very simple, yet utopian: to make Italian taxes easy and manageable.
At Accounting Bolla we aim to help our clients with straightforward solutions.
Since 2017 we can proudly claim to have helped thousands of clients in optimizing their taxes and in safely investing in Italy.
We help EU based ecommerce business selling in Italy. If you are confused about Italian VAT we’ll handle that.
Payroll services can be really time-saving for every business. Hiring a contractor will take the burden off you and it will save you any errors especially while filing takes and paying salaries. If you are a small business owner, hiring a contractor might be the best for you.