Contractor Payroll services: how do they work and what you should know
Why should I use a contractor payroll service?
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?
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.
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.