INFOFLASH PAYROLL N. 1 MARCH 2021

by Arianna De Carlo | Mar 4, 2021 | infoflash

THE “MILLEPROROGHE 2021” LAW HAS BEEN CONVERTED INTO LAW: NEW FEATURES FOR EMPLOYERS

 

References: Law no. 21 of 26 February 2021

In summary: Law no. 21 of 26 February 2021 was published in the Official Gazette no. 51 of 1 March 2021, converting, with amendments, Decree Law no. 183 of 31 December 2020 (the so-called “Decreto Milleproroghe”), containing, among other things, relevant news for employers. In this regard, it should be noted the extension until 30 April 2021 of the simplified procedure for making notifications of agile working (smart working) and the possibility for private employers to make use of this method of carrying out work for each employment relationship even in the absence of individual agreements. In addition, an amnesty is granted for applications for wage subsidies due to COVID-19 and Modd. SR41 for the payment of the related treatments that were not sent within the time limits expired by 31 December 2020. Lastly, there is an increase from eight to ten instalments for the repayment of the additional tax deduction not due as a result of the year-end adjustments. Law no. 21/2021 has been in force since 2 March 2021.

In the Official Gazette no. 51 of 1 March 2021, Law no. 21 of 26 February 2021 was published, converting, with amendments, Decree Law no. 183 of 31 December 2020 (the so-called “Decreto Milleproroghe” – see Update AP no. 004/2021) containing, among other things, relevant news for employers.

In this regard, we note the extension until 30 April 2021 of the simplified procedure for making notifications of agile working (smart working) and of the possibility for private employers to use this method of carrying out work for each employment relationship even in the absence of individual agreements. In addition, an amnesty is granted for applications for wage subsidies due to COVID-19 and Modd. SR41 for the payment of the related treatments that were not sent within the time limits expired by 31 December 2020. Lastly, there is an increase from eight to ten instalments for the repayment of the additional tax deduction not due as a result of the year-end adjustments.

Law no. 21/2021 has been in force since 2 March 2021.

An analysis of the provisions of interest to employers/tax substitutes is provided below.

 

SUSPENSION OF THE LIMITATION PERIOD FOR CONTRIBUTIONS (ARTICLE 11, PARAGRAPH 9)

As you know, the statute of limitations for social security contributions is governed by Article 3(9) of Law no. 335/1995 which, as of 1 January 1996, unified the statute of limitations for all social security contributions into five years.

NB. Following the conversion into law of Law Decree no. 183/2020, article 11, paragraph 9 was confirmed, which provides for the suspension, from 31 December 2020 (the date on which the decree came into force) until 30 June 2021, of the aforementioned five-year limitation period. The statute of limitations will start to run again at the end of the suspension period. The legislator specifies that if the period of limitation begins during the period of suspension (31 December 2020 – 30 June 2021), it will begin on 1 July 2021.

It should be noted that, in relation to pension contributions, the reduction of the ten-year period to five years does not apply, even after 1 January 1996, if the employee (or his survivors) reports the employer’s failure to insure him. In that case, the limitation period remains ten years.

 

APPLICATIONS FOR WAGE SUBSIDIES COVID-19 AND MODD. SR41: AMNESTY 2020 (ART. 11, PARAGRAPHS 10-BIS, 10-TER)

During the year 2020, there have been several cases of companies submitting applications for wage subsidies due to COVID-19 and Modd. SR41 for the payment of the related treatments, after the deadlines. In order to remedy these situations and allow the payment of benefits to workers without the burden falling on the companies, it was decided to postpone until 31 March 2021 the deadlines for sending applications and Forms SR41 expired by 31 December. SR41 expired by 31 December 2020.

NEW: In particular, at the time of conversion into law of Law Decree no. 183/2020, article 11, paragraph 10-bis was introduced, postponing to 31 March 2021 the deadlines for

  • the sending of applications for access to wage supplementation treatments with COVID-19 cause,
  • the transmission of the data necessary for the payment of benefits (Form SR41), which are due by 31 December 2020.

NB. The amnesty will concern, therefore, applications for wage subsidies due to COVID-19 and Modd. SR41 forms for the payment of the relevant treatments whose expiry date has expired by 31 December 2020. This implies that any applications and Forms SR41 relating to weeks of wage subsidies due to COVID-19 will not be accepted. SR41 relating to weeks of wage subsidies for the month of December 2020, whose deadlines had expired by 31 January 2021, cannot be included in the scope of the amnesty provided by the “Milleproroghe” Decree.

 

NETWORK CONTRACT WITH SOLIDARITY REASON (ARTICLE 12, PARAGRAPH 1)

The Decree-Law no. 34/2020, in Article 43-bis introduced at the time of conversion into law, had provided, for the year 2020, the possibility for companies to enter into network contracts, in order to facilitate the maintenance of employment levels of companies in sectors affected by economic crises, resulting from situations of crisis or state of emergency (see AP Update no. 422/2020).

NB. Following the conversion into law of Decree-Law No. 183/2020, the possibility (in the presence of the prerequisites and conditions required by law) to enter into network contracts with solidarity reasons, previously allowed until 31 December 2020, is extended for the year 2021, in order to favour the maintenance of employment levels of companies in supply chains affected by economic crises as a result of crisis situations or states of emergency declared by measures of the competent authorities.

 

EXTENSION OF DEADLINES RELATED TO THE STATE OF EMERGENCY (ART. 19)

NB. The conversion into law of Law Decree no. 183/2020 confirms the extension of the terms related to the state of epidemiological emergency from COVID-19 until the date of the end of the state of emergency and, in any case, no later than 30 April 2021.

Of particular interest for employers is the extension of the simplified procedure for making notifications of agile working (smart working) and of the possibility for private employers to use this method of carrying out work for every employment relationship even in the absence of the individual agreements provided for by Law No. 81/2017.

In addition, the provisions set out in:

  • Article 16(1) and (2) of Decree-Law No 18/2020, according to which commercially available surgical masks are considered personal protective equipment (PPE) for all workers and volunteers, both medical and non-medical, as well as for domestic and family service workers who are unable to maintain a safety distance of at least one metre when carrying out their activities;
  • Article 83 of Decree-Law No. 34/2020, on exceptional health surveillance (see AP Update No. 422/2020). This article requires, in particular, employers (public and private) to ensure exceptional health surveillance of so-called “fragile” workers.

 

EXTENSION OF DEADLINES IN TAX MATTERS (ART. 22-bis)

The law converting Decree-Law no. 183/2020 also intervenes in relation to the deadlines for the assessment, collection, fulfilment and payment of taxes, as set forth in articles 152 and 157 of Decree-Law no. 34/2020 (Decreto Rilancio), as well as in article 68 of Decree-Law no. 18/2020. The aforementioned deadlines have been amended by Article 1 of Decree-Law no. 7/2021 (see AP Update no. 075/2021).

NB. This concerns, purely by way of indication and not in any way exhaustive, the postponement from 31 January 2021 to 28 February 2021 of the expiry of the suspension of the obligation to set aside provisions deriving from garnishments from third parties carried out by the collection agent and other entitled parties, concerning sums due by way of salary/salary.

NEW: Now, Article 22-bis, introduced during the conversion into law of Decree-Law no. 183/2020, incorporates and confirms the aforementioned deadlines as amended by Decree-Law no. 7/2021.

 

FURTHER TAX DEDUCTION (ART. 22-sexies)

The conversion into law of Law Decree no. 183/2020 introduced article 22-sexies which rewrites article 2 of Law Decree no. 3/2020 concerning the additional tax deduction. In fact, the amendments made in this respect by Law no. 178/2020 (Budget Law 2021) and by the subsequent Decree-Law no. 182/2020 (see AP Update no. 003/2020) have been implemented.

Specifically:

  • paragraph 1, article 2 of DL no. 3/2020 governs the additional tax deduction recognised during the second half of 2020;
  • Paragraph 2, Article 2 of Decree-Law No 3/2020 regulates the additional tax deduction available starting from the 2021 tax year.

With specific regard to the end-of-year adjustments, the legislator has provided that any amount of additional tax deduction not previously recognised, if exceeding €60, shall be withheld from the employee and returned to the Treasury in instalments starting from the salary that bears the effects of the adjustment.

NEW: Article 22-sexies of the law converting Decree-Law no. 183/2020 amends paragraph 3, Article 2 of Decree-Law no. 3/2020, establishing that the additional deduction is to be paid back in ten instalments instead of eight as previously provided for.

NB. The repayment of the additional deduction not due is made in ten instalments not only with reference to the additional deduction relating to the tax year 2021 (and subsequent years) but also with reference to the additional deduction relating to the tax year 2020 for which the instalment payment is already in progress (starting from the year-end 2020 adjustments). This implies the need for tax withholding agents to recalculate the number of remaining instalments and their amount.

 

 

LDP Payroll stays at your disposal for any further information.

Arianna De Carlo

Head of Payroll Department                                                                                                   

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