In Italy, withholding at source on construction subcontracting payments has been abolished: what replaced it is a check that suspends the payment rather than taking a share of it. A compliance document must cover the payment date, and the final balance waits for a certificate confirming that enough labour was declared. This application carries both checks and refuses a payment that ignores them.
Who the application is for
For Italian general contractors and construction subcontractors subject to the social security compliance check and, on the sites concerned, to the declared-labour adequacy check.
What the application does
- Carries each subcontractor's compliance document, with the date it was checked and how long it covers.
- Refuses a payment if no valid compliance document covers its date.
- Tolerates a gap judged not serious between contributions due and paid, up to a threshold set on your company, by contribution body.
- Spots the balance payment of a contract on its own and blocks it until a labour-adequacy certificate is issued.
- Lets instalments through, since they are never conditional on labour adequacy.
- Tracks, above an annual labour amount set on your company, the proof of paid wage withholdings supplied by the subcontractor.
Day to day
- Record the compliance document received for each subcontractor, dated to when the check was actually carried out.
- For a job subject to labour adequacy, enter the works category and the labour cost declared by the subcontractor.
- At payment time, let the application check compliance, and labour adequacy where relevant, before confirming the payment.
- If the payment is the contract's balance, obtain the adequacy certificate before confirming it.
- Above the annual labour threshold, keep the proof of paid withholdings supplied by the subcontractor, or their exemption certificate.
What the application does not do
- It withholds nothing from the payment: withholding at source has been abolished, and no setting can recreate one.
- It does not connect to any contribution body or tax authority: every document is entered with its own date and source.
- It does not decide whether a site's labour is predominant: that call is yours to make.
- It does not replace the advice of an Italian labour-law or tax professional: the thresholds and time limits do change, and must be checked with the competent body.
Getting started
Gather, for every subcontractor currently engaged, their up-to-date compliance document and the labour cost they declared on your Italian sites subject to labour adequacy, then set the thresholds your labour consultant gives you on your company record.
Going further
To find out whether this application suits your business and how to activate it, compare the plans or write to us.