How to Manage Payroll for a Business?

Content index

In what case can you be a payroll member under the law?
What is equal?
Disadvantages of being a payroll member
The 12 advantages of being a payroll member compared to a worker member who pays contributions to Internal Management Merchants
When do you have the greatest advantage of using the payroll sheet?

conclusions

Being a partner who lends their work within the S.r.l. means, unless they only perform the activity as an administrator, having the obligation to pay the Inps artisan or merchant contributions.

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Therefore, to work within the company, you must be registered (and pay contributions) to the Inps Merchant/Artisan Management.

Regarding the numbers, the obligation to register with the Inps merchants and artisans management entails the obligation to pay:

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Inps contributions of at least around 920 euros every 3 months, if the income from your business activity ranges from zero to a gross of around 15,500 euros;
In the case where the income attributable to you with your S.r.l. exceeds approximately 15,500 EUR, you will have to pay an additional 21% on the income exceeding this threshold.

It is important to know that:

You will have to pay Inps contributions on the excess income of 15,500€ even if your S.r.l. does NOT distribute the income.
You will have to pay Inps contributions by adding all the income attributable to your pro quota of your S.r.l.

Thus, the contribution burden for the member, as you can note, could be significant.

But, in addition to paying contributions to the merchant management, in the case where you were a non-administrator working partner, you have at your disposal another alternative solution that could be advantageous for you compared to paying the Inps contributions of the merchant management.

The alternative is to be able to have employees work in the S.r.l. with an employee payroll sheet, but this is only under a specific and specific condition.

In what case can you be a payroll member under the law?

This is because it has been established by Inps: if the S.r.l. member does not manage their work independently, but is subject to hetero-management (by the Board of Directors) in compliance with the established hours, justified absences, disciplinary sanctions, their work can be framed as employee work.

Furthermore, in my opinion, to have an additional element of proof in your favor in case of dispute, I recommend that you have a share of less than 49% in the S.r.l. or, in any case, that you do not have factual control of the assembly.

In this way, you could not have the chance to choose the components of the administrative body and, therefore, you will further prove that you are subject to the direction of other people.

Also pay attention to the fact that certain types of activities involve the obligation to have majority members and administrators who are actually workers, in order to have permission to carry out commercial activities.

That is why, as in all arguments of tax discipline, the optimal is to have a general idea of the rules (and on the exceptions), then contact your consultant for more clarity, contact us at the details indicated on the site or at the end of the circular for free advice ([email protected])!

In order to analyze the advantages between being a member who works without payroll and a payroll member, it is first important to identify what is equal.

Then, I know that I analyze the disadvantages, then the advantages.

What is equal?

You must pay contributions equally, both in the case of a participant working with Inps and in the case of a participant working with a payroll, even if they have different rates and taxes. It follows that in case of injury, you will receive compensation;
In case of inspection, you have the right to be present in the company;
You can request mileage reimbursement and analytical (flat rate), of course for business activities;
You pay Inps with different rates, taxes, and mechanisms.

A thoughtful decision, however, can only be made after analyzing the negative aspects.

Disadvantages of being a payroll member

The first element to consider is the amount of contributions you would pay.

The contributions you would pay on the salary remuneration, between those payable by the company and those payable by employees, amount to about 40% (or a little less).

This is a higher rate than the Inps contribution rate of the merchants’ management.

Another important condition is that: to be a member with a payroll, you cannot be a sole administrator, as a sole administrator, in fact, manages the company, and cannot be subject to the decisions of a legal entity.

The performance of the company will have to be one of the pivotal points for making this choice, since your salary remuneration would be “fixed” even in the case of negative economic developments.

This means that you must pay contributions even if your company is in deficit.

Last but not least!

Remember that you will have to work within your company according to the number of hours required by the contract, up to a maximum of 40 hours per week, and you will have to be subject to the direction and coordination of companies.

The 12 advantages of being a payroll working partner compared to being a worker member paying contributions to Inps Merchant Management

The advantages mainly arise from the fact that, within the payroll standard, there are certain tax benefits that the State recognizes to employees, and that, therefore, given that the deputy receives remuneration with a payroll sheet, they can benefit from it.

Below, I share the main advantages you can have if you are a working partner and decide to use a payroll:

Renzi Bonus on your payroll . You can benefit from an additional 80 euros per month thanks to the Renzi bonus. In a year, that’s nearly 1,000 euros. Note that you can only benefit from the Renzi bonus if your total income falls within the range of 8,000 euros — 24,000 euros, the value of what is recognized will go to cancel up to a maximum of 26,000 EUR of total gross income;
You can take advantage of the permits paid by Inps, such as: a) Law of February 5, 1992, no. 104, better known as law 104/92, is the legislative reference “for the assistance, social integration, and rights of disabled persons.” Essentially, this permission recognizes family members, who can be absent from work for 3 days per month with a subsidy paid by Inps and reimbursed to the worker’s company. What you could not have in the case of a working partner.b) Breastfeeding : during the first year of the child’s life, mothers (and, in some cases, fathers) can require their employer to dedicate a few hours of rest per day to care for their child. These hours of rest are known as breastfeeding permits;
Paid sick leave by Inps : in case of illness, Inps, according to certain rules and conditions, would pay part of the days the worker stays home. Attention: Do not expect Inps to pay 100%, but you would surely have something more than in the case of a member working at INPS who would receive no compensation in case of illness of the partner;
NO Inps merchant contributions fixed at a minimum of €3,700 per year : in the case where you worked in your company with a payroll, you would avoid paying merchant contributions. Attention: you can work in the company during the hours provided by the employment contract, up to a maximum of 40 hours per week;
NO Inps merchant contributions exceeding the minimum income of 15,500 EUR : you do not have to pay 21% of Inps contributions that exceed the income attributable to you above 15,500 euros;
Meal vouchers : meal vouchers are coupons that can be delivered to employees so that they are tax-free and exempt from taxes for them. Meal vouchers can have the following values: — 5.29€ for paper vouchers; — 7.00€ for electronic vouchers. Meal vouchers can be used to shop at any approved catering business (e.g., bar or supermarket) and the company can deduct the total amount of the voucher;
Liberal disbursements : The T.U. at art. 51, c. 2, Lt. b, states that liberal disbursements refer to any goods or services, whether produced, purchased by the company, and sold free of charge to employees. These are all those allowances that are also called transfers in “kind” or “fringe benefits.” If the liberal disbursements do NOT exceed 258.23€ per fiscal year, they are completely exempt from taxes and contributions. In summary, this means that you can give the employee goods and services up to an annual amount of 258.23€ so that for you they are a deductible cost for your company and the employee is “money” placed in the payroll without paying Irpef or contributions;
Flat rate reimbursement : In general, when a transfer of an employee is planned for technical and organizational needs outside the ordinary when the head office of the company is moved, you can establish a flat rate reimbursement that the employee receives for making the transfer. For this reimbursement, however, there are tax limits, exceeded, which, the excess amounts are subject to IRPEF tax. In fact, if the flat rate reimbursement remains within a daily minimum of 46.48 euros for domestic transfers and 77.47 euros for foreign transfers, these are completely exempt from taxes and contributions for the employee and fully deductible for the company;
Family allowances: Family allowances are a social benefit in favor of employees. The amount of the allowance increases with the increase in the number of dependent family members and decreases as the family income increases. Note: to receive family allowances, the household must consist of 70% of subjects producing income as dependent work (an additional benefit in the perception of the remuneration of the member who works with the payroll);
Deduction for dependents: In addition to family allowances, whenever you have a child or a dependent spouse, you benefit from an additional bonus consisting of a deduction from the Irpef tax. Essentially, the more dependent children you have, including the possible spouse, the less tax you have to pay. Why did I want to mention this bonus in the case of a member without a payroll? Since the possible distribution of profits of the S.r.l. provides a tax rate as a substitute tax of 26%, you can no longer benefit from the bonus on dependent family members. Only in the case where you receive a payroll allowance, you have the opportunity to receive expenses with a lower taxation because you can take advantage of the bonuses for dependent family members;
Optional maternity : after a mandatory maternity of 5 months, the mother has the right to stay home as additional optional maternity with a reimbursement from Inps of 30% of the payroll (mandatory maternity is also provided for the Inps member).
Cost of the working member present in the income statement (and not just figurative) : An important aspect that I want to emphasize, the advantage of having the cost of the employee worker on the budget, is that it would no longer be a “figurative” cost and thus appears more easily in accounting to make better strategic choices; let me explain better. If you only pay the Inps Merchant contributions, the cost of your labor would not visually affect the costs of your company, as there would be no personnel cost item for the work you perform in your s.r.l.

The fact that you can account for the cost of members would allow administrators to have advantages in running the business, as it provides them with a greater understanding, then helping them in the following ways:

a) You know if the company is producing a real profit, also considering the actual working hours of the partners;
b) If you quantify the work done by the members, the administrator can easily delegate and make the company more automatic. When they can plan to leave your job to another employee and quantify the surplus generated by your company. Now that you know the advantages and disadvantages, you need to know how much you have to use the payroll to reimburse your work as a working partner.

When do you have the greatest advantage of using the payroll?

When you are a member and are subject to the management and coordination of the administrative body of your S.r.l. (otherwise, you must register with the merchants’ management);
When you work a few hours in the company, because you do not have to pay fixed quarterly Inps contributions, but only pay them for the few hours you work in the company;
How much your S.r.l. must declare a high income, while you would not pay 21% of contributions on income exceeding the minimum;
When you work in a company where you have to make many transfers, as you can benefit from the flat rate reimbursement.

conclusions

Remember that the fundamental principle, to be a working partner of the S.r.l. with a payroll is that: If the S.r.l. member does not manage their work independently, but is subject, for example, to compliance with established hours, justification of absences, disciplinary sanctions, their work is framed as employee work.

That, in case of inspection and dispute, you must be able to justify.

For this reason, if you need counseling, you can contact me.

In all cases where you have a company, know that if you really want to sleep soundly, protect your personal assets, protect your business investment, protect your family and your future, the best solution lies in using an S.r.l.

But that’s not enough.

In fact, you must also check: produce profits abundantly, always have the necessary liquidity to keep the business running regularly, and use as many tax planning tools as possible in your business to reduce the taxes of the S.r.l.

Be careful, however, because by incorrectly managing an S.r.l., you risk paying more than 70% in taxes and contributions (as much as a sole proprietorship, but only with the S.r.l., you can reduce the overall tax burden).

While, on the other hand, with effective tax management of the S.r.l., taxes can be reduced to as low as 28%.

Between a 70% tax burden and 28%, there are various tax planning tools you can use in your S.r.l. to reduce taxes and contributions as much as possible.

The more you apply specific tax-saving tools for the S.r.l., the more you can reduce taxes and contributions approaching 28%.

Specific tax-saving tools for the S.r.l. that you will find by downloading the manual you will receive by filling out the form below.

Whenever you decide to use an S.r.l. for your business activity, remember that you can access the Controlled Accounting Service.

By following the Controlled Accounting procedure, you can make your S.r.l. a machine that constantly generates more money than you spend, each year more and more.

Every 12 months, you will have an S.r.l. with more utility than before, with more money in the bank than before and the possibility of cutting the company’s tax burden from 70% to 28%.

All this thanks to the application of tax efficiency principles and the monthly control of the balance sheet of the controlled accounting in your S.r.l.

In this way, you create more and more wealth for yourself and achieve all the success you deserve with the people you love.

If you cannot apply the controlled accounting procedure with your accountant, do not worry.

Alternatively, you can email me directly at [email protected], with the subject line “Controlled Accounting” and request more information.

Instead, to receive other free Tax Efficiency tools that allow you to reduce the taxes of your S.r.l., simply fill out the form below, entering your best email.

You will receive a manual that includes a detailed list of the main tools you can use with your S.r.l. to reduce the tax burden from 70% to 28%.

Do you want to open an S.r.l. and want more information?

You can choose one of the 2 available channels:

1) enter your best email in the form below. This will allow you to receive an email with a link that will allow you to download the free manual with 94 tax-saving tools you can use with your S.r.l.

After reading the manual you download, you can request free advice to understand if you can access a free month of Accounting for your S.r.l. (or the future S.r.l.).

2) or you can purchase the book “How to Reduce S.r.l. Taxes” that you can find by clicking on this link http://bit.ly/2mpvMva. Obtaining the book from this link will allow you, if you wish, to purchase a consultation with me at a reduced price (197€ VAT, instead of 497€ VAT).

Moreover, by purchasing the book from this link, you can receive my personal quarterly newsletter for free at your home (or office), for good.