A company that wants to introduce a welfare plan for its workers is faced with the choice on sources of funding. In particular, you may decide to finance a plan by choosing from one of the following modes:
DIRECT OR ON-TOP FINANCE:
An investment of the company that grants additional sums (so-called “on-top”) compared to ordinary pay and any other premiums. It consists of the establishment of a social award which is provided only in welfare services, possibly providing criteria for dispensing or quantifying the premium related to corporate and/or individual performance. Again, the premium can be paid to the entire company population or to one or more homogeneous categories of employees.
Such a funded Welfare Plan can be:
- Unregulated (pure liberality);
- Regulation formally validated by the board by the company (unilateral)
- Expected by company or territorial contract (bilateral)
Only the commitment expressed by the company through a signed regulation (2.) or a contract (3.) allows the use of both the former services. Art. 51 of both the services mentioned in Article 100 of the T.U.I.R. 5 per 1000 of staff expenses. Otherwise (1.), the above deductibility limit for ex services is applicable. Art. 100.
This is the conversion of the Production Award (or Result) or the Enterprise Earnings Participation Award in welfare services, within the limits and according to the constraints provided by the Stability Law 2016, subsequently updated by the Stability Act 2017. The award is expressed by a bilateral report (union agreement) or formalised through second-level bargaining with trade union representatives. The way in which the award is paid and converted is defined between the parties (the choice relating to the share of the premium to be received in welfare, within the limits of the law, is typically left to the employee). The contracting of the prize allows to activate, in addition to the Services Art. 51, also the use of the services indicated in Article 100 of the T.U.I.R., which are not subject to the deductibility limit of 5 per 1000 of staff expenditure; In addition, with such a funded plan, the sums paid for supplementary pension forms and supplementary health care do not contribute to the statutory deductible limits for these services.
When the conditions provided by the Law occur, in the event of the disbursement of monetary sums, the Stability Act provides for the application of a replacement tax of the IRPEF of a rate of 10%. The contribution charges remain in the hands of the company and the employee for their shares of competence (about 28% and 9% respectively), making the welfare choice relatively more cost-effective than the monetary provision.
SMEs registered with Confindustria have the opportunity to structure taxable PDR (and therefore convertible to welfare within the limits of Law 208/2015) in the absence of RSU under the Agreement signed at national level on 14 July 2016 CGIL CISL UIL and Confindustria.