Compensation of the employee net of personal income tax and additional taxes: which items to consider to obtain the amount.
The Single Certification, or Cu, is the document that replaced the old Cud: it is the document with which the withholding agent, like the employer, certifies to his substitute, as the employee, the income paid from work and the withholdings made in a given year. The Cu is part of the withholding tax return, made up of form Cu and form 770. But how is the net income from the Single Certification calculated?
The data contained in the certification, to be precise, concern the income paid during the year, the relative withholdings made, the deductions made, the social security and welfare data relating to the contributions paid or due, as well as the amount of social security and welfare contributions payable. of the worker paid or due to the social security institution (as a rule, to INPS).
To understand how to derive the net income from the 2022 Single Certification (year 2020), let’s start from the analysis of some rather simple practical cases, relating to employees to whom only the salary due has been paid by the employer, without bonuses or refunds. On salary, the withholdings relating to personal income tax, the regional and municipal surcharge were applied. Furthermore, in relation to 2020, it is important to underline that workers were paid, for the first 6 months of the year, the so-called Bonus Renzi and, for the further semester, the supplementary remuneration, the latter in full measure
We also remind you that, for 2021, holders of employment and similar income, whose total amount does not exceed 28 thousand euros per year and with a gross tax higher than the work deductions due to them, are granted a supplementary treatment equal to 1,200 euros per year starting from the year 2021. If the income is greater than 28,000 euros but less than 40,000 euros, the additional deduction is instead due (also recognized in 2020, but only for the second half of the year)  .
In the hypotheses examined, workers are also granted the ordinary deduction for salaries from employees.
What income is indicated in the single Certification?
In the Single Certification , not only the income from employment is indicated , but also:
- income similar to that of employees;
- income from self-employment;
- commissions relating to commission, agency, mediation, trade representation and business procurement relationships;
- the fees owed by the condominium to the contractor for services relating to contracts for works or services;
- the fees due to occasional collectors;
- the income paid by the State Administrations;
- sums paid following third party attachment procedures;
- the sums paid as compensation for expropriation;
- other indemnities and interest;
- the fees deriving from short lease contracts
What income must be considered in the single certification?
In the Single Certification there are numerous items that indicate the income received, but what is the one to consider to calculate the net income ?
There is no item corresponding to income net of taxation, or rather of personal income tax and additional taxes: the employee, relating to the case in question, must first of all consider point 1 of the “Tax data” section of the CU if he is hired indefinite period, point 2 if hired on a fixed-term basis.
These items are already net of social security contributions and deductible charges (the gross income, or more precisely the taxable social security income, is found in the section of the CU “social security data”).
What information can be found in the Tax data section of the Single Certification?
In the ” Tax data ” section of the CU, the following must be certified:
- sums and values subject to ordinary taxation ;
- remuneration subject to withholding tax;
- remuneration subject to substitute tax;
- remuneration subject to separate taxation (such as arrears of previous years);
- the charges taken into account;
- the other data necessary for the purposes of the eventual presentation of the tax return (for example the days for which the deductions from employment are valid).
Point 21 of the Cu indicates the withholding personal income tax , while the amounts withheld as a regional and municipal surcharge are found in points 22 to 29 (for simplicity, we do not take into consideration the hypotheses of suspended withholdings and tax assistance, as well as further special cases).
How is the personal income tax withheld in the single certification calculated?
The withheld personal income tax is calculated by subtracting from the gross tax , point 361 of Cu 2021, any deductions due, points from 362 to 369 (the further deduction is indicated in point 368).
The total deductions are indicated in point 374 and the net tax is calculated in point 375.
The taxpayer may also be entitled to deductions and credits for rental fees, additional tax credits, the Irpef bonus credit (until June 2020) and the new supplementary treatment .
How is the net income calculated in the Single Certification?
Finally, to calculate the net income in the CU , it is necessary to subtract the personal income tax and the additional deductions from the taxable income, indicated in point 1 or 2 of the “tax data” section.
The worker has produced a taxable income, indicated in point 1 of the “tax data” section, of 21 thousand euros. Since he has produced other income during the year that cannot be matched by the employer, he has asked not to benefit from the personal income tax bonus or the supplementary treatment. The total personal income tax and additional withholdings, indicated in points 21 to 29, is equal to 3,500 euros. The result is 17,500 euros of net annual income in the single Certification. The actual net income, however, can only be known upon presentation of the tax return, as it has not been adjusted by the employer.
Naturally, the examples indicated relate to the simplest cases: the compilation of the Single Certification , in practice, can be remarkably complex, considering the innumerable types of income, indemnities and credits that can be paid, of withholdings that can be applied, as well as the further data of which the indication may be requested.