Calculate your net pay from gross

Employee. From gross I subtract the INPS contributions you pay (9,19%, or 9,49% with the extraordinary wage guarantee fund, plus 1% on the part above 56.224 €, up to 122.295 €). On the rest I calculate IRPEF: 23% up to 28.000 €, 33% from 28.000 to 50.000 €, 43% above. I subtract the employee deduction (1.955 € up to 15.000 €, then decreasing to zero at 50.000 €, +65 € between 25.000 and 35.000 €) and, between 20.000 and 40.000 €, the additional tax wedge cut deduction (1.000 €, decreasing above 32.000 €). Below 20.000 € I add the tax-free tax wedge bonus (7,1%, 5,3% or 4,8% of income) and, up to 15.000 €, the supplementary payment of 1.200 € when it's due. I calculate the surtaxes on taxable income, only if IRPEF isn't zero.

Flat-rate VAT number. Takings × your business's coefficient = income. Contributions: Separate scheme 26,07% on income; Artisans and Traders pay a fixed minimum (4.521,36 € and 4.611,64 €) up to 18.808 € of income, then 24% or 24,48% on the excess (one point more above 56.224 €). Substitute tax 15% (or 5%) on income minus contributions. The limit to stay in the flat-rate scheme is 85.000 € of takings.

Thirteenth and fourteenth month's pay. The net is an “average” per monthly payment. On the payslip the thirteenth and fourteenth are a bit lower than a normal month, because they're taxed without deductions.

RAL. It's the “gross annual” figure written in the contract or job offer, thirteenth and fourteenth included. E.g. 28.000.

Monthly payments. 13 if you get the thirteenth (almost everyone), 14 if you also get the fourteenth (e.g. retail, tourism).

Surtaxes. The regional one depends on your Region and often on income: if you don't know it, leave 1,73%. You'll find your municipality's rate on the Finance Department's website.

Contributions at 9,49%. It happens in companies with the extraordinary wage guarantee fund. If unsure, leave empty.

Takings (flat-rate). The total of invoices collected in the year. There's no VAT in the flat-rate scheme. E.g. 2.500 € a month = 30.000.

Business. It sets the “coefficient”: the share of takings on which you pay taxes and contributions. Your ATECO code is what counts: if in doubt, ask your accountant.

Contributions. Separate scheme: professionals without a professional body with its own fund (e.g. consultants, designers, IT workers). Artisans and Traders: those registered with the Chamber of Commerce.

5% tax. It applies for the first 5 years if the business is truly new (in the previous 3 years you didn't have a VAT number and it's not the work you did as an employee).

Expenses. Rent, materials, software, accountant. In the flat-rate scheme they don't lower taxes, but they come out of your pocket: I subtract them from the net.

Dependent family members, other income, deductible expenses (medical, mortgage), performance bonuses and company welfare, apprenticeship contracts, people who work only part of the year, the bracket systems of individual Regions. For the flat-rate scheme: professional funds (e.g. lawyers, engineers), the 2 € stamp duty on invoices, and the fact that in the first year contributions are paid late (advances and balances). For incomes above 200.000 € some deductions are reduced: I don't use them here anyway.