Workers affected by the 2021 temporary employment regulation dossier should keep several points in mind when filing their 2021 income tax returns, a campaign that began last April. Being paid by more than one source, mistakes in benefit payments, or the withholding applied can significantly influence the final tax result. Here are the essential considerations.
Why does the income statement differ for those impacted by ERTE?
ERTE-affected workers received a SEPE allowance, which meant having two payers in 2021 for tax purposes: the employer and SEPE. This situation mirrors other employees with multiple payers and differs from a single-payer scenario, but it remains within the same tax framework.
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What does it mean to have two payers?
The filing threshold depends on total income. With a single payer, a return is required only if income exceeds 22,000 euros, and submission is voluntary if below that amount.
When there are multiple payers, a return becomes mandatory if total income surpasses 14,000 euros and the combined withholdings from the second and subsequent payers do not reach 1,500 euros. This ensures the tax aligns with actual earnings and withholdings, since some payers may not be aware of other payments and withholdings.
Will the declaration outcome match that of other years?
The final amount depends on the level of withholding. Normally a single employer withholds on income, but with several payers, each party may withhold independently, which can lead to overwithholding or underwithholding. In such cases, adjustments may be needed in the IRPF declaration. For ERTE beneficiaries with smaller benefits, SEPE may not have withheld, creating potential tax obligations upon filing.
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What about deductions?
Family deductions for extended families, dependents, or those with disabilities or single parents are not affected by ERTE, as they link to Social Security registration or benefit collection. However, maternity benefits paid to qualifying women may be interrupted by an ERTE, which can affect eligibility conditions for those benefits.
What happens if there is an error in SEPE payments?
This is a major concern for many groups, and the Ombudsman has warned about cases where beneficiaries received higher ERTE amounts than others. If SEPE has wrongly claimed reimbursement and the amounts were refunded in 2021, the tax data should reflect actual income. If a refund was requested by the tax authority and received in 2022, the draft might lack corrections. In these cases the taxpayer should modify the draft to record actual amounts after deducting the refund. If no refund had been requested yet, the taxpayer must declare total income earned. When the refund is later issued, a correction request can recover any excess tax paid.
When is the income statement filed?
Tax changes for this group remain unchanged. Finance ministers have indicated that IRPF regulations will stay the same and that taxpayers will pay what is due based on their income, not on the number of payers.
What do experts recommend?
Experts advise reviewing all data before finalizing, especially amounts received from SEPE and any potential refunds. Ensuring accuracy helps prevent surprises later in the process. Attribution: Tax guidance officials and ombudsman advisory notes.