The single labor book (LUL): example of drafting
The Single Labor Book (LUL), or more commonly called a payroll, has multiple peculiarities in its preparation and compilation.
For most companies, filling out the payroll is a nightmare for anyone working in the human resources department. In fact, every employee will have a paycheck based on the sector in which he or she works, age, job title, family status, with reference to each applied collective bargaining agreement.
What are the reasons that give such importance to this document? An employee's salary or the disbursement of compensation to one of the company's managers must be accounted for through the Single Labor Book, which is essential for issuing a payroll and thus paying wages to an employee.
The Single Labor Book has different compilation methods, in particular for the construction sector, the maritime sector and the trucking sector there are special features that I will analyze in dedicated articles. This article is intended to illustrate what are the basic and minimum elements required by law.
Given all the difficulties you may encounter in its compilation, in this article we offer an example of drafting the single labor book, namely:
- what are the characteristics of this document?
- what are the essential elements?
- what are the methods of drafting it?
You will find all the answers if you continue reading.
The single labor book (lul): definition
The Single Labor Book, or LUL, is a new document established by law as of 2008 to replace the old payroll and register books. Compared to payroll and register books, this document additionally contains the attendance records of a company's employees. The Single Labor Book is mandatory and must always be kept up-to-date. All employers who have a company with subordin ate or parasubordinate employees must dedicate themselves to the preparation of the Single Labor Book. The only exception is domestic employers.
The employer of a company may delegate the preparation of the single labor book to an employment consultant.
As we have mentioned, the real difference from the old pay slip is the addition of the timesheet, which must be included within the LUL in a precise and detailed manner. In the pay slip, the timesheet represents a separate document.
What is the functionality of the single labor book?
The single labor book performs the function of accounting for the employment status of a company through the preparation of an employment report on each employee working for the company. Through the single labor book, the employer can record the actuality of each employment relationship between the employee and the employer.
Who is required to keep a single labor book?
The employer of a company is required to have only one single labor book, even when multiple positions occur. Among the entities that are obliged to keep a single labor book are:
- agricultural companies
- companies in the entertainment industry
- companies in the trucking industry
- maritime companies
- in general all companies that register employees or contractors as assets.
Who are the entities that do not need to keep a single labor book?
- domestic employers
- public administrations
- employers who individually manage a craft company
- cooperative enterprises
- any partnership or corporation that has in its membership only members and not employees who are subordinate workers
- family-owned companies that have family members (spouse, children or other relatives or kindred) as employees.
How to prepare the single labor book?
Three different processing methods can be used to prepare the single labor book:
- mechanized processing and printing on movable sheets in a continuous cycle. With this method, each page must be numbered and stamped, prior to the application of Inail;
- laser printing approved by Inail's prior authorization. This method involves the generation of automatic numbering. To facilitate the procedure, the possibility of having prior authorization issued directly by the software houses has been established. This method is the most widely used;
- magnetic media. In this case, each individual entry creates a computer document and is associated with the entries made previously. If automatic data processing is used, the records are searchable at all times and the integrity and inalterability of the data is preserved along with the chronological consequentiality of the activities performed.
However, no precise template has been established that allows for the preparation of payroll. It must, however, be kept in mind that the payroll must contain a list of mandatory information.
The essential information to be included in the payroll.
Usually, when drafting the LUL, three different areas must be considered:
- Company and employee biographical data (indicated by number "1" in the example schedule);
- Vidimation, insurance position and company branch (indicated by number "2");
- Wage and social security elements (indicated by number "3").
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Company Details.
In this section that deals with company details, information about the employer or the payroll provider is the first to be entered.
The other information to be entered is as follows:
- the identification code, i.e., the tax code or VAT number of the company;
- the Inps pat, i.e., the position number conferred by the company's parent institution;
- the pat Inail, that is, the number conferred by the insurance institution according to the working department to which the employee works within the company. This insurance contract is drawn up by paying attention to possible accidents at work. The opening of the file for the INAIL position must be carried out before the start of professional activity. If this rule is not complied with, the company will face a fine directly addressed to the management office.
Employee biographical information
In this area, you must indicate the employee's personal details and his or her master data related by the generalities of the employment relationship entered into between the employee and the company.
The pay slip must be submitted for endorsement and inseguito must submit the authorization details granted by Inail. In addition to this information, it is necessary to add:
- the date of hiring and termination of employment;
- the reference information of the employment relationship, i.e. the type of contract (fixed-term, indefinite, apprenticeship, etc.), the qualification or degrees, level of classification according to the guidelines of the applied CCNL and finally the percentage of Part-Time, if this option is chosen;
- with regard to pay, the accrued seniority steps and the date of the next pay step will be calculated according to the type of employee.
Salary and benefit elements.
Based on the amount of time and work recorded on the timesheet, and although it is not necessary to mark them in that order on the payroll statement, pay is divided into three macro areas:
- payroll area. In this section, the following should be mentioned:
- directors' compensation,
- employee and assimilated income established on an hourly or monthly basis,
- surcharges for additional work,
- overtime work,
- any thirteenth or fourteenth pay if paid on a monthly basis,
- the remuneration of Holidays, Leave and Public Holidays
- Family Allowance and deductions for any reason made.
In this area, accrued severance pay must also be considered, although it is subject to separate taxation, and Transfer Allowances or additional reimbursements and expenses taxed according to threshold limits;
- social security area. The Collective Bargaining Agreement applied guarantees pension provision by insurance entities. Thanks to these entities, the number of contributions for compulsory social security is calculated;
- fiscal area. In this section, the Irpef taxation of employee and assimilated income established in accordance with:
- Articles 49, 50, 51 and 52 of the T.U.I.R,
- the estimated additional taxes
- any tax adjustments.
- 730 refunds made by the employer as Tax Substitute. In the pay slip, garnishments and disbursement of Fringe Benefits are reportable items.
How to keep and maintain the single labor book?
The company must endorse and number the single labor book uniquely, sequentially and continuously. To ensure the inalterability and integrity of the data and ensure the chronological sequence of activities, the single labor book must have no alterations or missing numbering.
Licensed professionals must receive permission from INAIL to approve the labor consultant's authorization for endorsement.
The single book is completed for each reference month and endorsed by the end of the following month. In case there are deteriorated or cancelled sheets, these should be kept precisely to ensure the inalterability of the data and the sequence of the unique numbering.
The company is obliged to keep the single labor book at the registered office where the employer operates or as a second alternative, it can be entrusted to a licensed professional. Regardless of the choice, the company must be able to show the document to supervisory bodies within 15 days of the request.
The single labor book must be kept within the company's records for at least 5 years from the last record date.
What workers are recorded in the single labor book?
The single labor book records, in general, specific categories of workers:
- all subordinate employees,
- coordinated and continuous employees,
- employees under staff leasing contracts
- and seconded employees.
There are some people who do not fall into the categories of workers to be recorded in the single labor book, namely:
- adjuncts of business corporations
- working partners
- trainees
- interns
What if the single labor book is not filled out correctly? Penalties
If the single labor book is not filled out correctly, a company may face certain penalties depending on the severity of the violations.
If the company fails to fill out the single labor book, the administrative penalty that may apply is between 500 and 2,500 euros.
If the company makes a mistake in filing, the administrative penalty is between 500 and 2,500 euros. Irregularities in filing refer to non-compliance with sequential numbering or the presence of traces of deterioration in the storage of the sheets.
If the recording of the single labor book is not carried out properly, the administrative penalty is between 150 and 1,500 euros for an enterprise of 10 workers and between 500 and 3,000 euros if the enterprise has more than 11 workers. Irregular registration refers to failure to record data or incorrect recording of data.
If the registration of the single labor book is made late, the administrative penalty is between 100 and 600 euros for a company of 10 workers and between 150 and 1,500 euros if the company has more than 10 workers.
Hopefully, thanks to this article, you will be able to avoid mistakes in the compilation of the single labor book, which, as we have seen, can cause serious financial losses for your company.
However, if you still find the compilation of the single labor book complicated or has too many elements to be done personally, we recommend that you consult an employment consultant or view the section of our software that deals with payroll processing.
Article translated from Italian