The tax wedge cut: tax-free sum, extra credit and supplementary payment — Reading an Italian payslip and the tax wedge cut

Test yourself

Question 1 of 6

An employee earns 12,000 euros over a full year and has no other income. What is the tax-free sum worth?

852 euros636 euros576 euros1,000 euros

Question 2 of 6

How is the percentage chosen for someone who worked only part of the year?

On the income actually receivedOn employment income scaled to a full yearIt is always 7.1%On the previous year's income

Question 3 of 6

With total income of 38,000 euros, what is the extra credit worth for a full year?

1,000 euros750 euros250 eurosNothing

Question 4 of 6

Is a pensioner with 18,000 euros of pension only entitled to the tax-free sum?

Yes, 864 eurosYes, but halvedNo, pension income is excludedOnly with dependent children

Question 5 of 6

At the year-end adjustment 250 euros turn out not to be due. How does the employer recover them?

All on the adjustment payslipIn ten equal instalments, because the amount exceeds 60 eurosIt does not recover themThe Agenzia recovers them with a notice

Question 6 of 6

What separates the supplementary payment from the wedge cut's tax-free sum?

They are the same measure under two namesThe supplementary payment dates from 2020 and covers incomes up to 15,000 euros with its own conditions; the tax-free sum comes from law 207 and covers incomes up to 20,000 eurosThe supplementary payment is for pensioners onlyThe tax-free sum can only be claimed on the return