Extra for your staff | The case

thirteenth month

This ‘extra month’ is equal to the gross salary. The thirteenth month is counted as salary by the tax authorities, so there is both payroll tax and national insurance premiums and deductions for employee insurance premiums. A thirteenth month may be fixed in
employment contract.

Profit sharing
You can enter how often and to what extent you let your staff share in the profits. You pay premiums on the distributed profit sharing because the tax authorities see it as salary. The total amount can be deducted from the taxable profit as wage costs. The employee, in turn, pays payroll tax on the profit sharing received.

wage savings
Employees may save a maximum of € 613 of their salary each year through a pay savings scheme. As an employer, you can add part of the amount.

Life cycle
Employees may save a maximum of 12% of their gross salary tax-free per year, up to a maximum of 210% of the last annual salary.

annuity insurance
It can be interesting to insert the saved salary into a life insurance policy that includes a tax clause when purchasing an annuity. The purpose of this is for the insurance company to supplement the pension. This amount can be deducted from the taxable income. It gives the policyholder an extra tax benefit on a saved amount (the amount supplemented by you) on which no tax has previously been paid.

part-time work
Employees have a legal right to work part-time. So be willing to accept an employee who wants to work part-time, so you can make good agreements together. By law, companies with fewer than ten employees must set up their own part-time scheme.

Natural island
A good benefit for staff is a discount on products or services from the company. For the tax authorities, these unexpectedly fall under ‘natural remuneration’. Remember the so-called available space: 20% discount per. product on staff purchases with a maximum of € 475 per. employee per year. The two previous years’ unused free space can be added to this.

Free mobility
You can meet an employee who is moving to live closer to your business with a tax-free relocation allowance. This equates to 12% of the annual salary or € 5,445 as a contribution to other costs such as painting and repair costs.
The condition is that the new home is within ten kilometers of the work and that the travel distance is reduced by at least 50% or 10 kilometers. The relocation of your employee must also take place within two years after the start of employment or after a transfer.

Meals
Refunds or deliveries of meals with a more than random occupational nature are not taxed. For example, during overtime, business travel, business meetings with customers outside the permanent workplace and work in non-permanent locations.
For drinks during working hours that are not part of a meal, such as coffee, tea, fruit and snacks, you can provide a free allowance of € 2.75 per person. working week or € 0.55 per. working day. You do not need to keep proof of this to the IRS.

education
An ambitious employee will definitely appreciate a course or workshop. The training expenses are fully tax deductible, but only if you can demonstrate that the bill was paid during the study and not subsequently. Grant schemes for education no longer exist. The government has only made a scheme for specific cases in the law on reduction of payroll tax and premiums. Under this law, a maximum of € 2,500 per person may be required. employee annually.

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Staff parties
A party every now and then is good for mutual relationships. Extra festive is the event that there is no maximum for the amount that can be made available in connection with random staff considerations such as parties and travel. A staff party must have a common character, which means that at least three quarters of the staff participate. You can also split a staff party or outing into a business and non-business part.

Company fitness and chair massage
Fitable employees report sick less often. If you allow your employees – at work or in a place you have designated – to participate in corporate fitness, you can reimburse them tax-free or allow them to do so tax-free. The condition is that participation is open to 90% or more of all employees.

Another healthy approach is to hire a chair masseur. A chair massage is provided free of charge if it is part of the work environment plan, takes place during working hours, the staff does not pay personal contributions, and there is a plausible private saving for the employee.

Smoking cessation course
Would you like to pamper your employees with a smoking cessation course? It is also tax free. If there are several employees who want to stop, you can consider a special company training. A condition for being reimbursed for a smoking cessation course is that it is included in your company’s work environment plan. This scheme can only be used once per.

Lending to staff
You can also lend money to an employee with financial problems. In this case, costs such as final commission are deductible as a product of our own company. This is not the actual cash loan (interest rate).

Rewards, gifts and Christmas balls
Employees still seem to really appreciate a Christmas package. Playing for Santa is advantageous because you do not pay tax on a package with a maximum value of € 70, only a final fee of 20%. If you buy more expensive packages, you pay tax on the remaining amount.

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