Each benefit is treated differently for income tax purposes. Some benefits, such as benefits in kind, are exempt from income tax, while other benefits, such as reimbursement for meals, are subject to flat-rate taxation. Despite the flat-rate tax, benefits generate clear net advantages for employees, since the flat-rate tax is usually lower than the regular wage tax rate and social security contributions are also reduced. The respective flat tax percentages vary from benefit to benefit.
Note: For the following reasons, the flat-rate tax at :pxtra is always considered separately from the employee's benefit budget:
- the individual flat-rate tax of the benefits is difficult for the employees to understand
- the employees would be negatively surprised if their benefit budget was reduced by the flat-rate tax
- the flat-rate tax can be roughly estimated when introducing benefits and can be deducted from the budget provided beforehand if necessary
We recommend considering the flat-rate tax separately from the benefit budget in order to achieve the greatest possible positive effect on employees. This means that you have to plan about 20% on top of the benefit budget for the flat-rate tax. The exact figures result from the selection of the benefits of the employees.