Payroll accounting — what are taxable benefits in kind?
Mit dem Jahresabschluss wird die Buchführung eines jeden Geschäftsjahres abgeschlossen. Der Jahresabschluss hat große Relevanz, unter anderem, weil er die gesamtwirtschaftliche Situation eines Unternehmens repräsentiert. Ein Jahresabschluss kann jedoch auch nichtig sein. Wir von der Steuerkanzlei Martin Bleckmann in Köln erklären Ihnen, ab wann das der Fall ist und welche rechtlichen Folgen ein nichtiger Jahresabschluss mit sich bringt.
In addition to actual compensation, many companies also provide their employees with benefits that are not paid out in the form of money. We are happy to inform our clients about these payment options. Such Benefits in kind are often taxable — this raises many questions for payroll accounting. Martin Bleckmann, tax advisor and auditor in Cologne, answers some of your questions below.
What are taxable benefits in kind?
Employees usually receive a cash benefit for their work performance. This is either a fixed salary or an hourly wage. In addition, can further services be agreed upon. The legislator then mentions these benefits in kind, and you will often also find the term “Monetary advantage” for that. As part of the personal pay of workers, they are subject to tax liability in the income tax (§8 EStG) if they meet certain requirements. Often they are then also subject to social security contributions. A typical example of a taxable benefit in kind is the private use of company property, such as a company car.
When are benefits in kind worthwhile?
With a clever use of benefits in kind to employees, the Optimize remuneration. Employers as well as their employees benefit from this. Depending on the benefits in kind, both sides can pay both taxes and social security contributions save. Management is happy to use these additional payments to retain specialists and executives to the company and accounts these costs as Operating expenses for staff. Recipients of benefits in kind may benefit from a particularly low pricethat they would not have received as private consumers.
What are taxable benefits in kind?
Payroll accountants must take a close look at employee benefits in kind and documenting. Tax office auditors particularly like to look at this. If you have any questions, please contact your tax advisor in good time; details are often important. This specifics You should know:
- Public transport tickets, fuel vouchers or membership in the local gym — for benefits in kind up to one Value of 44€ per month There are no payroll taxes and no social security contributions.
- Die private use of company vehicles counts as a monetary advantage. It is either calculated in accordance with the one percent rule on the basis of the gross list price or calculated on the basis of the kilometers actually driven privately (proof with logbook).
- Contribution in kind is also the discounted purchase of goods (e.g. through staff discounts). However, an allowance of 1,080€ per year is granted here. Only an additional amount must be included in the payslip for income tax and social security.
- Subsidies for prevention measures or health promotion (e.g. physiotherapy) remain tax-free as a benefit in kind up to an annual amount of 500€.
- A subsidy to childcare costs is considered a benefit in kind that remains exempt from tax and social security contributions for an unlimited period of time.
- Gratuitous or discounted meals Outside business trips, benefits in kind include, for example, subsidies for canteen meals. The monthly allowance of 44€ also applies here.
Case law on benefits in kind changes frequently
Saving taxes and social security through monetary benefits can only be achieved if all legal regulations are correctly applied. But it is precisely this area that is subject to frequent Amendments made by the legislator. Your tax advisor is always up to date here. Get comprehensive advice!
