Non-cash remuneration values

What is meant by Non-cash remuneration values?

"Non-cash benefits" refer to the monetary value of benefits in kind provided by an employer to an employee either free of charge or at a reduced price. These values are considered part of the taxable income and must be recorded and taxed accordingly. Non-cash benefits can take various forms, such as the provision of a company car for private use, free or subsidized meals, accommodation, or other goods and services.

Typical features of software in the area of "Non-cash Benefits" include:

1. Recording and Management of Non-cash Benefits:

   • Recording all in-kind benefits provided to employees, including their type and value.
   • Managing information on the use of company cars, corporate housing, and other benefits.

2. Valuation of Non-cash Benefits:

   • Automatic calculation of the monetary value of benefits based on current legal requirements.
   • Consideration of flat-rate and individual valuation guidelines.

3. Integration with Payroll:

   • Incorporating non-cash benefits into the monthly payroll process.
   • Automatic adjustment of taxable and social security-relevant amounts.

4. Reporting and Documentation:

   • Generating reports on provided non-cash benefits and their tax treatment.
   • Providing documentation for audits by tax authorities.

5. Compliance and Updates:

   • Ensuring compliance with legal requirements and regularly updating non-cash benefit values according to current regulations.
   • Automatic adjustment to changes in tax laws.

6. Communication with Employees:

   • Informing employees about the non-cash benefits provided and their tax implications.
   • Providing summaries of received benefits and their valuations.

Examples of "Non-cash Benefits":

1. Company Car:

   • Private use of a company-provided vehicle, valued according to the 1% rule or based on a mileage logbook.

2. Meals:

   • Free or subsidized meals provided by the employer in the canteen or through meal vouchers.

3. Accommodation:

   • Provision of accommodation or housing by the employer, valued based on specific flat rates.

4. Company Mobile Phone:

   • Use of a company-provided mobile phone also for private purposes.