Last modified:Thursday 31 October 2019
You may consider giving your employees fringe benefits on top of their gross salary. A financially interesting option since it means no or less taxes for you as an employer. Not to mention the choice of possibilities. Here's a summary.
By far the best known: benefits in kind
Benefits in kind are undoubtedly the best know category. These would include a company car, a free fuel card, the provision of a laptop or mobile phone, etc. Your employee will still pay taxes on these advantages, which will be determined by the value of the benefit in kind.
'Small extras': social benefits
Social benefits are 'unimportant benefits': rather than having to do with work, they serve a social purpose. Some examples: sports subscriptions or free soup, tea and coffee during working hours.
Your employees don't have to pay social security contributions or taxes on these perks. As an employer, you can deduct social benefits as a business expense, provided they belong to the "non-deductible expenditure under corporation tax". Your accountant will provide you with more information on the subject.
What about meal vouchers?
Meal vouchers also belong to social benefits, under certain conditions. Note: they are not tax deductible.
The logic behind expenses proper to the employer
Your employees need resources to do their job effectively: from protective clothing to a laptop or the internet. As an employer, you are obliged to provide those things. This is the principle for the 'costs proper to the employer' category. For example, the reimbursement of train tickets if an employee has to travel or the accommodation costs for a business trip would be included.
Neither you nor your employee are required to pay taxes on these costs, which also fall under deductible professional expenses.
For a better work-life balance: new-age benefits
New age benefits are designed to promote the well-being of employees and optimise their work-life balance. Examples include company crèches, laundry and ironing services and fitness and sports facilities.
Supplementary pension benefits under a group insurance
A group insurance allows your employees to supplement their pension. As an employer, you can choose to set up your own pension fund or to take out a collective group insurance policy with an insurance company.
Finally: share remuneration forms
All forms of remuneration that are related in one way or another to shares are included in the share remuneration forms. Stock options or capital participation are a few examples.
Conclusion: get expert advice
Since fringe benefits alone include hundreds of options that may or may not be tax deductible, each with its own rules and conditions, seek your accountant's help to choose the most advantageous ones.