Employee Benefits
get the right software solution from experts
Skilled labor shortage, new work, real wages – three terms that have become an integral part of our everyday working lives and the current debates about changes in the labor market. Only with new, innovative approaches can employers remain attractive and retain employees in the long term (retention). Suitable software solutions can help to offer the right benefits – without administrative effort and with high employee satisfaction.
How can employee loyalty be increased?
Only benefits that are really in demand for employees ensure increased loyalty and appreciation. Net wage optimizations in particular, which make use of the flexibility provided by tax and social security law, are equally attractive for all employees and also save employers wage costs compared to a traditional salary increase. A specialized software solution is required so that companies can be sure that they are observing and correctly implementing all tax law aspects without risking a high administrative burden. This should also be able to be integrated into the payroll accounting processes and is ideally recommended by tax offices.
The advantages of employee benefits
Smart net wage optimization saves employer costs on social security contributions and taxes. Some benefits, such as benefits in kind, are completely tax-free, while others are taxed at a flat rate of 25%. In any case, a net increase with benefits is cheaper for you than an equivalent salary increase. Here is a calculation example if you offer employees a tax-free meal allowance, a tax-free mobility budget, an internet flat rate, a vacation allowance and benefits in kind as benefits:
With suitable software, the following benefits can be introduced without a great deal of administrative effort:
The benefit in kind: For the benefit in kind, benefit providers are recommended who provide their
employees with digital vouchers through a user-friendly app. This means that employees receive up to €50.00 more net per month in the form of
tax-free benefits in kind, which can be redeemed online and offline at numerous partner shops of their choice throughout Germany. The benefit in kind is therefore a small contribution
to offsetting inflation and shows your team benevolent appreciation. Make sure that the provider offers vouchers that are completely tax- and social security-free according to Section 8 Paragraph 2 Sentence 1 of the Income Tax Act.
● The meal allowance: A flexible and digital meal allowance can be redeemed on up to 15 days
per month. Simply scan the receipt from the restaurant, bakery, supermarket or delivery service and receive up to €108.45 net back in the following month. The highlight: Completely tax-free and free of social security contributions for employees, for companies from €11.36 per submission.
● The mobility budget: Offer your employees flexible mobility alternatives to the company car or job ticket. Suitable software providers allow you to adapt to the individual needs of your employees, because all transport costs are subsidized. The amount of the subsidy can be set individually, without administrative effort and of course in compliance with tax regulations.
● Internet flat rate: Use employee benefits where they really make sense,
and support your employees in the home office with up to €50.00 a month for
a stable internet connection. Show your appreciation – smart, flexible and
cost-optimized.
● Recreation allowance: Enable your employees to have a healthy work-life balance
and subsidize a relaxing time for them once a year. Succeed in the
war for talent and use the recreation allowance to stand out from your strongest
competitors – with the right software, tax-compliant and without
administrative effort.
Conclusion
Good software for employee benefits helps you to increase employee satisfaction and thus bind employees to your company. It also increases motivation and performance. In addition, you can save on taxes and social security contributions compared to a traditional pay rise. At a time when companies are fighting for talent and employee retention is becoming increasingly important, this is an ideal solution – without a lot of administrative effort. HRNeeds is happy to help you find the right provider for employee benefits.
With the help of our software comparison, we can find the solution that suits your requirements and give you a suitable recommendation. The whole thing is non-binding and free of charge. If you wish, you can also get free expert advice.