The internet allowance of Circula Benefits offers you the possibility to increase the salary of your employees by up to 50 Euro per month or 600 Euro per calendar year (= 12 x 50,00€) in a tax-optimized way. However, employers have the option of setting the monthly Internet allowance for their employees at a lower amount. This allowance is granted on top of the wages owed.
How does the Internet Benefit work?
Circula provides you with a contract, which you present to your employees to sign. You then activate the Internet Benefit for your employees and invite them to Circula. Employers enter their Internet costs once in the mobile app and now automatically receive their reimbursement every month. Circula provides you with the import for your chosen payroll software for the payout.
Only costs that are actually incurred as a result of Internet use may be submitted.
If the monthly Internet costs should change, the new amount needs to be updated in the Circula App right away.
No receipt is required to claim Internet costs. The statement provided and signed by the employee is sufficient.
If employees make false statements about the actual Internet costs, they are liable for this. This means taxes and social security contributions are to be borne by the employee in case of false declarations.
Frequently asked questions
What costs are covered by the Internet flat rate?
The costs incurred include the basic fees for Internet access (e.g. DSL or cable Internet contract).
Are there any costs for employees?
No, the costs for using Circula are covered by the company. For employees, this only increases their net salary. For employees, this employee benefit is also completely tax and social security free.
Does this only apply to Internet costs incurred when working from a home office?
No, the Internet allowance can be granted regardless of whether employees work from home or in the company office. It is also not a prerequisite that the private Internet connection is used for business purposes at all. Employees can also use the Internet 100% privately.
What is the maximum monthly amount of the Internet allowance?
The monthly Internet allowance is limited to a maximum of €50. However, employers have the option of setting the monthly Internet allowance for employees at a lower amount.
What is the legal basis for the Circula Internet allowance?
According to § 40 para. 2 No. 5 EStG, employers can reimburse their employees for Internet use: "In deviation from para. 1, the employer can levy wage tax at a flat rate of 25 percent, insofar as he transfers data processing equipment to the employees free of charge or at a reduced price in addition to the wages owed anyway; this also applies to accessories and Internet access. The same applies to subsidies paid by the employer to cover the employee's expenses for Internet use in addition to the wages owed anyway."
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