Internet Benefit | FAQ

Frequently asked questions

Sophie Jordan avatar
Written by Sophie Jordan
Updated over a week ago

This article provides answers to frequently asked questions. The article lists possible questions from employees as well as questions from employers.

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) and the costs for hardware and equipment (e.g. modem, connection, etc.).

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 benefit is 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 limiting the monthly Internet allowance for employees.

Can the Internet Benefit be used by employees on short-time work?

Yes! The subsidy does not apply only in the case of "short-time work 0" (100% work loss).

Will the data be saved when I change my smartphone?

Yes, your data will be saved in the Circula app. You can log in with your new smartphone.

How does Circula ensure data protection?

All information on data protection at Circula can be found here.

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."

Do you still have questions?

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