Payment in kind

December 2, 2020

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For employers: Motivate employees with tax-free gifts

By the end of the year, employers can support their employees with a tax-free bonus of up to 1,500 euros. This special bonus is intended to help alleviate the hardships of the corona crisis. Employers can pay out the money directly as financial support or in kind.

Employers who not only want to strengthen their employees but also their own region at the same time can pay out the 1,500 euros in whole or in part in regional voucher solutions.

With the “B-Card”, Regional Hero GmbH in Berlin is issuing a voucher solution that works like a prepaid credit card. Customers can use the “B-Card” to pay, donate — or simply pay money to their favorite location. According to the motto: Pay now, consume later.

More than 400 favorite places in the areas of gastronomy, retail, culture, services and sports across Berlin are already taking part. Customers can carry the “B-Card” as a card in their wallet or pay digitally via app. This means that customers can also bill online services at their favorite locations via Dieb-Card.

In Munich, the “Minga Card” will be released in mid-December, which works according to the same principle as the “B-Card”. With Regional Hero GmbH, both cards were created from the non-professional platforms Helfen.Berlin and Helfen.München, which were launched during the first lockdown. The two city cards are intended to help make the principle of local voucher systems sustainable.

Employers who want to strengthen local companies not only during Corona times can still use tax gifts for their employees in 2021.

  • Benefits in kind: Employers can pay their employees 44 euros tax-free in benefits in kind every month. Benefits in kind are tax-free gifts without special reason. It is important that the monthly limit of 44 euros is not exceeded, as other social security contributions are due
  • • For personal events such as the birth of a child, birthday or wedding, the employer may give away 60 euros tax-free each time. It is important that it is explicitly not cash but benefits in kind. An electronic billing system such as the “B-Card” and the “Minga Card” is particularly suitable for this, as it is impossible for customers to receive the money in cash. If so, the tax office could refuse the tax exemption of the gift

“It is important to us that companies that have come through the corona crisis well have the opportunity to provide targeted support to industries that are doing less well,” says Pascal Schreiber, founder of Regional Hero GmbH. “With a regional voucher, companies are not only doing something good for their own employees, but also strengthening the local environment,” says Schreiber.

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Guter Rat für gute
Unternehmen.

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