company car
Hello!
My topic is: Company cars for employees.
An employee is about to receive a salary increase. There are 2 options for me to consider:
1. Increase salary according to the collective agreement to a monthly master salary of €3900.
2. Provide the employee with a company car, with a corresponding reduction in salary.
In the payroll, the employee will be charged 1% of the gross list price of the new car. The car to be leased has a gross price of approximately €17,000. The monthly leasing rate is around €200.
- What are the advantages and disadvantages of each option in terms of taxation and social contributions?
- Are the maintenance costs of the vehicle to be covered by the employer?
- What does the employee's contribution regulate in the calculation of the company car in the payroll?
