Travel expenses for mini-jobs
January 23, 2010 | 40,00 EUR | answered by Matthias Wander
Hello,
since relocating my company to a different location in 2008, I have been paying all employees a flat transportation allowance of 50.00 euros per month. The applicable taxes are covered by my company, so employees receive the transportation allowance net.
Question 1: Will minijobbers, who regularly earn about 390 euros per month, become subject to social security contributions due to the transportation allowance (which would then be 440.00 euros net)?
Question 2: As some employees are already older and receive old-age pension, would their pension be at risk due to the payment of the transportation allowance in the above-mentioned scenario?
Thank you.
Dear inquirer,
Thank you for your inquiry, which I would like to answer based on the information you provided in an initial consultation.
The income tax for travel cost subsidies can only be lump-sum taxed to the extent that it can be deducted as business expenses by the employees. If the lump-sum taxation applies to the reimbursement of travel expenses, there is exemption from contributions in social insurance to that extent. Any amount paid beyond that cannot be subject to lump-sum income tax and is subject to social insurance contributions. The payment of a lump-sum travel allowance constitutes normal wages and is always subject to tax and social insurance contributions.
1. By paying the lump-sum travel allowance, the €400.00 limit is exceeded. The affected employees become subject to social insurance contributions.
2. Since the travel allowance counts as wages, the entire amount is relevant when assessing the earnings limit for pension recipients. The amount of the earnings limit depends on whether the old-age pension is claimed as a full pension or a partial pension.
The following principles apply to earnings for old-age pensioners:
- Pension recipients who are already 65 years old may earn without restriction.
- The amount of permissible earnings depends on whether the old-age pension is paid in full to pension recipients under 65 years old (so-called full pension), or whether the pensioner chooses to receive their old-age pension as a partial pension.
- For old-age pensions paid as a full pension to pension recipients under 65 years old, the earnings limit is €400.00 per month.
The relevant earnings limit may be exceeded a maximum of two times in a calendar year by an amount up to the level of the earnings limit. This means that in 2 months, earnings can be up to double the limit amount (2 × €400.00 = €800.00).
I hope this provides you with an initial overview.
Best regards,
Wander
Tax consultant
