As an employer, you want to involve your employees in the success of your company, and the summer agreement contains the ideal measure for doing so: the profit contribution. Employees earn a share of the company's profits and that contribution is not subject to ordinary social security contributions and taxes. Delphine Vandamme reviews the matter!

The profit premium is completely new in effect since 1 January. Was it a good choice on the part of politicians?

I do think so because that way you can bind the employees extra to the company. It is very important to know that it is a collective fact.

So you can't reward one excellent employee?

No, unfortunately, that is not possible. There are two different types of premium. We have an identical premium where every employee earns the same amount. And we have a categorised premium which is based on objective criteria, such as seniority or age. This must, however, be laid down in a collective agreement (CAO).

What is the amount of the premium?

It is not unlimited, we need to look at the wage mass for this. A maximum of 30% of the wage mass may be paid out in the form of a profit premium.

And how heavily is it burdened?

Two data must always be checked: RSZ and taxes. Before taxes, i.e. the employee, there is a 7% valuation. For the employer, however, it is not a deductible cost. And if you then look at the social security part, an employee contribution of 13.07% is due.

What is not taxed are per diem allowances for trips outside of the company?

That is correct. This is more a cost that is calculated for the employer When employees have to go outside the office for a certain service placement, they incur costs that are for the account of the employer, for example meal costs. And that can then be compensated by the employer on the basis of justification documents, or it will be on a flat-rate basis. In order to do this, it is necessary to refer back to the amounts allocated to staff members of the government. It is important, however, that a number of conditions are met. From September 17 onwards, the offsite service is to have a duration of at least six hours. Is it also necessary to ensure, among other things, that there is no double use! It is not intended, for example, that a refund should be made on the basis of accounting documents and that a lump-sum daily allowance should then be granted as well.

So, as a matter of fact, you should properly account for those costs that are specific to the employer as an entrepreneur? You cannot just put an amount on it, for example 300 euros per month. You have to justify that?

Indeed, we often see entrepreneurs simply putting a fixed amount on it, for example 500 euros. Here we consult them to revaluate this. Can we provide sufficient justification for this in such a way that in the event of a social or tax audit, the employer or our customer will not be faced with surprises.

Employees still love the classics: the company car and, since a few years, the company bikes as well?

Yes, the company car is still one of the most used benefits. There is a possibility to return the company car for a certain premium, the cash-for-car principle. But given a recent survey, it turns out that employees do not really want to give up their company car. As you also mentioned, the company bike is also something very interesting because the employer can pay for that company bike. And on the other hand, there is no benefit in kind. When it is also used for minimum commuting, of course. So the compensation one receives for this is also tax-free.

The work-life balance is also very important for people. In this context, teleworking has become quite popular.  

Indeed, teleworking has become increasingly popular. Working from home, meaning that you also have the opportunity within normal office hours to work from home and actually pays for everything yourself in terms of PC or internet, you also get a tax-free allowance of 40 euros. In addition to the PC and the internet, however, we also have heating, in other words the utilities, and those allowances can go up to 120 euros.

Are there any incentives that improve the work-life balance? Gifts from the employer to the employee?

Yes, a number of platforms have already been created in which the employer gives the employee a budget and that budget are hours that can be freely filled in for cleaning, ironing, gardening, etc., so that this work-life balance is maintained.

And this is tax-free?

This is not tax-free, but is assessed in a tax-friendly manner.