Do you need more money and have you heard of employee lending ? Many companies offer their employees these benefits . Thanks to the calculation of your monthly salary you will actually know how much liquidity you need.
This type of financing is one of the fringe benefits that an employer offers to its employees. They are services or additional goods (in addition to salary) without taxation or special taxes.
How Does Corporate Employee Loan Work?
The employer can grant loans to his employees as a valid alternative to the sale of the fifth for workers . At this point you must be wondering ” how are they taxed ?”
If the amounts do not exceed € 258.23 , your income as a worker will not be affected for any reason. Conversely, if the amount exceeds this amount, then you will have a total count that will affect the tax.
How does taxation on employee loans work?
Fiscally the interests are much cheaper than the rates of the salary assignment . You will pay 50% on the difference between the official “discount” rate and the interest rate.
If we wanted to give an example: first of all we need to understand the market rate in terms of the amount you have requested. Let’s assume that the percentage is 3% .
Subsequently, this sum must be subtracted from what is paid by your employer, we assume a value of 1% .
3% – 1% = 2%, as I mentioned earlier, the taxation for the company loan to the employee is calculated on 50%, so the maximum tax difference is 1%.
If you are requesting a mortgage loan, the Inland Revenue will allow you to deduct 19% with reference to the interest that will be applied to you, at the time of signing the contract.
Facilitating loan to the employee: how to fill it out
To apply for your company financing as a fringe benefit, all you have to do is complete the form and send the application to the company you work for.
I leave you a Fac-similar loan to the employee from which you can take inspiration, remembering to naturally change both your personal data and those of the company you work for.
Not just cash loans
Fringe benefits do not only include monetary credit. But your employer can decide whether to make other kind of gifts to his employees: a company telephone , a car , guarantee food and lodging or grant agreements on public transport.
Do you have doubts or concerns about how this type of corporate loan works? Comment on the article and I will be happy to give you a hand.