Leisure time vouchers
The profitability of leisure time vouchers in the view of the employer.
Do you know that by financial rewarding the employer’s costs are by 53% higher than by delivering the meal vouchers in the same value?
Calculate how much you will save.
Example from experience
The employer has been making a decision between the financial reward of 5000 CZK and the same benefit in the form of vouchers for holiday, sport, vitamins, health care or education courses.
Comparison of vouchers and financial reward in the view of EMPLOYER´S costs and reaching of the same employee’s use | ||
| Money | Voucher |
Employee will get | 5 000 CZK | 5 000 CZK |
Employee’s income tax [5 000/(100 %-21,3 %)-5 000]* | 1 535 CZK |
|
Social and health insurance payments [(5 000+933)/(100 %-8 %-4,5 %)-5 000-933]* | 933 CZK |
|
Employee’s gross income | 7 468 CZK |
|
Employer’s costs for social and health insurance payments [7 468 x 35 %] | 2 614 CZK |
|
Employee’s theoretical costs because of tax free vouchers [5 000/(100 %-24 %)-5 000]** |
| 1 579 CZK |
Total employer’s costs | 10 082 CZK | 6 579 CZK |
While financial rewarding the employer’s costs will raise by: | 53 % | |
* 21,3 % rate of tax represents the marginal rate for the taxation of the average salary amount to the extent of 19030 CZK (proclaimed 9.3. 2006) raised by 5000 CZK from the net salary using the tax abatement amounting to 600 CZK.
** Considered income tax base of corporate bodies is 6 579 CZK
Pay attention! Your economist will be interested:
Don´t be afraid of delivering benefits in place of non-tax costs or after the tax profit.
Impact on the total trading income of the company is with respect to high salary payments by benefit delivering in the form of vouchers same as by financial reward.
Non-financial reward in the form of vouchers means for employees an increase of the real income by 49% in comparison with the financial reward of the same amount.