At Payflip, we always take into account the employer's cost for a multimedia device to calculate the total cost price. But how exactly do we go about this? 💰 Let's dive into the calculation!
How is the employer's cost calculated? 💰
1. Main device (smartphone, tablet, and/or PC)
The total cost price for a multimedia device consists of:
Purchase price of the device: The price we use is always the price including VAT.
Employer's social security contributions on Benefit in Kind (BIK): When you opt for a smartphone, tablet, or PC, a monthly benefit in kind (BIK) is charged through your payslip. The additional costs for your employer in terms of social security contributions are included in our calculation. This percentage varies per company but is usually around 28%.
Double holiday pay on BIK: This is also calculated on the monthly BIK and included in our total cost price.
Employer's social security contributions on residual value: At the end of the contract period, a residual value is charged to take over the device. Social security contributions on this are also paid by your employer and are included in the total cost.
2. Multimedia accessory
A similar calculation applies to accessories.
The total cost price for a multimedia accessory consists of: Purchase price of the accessory: The price we use is always the price including VAT.
Employer's social security contributions on residual value: At the end of the contract period, a residual value is charged to take over the accessory. Social security contributions on this are also paid by your employer and are included in the total cost.
3. Smartwatch
The cost of a smartwatch in Payflip includes:
Purchase price of the smartwatch: The price we use always includes VAT.
Employer's social security contributions on the one-time Benefit in kind: When you opt for a smartwatch, a benefit in kind valued at 50% of the price of the smartwatch appears. The additional costs for your employer in terms of social security contributions are included in our calculation. This percentage varies by company but is usually around 28%.
Employer's social security contributions on residual value: At the end of the contract period, a residual value is charged to take over the smartwatch. Your employer also pays social security contributions on this, which are included in the total cost. ⚽️
Some numerical examples
1.Smartphone ☎️
You want to choose a smartphone with a value of 1000 EUR. For this smartphone, a benefit in kind of 3 EUR per month will be charged for 24 months.
The employer's cost of this benefit is calculated as follows:
Cost of the device | 1000 EUR |
Employer's SS on monthly BIK(approximately 28%) | 3 EUR x 24 months x 28% = 20,16 EUR |
Double holiday pay on monthly BIK | 3 EUR x 24 months x 0,0767 = 5,52 EUR |
Employer's SS on residual value (approximately 28%) | 1000 EUR x 20% residual value x 28 % = 56 EUR |
Total employer's cost | 1081.68 EUR |
2. Smartphone accessory 🎧
You want to choose a smartphone accessory with a value of 500 EUR.
Cost of the accessory | 500 EUR |
Employer's SS on residual value (approximately 28%) | 500 EUR x 20% residual value x 28 % = 28 EUR |
Total employer's cost | 528 EUR |
3. Smartwatch ⌚️
You want to choose a smartwatch valued at 1000 EUR. For this smartwatch, a one-time benefit in kind of 500 EUR will appear on your payslip.
The employer's cost for this benefit is calculated as follows:
Cost of the smartwatch | 1000 EUR |
Employer's SS on one-time benefit in kind (approximately 28%) | 500 EUR x 28% = 140 EUR |
Employer's SS on residual value (approximately 28%) | 1000 EUR x 20% rest value x 28 % = 56 EUR |
Total employer's cost | 1 196 EUR |