Skip to main content
Annual Payroll Processing
Danielle Duncan avatar
Written by Danielle Duncan
Updated over a week ago

Since budgets in the Payflip cafeteria plan can never be carried over to the next year, an annual payroll processing must also be done.

The social secretariat is and remains the party that definitively calculates the year-end bonus amount in December of a given year (even though Payflip has estimated a budget in the cafeteria plan based on the year-end bonus before December of a certain year).

In this regard, Payflip can only communicate the amounts of expenditures in the cafeteria plan that need to be deducted from the gross amount calculated by the social secretariat.

For the annual payroll processing (as opposed to monthly payroll processing), Payflip communicates to your social secretariat an Excel file containing the gross amount that must be subtracted from the gross year-end bonus amount calculated by the social secretariat.

1. Reduction of Gross Year-End Bonus Amount 💰

The finally calculated gross year-end bonus by the social secretariat must be reduced by the amounts spent on benefits in the Payflip cafeteria plan.

Payflip communicates the total gross amount that must be deducted from the year-end bonus. Depending on what the employee has chosen, 'total gross amount' refers to:

  • All depreciations on IT equipment in the relevant year

  • All bicycle lease amounts in the relevant year

  • The reimbursement of individual pension savings

  • All insurance premiums in the relevant year

The remaining amount of the year-end bonus (after deducting the total gross amount mentioned above) will be paid out by the social secretariat as a classic cash year-end bonus.

2. Difference Between Payflip Budget and Year-End Bonus 🧮

As mentioned above, the calculation of the year-end bonus by the social secretariat may differ from the previously estimated budget in the Payflip cafeteria plan.

  • A positive difference has no impact. This is the case where the social secretariat arrives at a higher year-end bonus amount than initially calculated by Payflip and made available in the cafeteria plan throughout the year.

  • A negative difference does have an impact. This is the case where the social secretariat arrives at a lower year-end bonus amount than initially calculated by Payflip and made available in the cafeteria plan throughout the year. In the case of a negative difference, the difference must be deducted from the employee's vacation pay.

---

Did this answer your question?