Do you offer the Mobility Budget to your employees in Payflip and need to recalculate the TCO of one or more employees on the basis of the new formulas?
Don't panic, Payflip is here to help you see things more clearly!
In this article, you'll find out what you need to do to adapt to the new legislation:
1️⃣ Choose the formula
You need to make 2 choices:
Which formula will you apply?
The actual costs formula
The flat-rate cost formula
How are you going to apply this formula and calculate the TCO?
On an individual basis, per employee
On a job category basis, by choosing a reference car
⚠️ The same method, whether actual or flat-rate, must therefore be applied to all the company's employees.
➡️ Formulas
| Actual costs formula | Flat-rate cost formula |
Formula details | Evaluation of the actual cost of the car allocated to an employee over the last 4 years of use (or as long as possible if used for less than 4 years).
The TCO is made up of all the actual costs incurred by the employer to finance a company car, as well as the related costs mentioned in the car policy. | The calculation depends on the type of vehicle. A distinction is made between :
In both cases, the TCO is made up of a fixed component and a variable component. |
For whom? 🤷🏽 |
|
|
💡 In practice, Payflip has found that the flat-rate method for leasing cars is the most widely used. This method is :
easy to implement
and transparent for employees
It is often applied by job category on the basis of a reference car.
2️⃣ Adapt your Mobility Budget policy
Based on the 2 choices made above, adapt your Budget Mobility policy in Payflip.
Ask us to send you your Mobility Budget policy via chat.
Add the following paragraph, adapted to your 2 choices.
French version
French version
"A partir du 1er janvier 2024, pour les nouveaux employés utilisant le budget mobilité ou les employés utilisant déjà le budget mobilité et changeant de fonction ou bénéficiant d'une promotion, L’Employeur opte pour [la formule des coûts réels pour calculer le TCO. Il s’agit d’une évaluation du coût réel de la voiture affectée à un Travailleur, sur les 4 dernières années où il en a bénéficié (ou le plus longtemps possible s’il en a bénéficié moins de 4 ans).] / [la formule sur base de valeurs forfaitaires pour calculer le TCO.] Le TCO sera calculé [sur base individuelle par employé] / [par catégorie de fonction sur base d’une voiture de référence]. Cette méthode de calcul du TCO sera utilisée par l'Employeur pendant au moins trois ans."
Dutch version
Dutch version
"Vanaf 1 januari 2024, voor nieuwe werknemers die gebruik maken van het mobiliteitsbudget of werknemers die reeds gebruik maken van het mobiliteitsbudget en van functie veranderen of een promotie genieten, gebruikt de Werkgever [de werkelijke kostenformule om de TCO te berekenen. Dit is een evaluatie van de werkelijke kosten van de bedrijfswagen die aan een Werknemer is toegewezen, over de laatste 4 jaar dat hij er gebruik van heeft gemaakt (of zo lang mogelijk als hij er minder dan 4 jaar gebruik van heeft gemaakt)] / [de formule op basis van forfaitaire waarden om de TCO te berekenen]. De TCO zal berekend worden [op individuele basis per Werknemer] / [aan de hand van een referentiewagen per functiecategorie]. Deze methode van berekening van de TCO zal de Werkgever minstens drie jaar lang hanteren."
English version
English version
"From 1st January 2024, for new employees using the mobility budget or employees already using the mobility budget and changing function or benefiting from a promotion, the Employer will opt for [the actual cost formula to calculate the TCO. This is an evaluation of the actual cost of the car assigned to an Employee, over the last 4 years that he has benefited from it (or as long as possible if he has benefited from it for less than 4 years)] / [the formula based on fixed values to calculate the TCO]. The TCO will be calculated [on an individual basis per employee] / [per function category based on a reference car]. This method of calculating TCO will be used by the Employer for at least three years."
Delete your old Budget Mobility policy in the Payflip tool:
Go to the 'Company' > 'Documents' tab
Click on the Budget Mobility policy
Click on the pink and white button at the top right to deactivate the document
Click on delete the document and then again in the window that appears
Download the new Budget Mobility policy into the Payflip tool:
Go to the 'Company' > 'Documents' tab
Click on the '+ add a document' button in the top right-hand corner
Enter the name and language
Download the document in pdf format
Click on 'Add document'
3️⃣ Calculate the new TCO amounts
1. Download our TCO calculator
Download our TCO calculator and save the file on your computer.
🤔 Do you come across cells where it says '"NAME?'? Click on the cell in question, put the cursor in the function bar and then press 'enter'. Everything should return to normal!
Read the instructions to find out how to use this file. 🎮
2. A few tips from Payflip on applying the new formulas
Actual cost formula | Flat-rate cost formula - leased or rented vehicles | Flat-rate cost formula - owned or financially leased vehicles |
There are no changes to the old calculation that Payflip provided. If you use this formula, you can continue to apply it.
For an update, see the tab for this formula in our TCO calculator. | There is no change from the previous calculation provided by Payflip, if fuel costs are included in the annual cost of the hire or lease.
| You must apply the new formula published by the government.
❗️Recalculate the TCO on the basis of the relevant tab in the TCO calculator. |
🎮 How do I use Payflip's TCO calculator?
Payflip has created its TCO calculation file, which we are making available to you so that you can calculate the TCO applicable to your employees yourself.
The Payflip TCO calculator file has 6 tabs:
The 2 calculation methods and some explanations: in this tab, choose the formula you are going to apply.
FAQ: you will find explanations and additional information useful for calculating the TCO.
The actual costs formula: here you can calculate the TCO based on actual costs.
The flat-rate formula - Leased or rented vehicle: here you can calculate the TCO on the basis of the flat-rate method for the types of vehicle indicated.
The flat-rate formula - Owned or financially leased vehicle: here you can calculate the TCO using the flat-rate method for the types of vehicle indicated.
Calculation examples: for each of the formulas, there is an example with fictitious data to guide you.
When you have chosen the formula you are going to apply (based on the information given in the file - tabs 1 and 2), calculate the TCO directly in the tab for the chosen formula.
How do you do it?
🔵 Fill in the blue boxes
🟠 Make a choice in the orange boxes
🟢 Check the information in the green boxes
⚫️ Don't forget to check the information in the boxes with a black top right-hand corner. These can be very useful!Comment faire?
For certain information, don't hesitate to ask your accountant (e.g. VAT or tax on expenses).
The amount of the Mobility Budget/TCO is first calculated on an annual basis and then according to the number of calendar days during which the employee participated in the Mobility Budget during the calendar year (pink box).
❓If you have any questions about the file itself, please do not hesitate to contact us via chat or at the following address [email protected].