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How much is the reimbursement for childcare expenses?
How much is the reimbursement for childcare expenses?

This article explains the net reimbursement of childcare expenses that you can request through Payflip.

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Written by Payflip Care
Updated over 2 months ago

In Payflip

  • Enter the amount that was spent this year, for example, 600 EUR.

  • Payflip calculates the corresponding budget impact for you. This is the employer's cost to choose this benefit. For childcare, this is equal to the incurred costs: 600 EUR.

  • Employees must upload an invoice or certificate for expenses made in the current calendar year.

One-time payment

In the month of approval, the specified amount is processed in the payroll. At this time, the following statutory and conventional deductions are applied to the amount you specified:

  • ❌ NO employer's social security contribution (~28%)

  • ❌ NO employee's social security contribution (13.07%)

  • ✅ Baremic withholding tax

Childcare expenses incurred

600 EUR

Employer's SS (28%) - Not applicable

- 0 EUR

Employee's SS (13.07%) - Not applicable

- 0 EUR

Withholding tax (40 - 53.5%)

- 240 to 321 EUR ( = 600 x 40-53,5%)

Net

Between 279 and 360 EUR

What is the financial advantage?

Does a reimbursement around 300 EUR seem small to you? Let's look at how much you would receive in cash with your traditional end of year premium (for other Payflip budgets it is a different, but similar calculation).

Equivalent year-end bonus (employer cost)

600 EUR

Employer's SS (28%) - Not applicable

- 131,25 EUR

Gross end of year premium

468,75 EUR

Employee's SS (13.07%) - Not applicable

- 61,27 EUR

Withholding tax (40 - 53.5%)

- 163 to 218 EUR ( = 407 x 40-53,5%)

Net

Between 218 and 244,5 EUR

Thus, your financial benefit will be between 60 and 115 EUR. You can find the exact amount in Payflip on the check out screen.✨

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