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.
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.✨