Ready to offer childcare cost reimbursements to your employees? Let's go! 🚀
Details of the benefit
Via this benefit, you can reimburse your employees for childcare expenses they have already incurred in a tax-efficient manner, up to EUR 600 per year per child. Withholding tax is due on the reimbursement, but no social security contributions (13.07%).
Navigate in the Payflip admin tool to Company > Benefits > Childcare Cost Reimbursement and click 'read more' for more concrete details and a detailed calculation.
Activation of the benefit
⚠️ This benefit is visible to all admins in the Payflip admin tool, but as long as the status is not set to active, your employees will not see it.
1. Request the correct wage code from your social secretary
Once you approve a choice for childcare cost reimbursement, it will appear in that month's payroll file. To process the reimbursement correctly in your payroll, we need to know the correct wage code.
You can use the following template email to request this wage code from your social secretary.
Email template
Email template
Hello there 👋
We will soon be adding a new benefit to our Payflip flex plan: the . Through this benefit, our employees can have EUR 600 per child per year reimbursed through their budget in Payflip.
To properly process our employees' choices for this benefit in the payroll, we need to know which wage code to enter in Payflip. This wage code must trigger the reimbursement of a gross amount to the employee, and have the following backend processing:
❌ No employee social security contributions
✅ Application of graduated witholding tax
When employees make a choice for this benefit, these choices will be included in the monthly payroll files that Payflip delivers.
Could you let us know which payroll code can be used for our file?
Thanks in advance!
2. Enter the wage code in Payflip
Once you have received the wage code, you can enter it in Payflip.
Navigate to Payroll > Wage Codes and enter the wage code in the provided field. Afterwards save your changes.
3. Activate the benefit
⚠️ Ideally, you complete this action only after the correct wage code has been communicated by your social secretariat. Otherwise, you risk that the first choices cannot be processed correctly in the next payroll processing.
Navigate in the Payflip admin tool to Company > Benefits > Childcare Cost Reimbursement and click 'activate'.
Indicate whether you want to use the general terms and conditions system.
💡 Tip: this is the case for most of our clients. You can always check another benefit to see if this is activated there. If so, you can also activate this option for the reimbursement of childcare costs.
Indicate with which budgets your employees can make this choice.
Add an optional choice deadline.
💡 Tip: there is no immediate reason why you would enter a choice deadline here. The childcare cost reimbursement follows the normal Payflip year timing, so you can safely leave this open.
4. Inform your employees
Time to make some fuzz about it! Don’t forget to inform your employees about this brand-new benefit in your flex plan. 😉
Every company has its own way of communicating, but here is already some inspiration. 👇
Communication Inspiration
Communication Inspiration
Hello there 👋
Great news! 🎉 We have added a brand-new benefit to our Payflip flex plan: the reimbursement of childcare costs. This is your chance to get reimbursed for the childcare costs you incurred this year via your Payflip budget.
How does it work?
You can get reimbursed up to €600 per child per year for childcare expenses during or outside school holidays. 🧒 Find out here exactly which costs are covered. Withholding tax applies to this reimbursement, but no social security contributions (13.07%).
What do you need to do?
Log into the Payflip tool and look for the benefit 'reimbursement of childcare costs'. Enter the necessary details and voila, job done. The reimbursement will be included in your payslip in the month that HR approved your choice.
We look forward to seeing the choices for this new benefit come in. 😉
Best regards,
Your HR Team