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What is the advantage of choosing warrants through Optiniti?
What is the advantage of choosing warrants through Optiniti?

This article explains the advantage of choosing warrants via Optiniti instead of a cash pay outs of your budget.

Payflip Care avatar
Written by Payflip Care
Updated over a week ago

Here you can find all details about receiving your budget in warrants.👇

In Payflip

  • Enter the number of warrants you want to choose with your budget.

  • Payflip calculates the associated budget impact of this choice for you. This is the employer cost to choose this benefit. For warrants, that's the total purchase price of the warrants plus the applicable service fee.

  • Once the grant date approaches (you can find this date in Payflip), Optiniti will provide you with all necessary information and instructions to log in to Optiniti's tOption platform. Through this platform, you can later sell your warrants.

Advantage of choosing warrants

Choosing warrants is a financially advantageous choice because you don't have to pay social security contributions (13.07%) on the value of warrants. Withholding tax still applies.

In summary, this gives the following overview:

  • ❌ NO employer social security contribution (approximately 28%)

  • ❌ NO employee social security contribution (13.07%)

  • ✅ YES exceptional withholding tax

You can convert a maximum of 20% of your total annual salary into warrants.

Theoretical example

Let's have a look at what that advantage would be exactly compared to the payment of your classic end-of-year premium (for other Payflip budgets it's a different but similar calculation). 👇

⚠️ The following example is a simulation where we assume that the purchase price of a warrant is identical to the selling price.

Payflip and Optiniti cannot guarantee that this will always be the case since warrants are subject to a market risk. Always consider your personal financial situation and investment strategy when participating in a warrant plan.

We take the example where you would choose 1000 EUR in warrants in Payflip and a service fee of 5% applies to this amount.

EYP payout

EYP payout

Cost in Payflip

1000 + 5% = 1050 EUR

1050 EUR

Employer NSSO (28%)

- 230 EUR

Gross end-of-year premium

1050 EUR

820 EUR

Employee NSSO (13,07%)

- 107 EUR

Withholding tax (45% in this example)

- 473 EUR (= 1050 x 45%)

- 321 EUR (= 713 x 45%)

Net

577 EUR

392 EUR

🎯 In this example, the financial advantage of choosing warrants will be around 185 EUR net.

Your advantage in practice

When you make a choice for warrants in the Payflip tool, your financial advantage is always simulated under 'Advantage compared to cash pay-out'. 👇

This figure takes into account all components described above. Moreover, it also takes into account your specific situation (such as the % withholding tax that needs to be applied) so you can make your choice with full knowledge. 🌟

Questions about warrant plans?

For specific questions about warrant plans or more information about Optiniti's operations, you can always contact them directly via [email protected].

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