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Residual Value Processing: New Automated System 🔄
Residual Value Processing: New Automated System 🔄

What happens when the rental period of a benefit ends?

Sofia Van Rijckevorsel avatar
Written by Sofia Van Rijckevorsel
Updated this week

Some benefits have a specific renting period longer than 12 months. This is the case for multimedia and desk materials.

At the end of the renting period, ownership of multimedia devices or desk material must be transferred from the employer to the employee. This means that for these benefits, a residual value must be charged.

The process is simple and tax-efficient! Here is how it works at Payflip. 👇🏼


The evolution of our process : Simplified administration ✨

We're excited to announce that residual value processing is now fully automated. 🥳

Instead of sending separate monthly Excel files at the beginning of each month, all residual values are now seamlessly integrated into your regular monthly payroll files, using your configured wage codes.

How it works 💡

When a device reaches the end of its rental period :

  • Our system automatically calculates the 20% residual value of the initial device price

  • A benefit in kind (20% of initial device value) is automatically reported in your monthly payroll file

  • Uses existing wage codes from payroll settings

  • Employee pays social security (13.07%) and withholding tax (20-40%)

  • No additional net payment required

Example calculation 🔢

For a €1,000 device:

  • Residual value: €200 (20% of initial value)

  • Applied automatically in payroll

  • Employee cost: ~€87.14 (€26.14 social security + €61 withholding tax)

Next steps for employees 🎉

Once the rental period ends and the residual value is processed, employees can immediately order new devices through Payflip.

Questions? We are just a chat away! 🔵



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