When it's time for your employee to leave the company, we want to make sure everything's crystal clear about your Payflip benefits settlement. Here's everything you need to know about how we calculate what happens with their choices when they depart.
General rules 🎓
The past is the past and stays the past: choices that are fully settled in the past won’t be taken into account in the exit calculation. So only current year choices + long-lasting benefits from previous years count.
Flex settlement ≠ MB settlement: We love both, but not together. We keep the final results of these 2 reward systems separate.
Financing with multiple budgets: Earned budgets (bonus, lump sum) > non earned budgets (EYP). When a choice is funded with a combination of both types of budgets, we’ll first try to deduct the open amount to the earned budget before jumping to a non earned budget.
What this means for your employees 💡
✅ Employees only pay for benefits they actually used
✅ Everything is calculated fairly and transparently
✅ The employer recovers their investment in the chosen benefits
✅ The settlement is included in the final payroll processing of the employee
The 7 categories we look at ✨
When calculating the exit settlement, we examine 7 different types of benefits. Here's how each one works:
1️⃣ Cash reimbursements
Benefits they paid for themselves and got reimbursed
What we count: Only reimbursements that have already been processed through the payroll by the exit date of the employee.
Important: If a reimbursement hasn't been processed yet when the employee leaves, it won't be included in their exit calculation.
Examples:
Private transport costs
Pension savings contributions
Example calculations
Exit date 5/8/2025. Right to EYP.
1/5/2025: Choice for reimbursement international fuel costs (paid out). Budget impact 250 EUR.
Total cost in exit calc? 250 EUR.
1/8/2025: Choice for private transport (not paid out). Budget impact 150 EUR.
Total cost in exit calc? 0 EUR.
1/6/2025: Choice for pension savings (paid out). Budget impact 1077.71 EUR.
Total cost in exit calc? 1077.71 EUR.
If employee is not entitled to pro rata EYP upon exit
If employee is not entitled to pro rata EYP upon exit
What needs to happen: we need to reverse the earlier paid out gross amount in the payroll so the value for it is not taken into account in the exit calculation.
Why does this need to happen: otherwise employee will have paid more in net upon exit than he received earlier in the year with the reimbursement.
Example calculations
Exit date 5/8/2025. No right to EYP.
1/3/2025: choice for pension savings.
Value: 990 EUR
Budget impact: 1077.71 EUR (990 + 8,86% employer NSSO)
Employee gets reimbursement in March 2025.
Gross amount: 990 EUR
Net amount: +- 465 EUR
Employee leaves in August with no EYP.
No EYP so deduction of 1077.71 EUR net on departure holiday pay.
→ Employee only received 465 EUR net in March…
2️⃣ Monthly cash subscriptions
Benefits they paid for monthly and got reimbursed monthly
What we count: Only the months where reimbursements have already been processed through their payslip.
Example:
Housing costs (if they chose this benefit in January and leave in August, we'll count 7 months of reimbursements)
Example calculations
Exit date 5/8/2025. Right to EYP.
10/1/2025: Choice for housing costs. Monthly budget impact 500 EUR.
Total cost in exit calc?
7 fulfilled payroll orders so 500 x 7 = 3500 EUR.
1/5/2025: Choice for housing costs. Monthly budget impact 1000 EUR.
Total cost in exit calc?
3 fulfilled payroll orders so 1000 x 3 = 3000 EUR.
3️⃣ Subscriptions
Monthly services you pay for directly as an employer
What we count: We calculate the exact cost based on the days the employee actually used the service.
Examples:
Bike lease
Health insurance
How it works: If they started a bike lease in April and leave in August, we'll calculate the cost for exactly 489 days of usage, not the full contract period.
Example calculations
Exit date 5/8/2025. Right to EYP.
Choice for bike lease. Start date 3/4/2024. Budget impact 3600 EUR.
Total amount of days contract period= 1096
Days between start & exit date = 489
Total cost in exit calc?
3600 / 1096 * 489 = 1606.20
Choice for general hospi. Start date 1/1/2025. Budget impact 1200 EUR.
Total amount of days contract period: 365
Days between start date & exit date: 216
Total cost in exit calc?
1200 / 365 * 216 = 710.14
4️⃣ Expenses
Benefits that remain valid until their contract ends
What we count: The full cost of the benefit for the entire contract period.
Examples:
Car upgrades
Car options
Example calculations
Exit date 5/8/2025. Right to EYP.
1/3/2023: Choice for car upgrade 48 months. Total budget impact 4800 EUR.
Total cost in exit calc? 4800 EUR.
1/5/2025: Choice for car upgrade 60 months. Total budget impact 4500 EUR.
Total cost in exit calc? 4500 EUR.
5️⃣ Extra holidays
Additional vacation days they've chosen
What we count: Only the vacation days they actually took.
How it works: If you chose 5 extra days but only used 3, we'll only count the cost of those 3 days.
Example calculations
Exit date 5/8/2025. Right to EYP.
1/2/2025: Choice for 5 extra vacation days. Total budget impact 500 EUR.
Admin reports employee has used 5 days.
Total cost in exit calc? 500 EUR.
1/7/2025: Choice for 4 extra vacation days. Total budget impact 600 EUR.
Admin reports employee has used only 1 day.
Total cost in exit calc? 600 / 4 * 1 = 150 EUR.
6️⃣ Assets without residual value
Items the employer bought for the employee with no resale value
What we count: The full purchase cost.
Examples:
Charging stations for electric vehicles
Example calculations
Exit date 5/8/2025. Right to EYP.
1/5/2024: Choice for charging station 48 months. Total budget impact 5000 EUR.
Total cost in exit calc? 5000 EUR.
1/7/2025: Choice for charging station 48 months. Total budget impact 3500 EUR.
Total cost in exit calc? 3500 EUR.
7️⃣ Assets with residual value
Items the employer bought that have a resale value
What we count: The full purchase cost plus any applicable residual value.
Examples:
Smartphones and multimedia devices
Desk equipment
How it works: If the employee got a €1,000 smartphone, we'll count the full cost plus 20% residual value (€200) in their exit calculation.
Example calculations
Exit date 5/8/2025. Right to EYP.
1/3/2024: Choice for smartphone 24 months. Value 1000. Total budget impact 1073,90 EUR.
Total cost in exit calc? 1073.90 EUR + Residual value of 1000 * 20% = 200 EUR.
1/6/2025: Choice for desk material. Value 3000 EUR. Total budget impact 3972 EUR.
Total cost in exit calc? 3972 EUR + Residual value of 3000 * 20% = 600 EUR.
Questions? 🤝
If you have any questions about an exit calculation, don't hesitate to reach out to our Support team through the chat. 🔵