It's up to each company to decide whether the products or services they purchase can be purchased with a salary deduction and also what type of salary deduction that will be applied. Velory provides information to companies about the purchases their employees have made in the platform, and how the purchases relate to assigned budgets. With the data, the company's finance department can more easily adjust salaries in a cushy way.
Salary deductions from a tax perspective
- In the service, an employee can choose the desired model of laptop, mobile phone, tablet, smartwatch and/or accessories.
- The company's budget may limit the employee's choice to certain specified models and price ranges.
- If the employee is offered to choose a model that is more expensive than the model specified by the company in the service, the excess cost shall be debited as a salary deduction.
Electronic equipment that an employee receives from their employer which the employee can take home and use privately outside working hours is usually perceived as a benefit (ie salary) but is exempt if:
1. The product/service is of essential importance for the employee to be able to perform his or her duties.
2. The benefit is of limited value to the employee.
3. The benefit cannot be separated from the benefits of employment without difficulty.
The employee's choice of equipment
- According to the above, the choice of electronic equipment within the limits (budget) specified by the employer is unproblematic, ie it does not constitute a benefit.
- If the employee chooses equipment that is more expensive (above the budget), the question arises as to whether it's of significant importance. If the equipment is not of material importance, it's recommended that excess amounts should be taxed on benefits.
- The employee and the employer can together agree to make a gross salary deduction, but this deduction will only be noticeable if the acquired equipment is not taxed on benefits. If benefit taxation takes place, the effect will be the same as a net salary deduction.