The travel allowance is a smart way for employers to provide their employees with a tax-free allowance in addition to their salary and to support them financially.
In this article, you will find out how exactly your company can save wage tax with the job ticket allowance, how you can use the job ticket and the benefit in kind, and how the tax-free employer allowance is also worthwhile for employees.
Content
In today's world, where sustainability and reducing the burden on the environment are becoming bigger and bigger issues, measures to promote environmentally friendly mobility are becoming increasingly important. One such measure that is attractive to both employees and employers is the Jobticket. But how exactly does the job ticket work, how does it differ from the travel allowance (Fahrtkostenzuschuss), what are the tax advantages and how can employers as well as employees benefit from this offer? In this article, we address these questions and provide information and insights for employers in 2023.
Create the work place of tomorrow with NAVIT. We are happy to support you with designing the best mobility solution for your company. Get in touch with us!
Contact us
Jobtickets are personal season tickets for public transport ordered by employers from the local transport association and provided to their employees.
The job ticket allows employees to use public transport to get to work without having to pay the full cost. As it is a monthly ticket, the job ticket can also be used privately.
In addition to relieving the financial burden on employees, this also promotes an environmentally friendly way of mobility and can contribute to reducing traffic and emissions, especially in cities.
The job ticket is an employer subsidy that is linked to the employment relationship with the company.
How does the Jobticket differ from the travel allowance?
The legislator distinguishes between a travel allowance (Fahrtkostenzuschuss) and a Jobticket. If the travel allowance is used for journeys by public transport, it is considered a Jobticket.
If, on the other hand, the travel allowance is used for other means of transport, such as one's own vehicle, it remains a travel allowance.
A key advantage of the job ticket is its tax treatment. Since 2019, employers can provide their employees with job tickets up to a monthly limit of 50 euros tax-free.
This means that employees can receive the value of the job ticket up to this limit without deductions.
This tax advantage not only makes the job ticket attractive for employees, but also offers employers the opportunity to strengthen their employee loyalty and at the same time benefit from tax advantages.
By comparison, it would cost employers 85.75 euros to give their employees a 50 euro net salary increase.
Interestingly, employers can not only grant the job ticket but also other benefits in kind (Sachbezüge) at the same time. This could include, for example, meal vouchers or other benefits.
However, it is important to note that the exemption limit of 50 euros applies separately to the benefit in kind. This means that employees can benefit from both advantages without one affecting the other.
Jobticket also possible as salary conversion
Since 2020, the job ticket can be exchanged for gross salary under a salary conversion scheme (Gehaltsumwandlung).
For the taxation of the Jobticket, this means that a flat-rate wage tax is levied on the employer allowance - either at a rate of 15% (with an entry by the employer in the annual wage tax certificate and credit against the employee's flat-rate commuting allowance) or at a rate of 25% (without an entry in the annual wage tax certificate, without credit against the flat-rate commuting allowance).
See: § 40 para. 2 sentence 2 no. 1 and no. 2 EStG.
Our mobility experts at NAVIT would love to share their knowledge with you about the new mobility product. Feel free to get in touch with us!
Get info
In addition to the job ticket, companies have the option of offering their employees a tax-free travel allowance.
This mobility allowance amounts to up to 0.30 euros per distance kilometre and is tax-free if public transport is used exclusively for this purpose. Other travel allowances, where the employer subsidises the employee's costs of travelling with their own vehicle, are taxable (EStG § 9).
Companies can use this measure to reduce the financial burden on their employees when travelling to work and at the same time benefit from the tax incentives.
Employers do not have to include the job ticket in the monthly 50 euro allowance.
Any lump-sum taxation of the monthly ticket is also omitted. This considerably reduces the administrative effort and costs - and creates another incentive for companies to stand out on the job market for applicants.
Providing a tax-free travel allowance can bring a number of benefits for employers.
Firstly, it can increase the attractiveness of the company as an employer. Employees appreciate employers who take care of their financial burden and their well-being.
On the other hand, the tax-free travel allowance opens up the possibility for employers to reduce non-wage labour costs and at the same time demonstrate their social responsibility in terms of environmentally friendly mobility.
Last but not least, it helps companies to encourage employees to return to the office on a regular basis with an attractive incentive.
Employees benefit from a tax-free travel allowance in many ways. Firstly, financial burdens related to the commute to work are reduced. This can improve the individual financial situation and give employees more financial leeway in times of rising prices.
Secondly, this employer subsidy enables the use of environmentally friendly means of transport, which not only relieves traffic in cities, but also helps to reduce emissions.
The tax-free job ticket can also be part of a broader mobility budget that offers different transport options for employees. This budget can include not only the job ticket, but also bike leasing, car sharing or other sustainable mobility options. This allows employees to choose the option that best suits their individual needs.
Overall, the Jobticket is not only a way to make it easier for employees to get to work, but also offers financial and tax advantages for employers. It not only promotes environmentally friendly mobility, but also strengthens the attractiveness of the company as an employer. By providing tax-free benefits, employers can strengthen their employee loyalty and at the same time contribute to sustainable mobility. The combination of job ticket and travel allowance can be beneficial for employees and employers alike and contribute to a positive corporate culture that focuses on sustainability and employee satisfaction.
Flat-rate travel allowances: EStG § 9 Werbungskosten
Sign up for our newsletter to receive the latest insights about our mobility solution products like the 49 eurojob ticket.
