The company pays up to 2 thousand euros per month to employees with children

Employers will be able to “reward” their employees by paying some of the mortgage interest on their first home, or even a few months' rent. And these benefit They will be completely tax-free if they respect the limit of one thousand euros for workers without dependent children and two thousand euros for those with children.

Pensions for April 2024 Here are the increases and arrears: calendar, payslips and when they are paid. Sums and simulations

In fact, the rule had already been included in the budget maneuver approved last December, but now operational indicators have arrived from the revenue agency.

Saleh, revenue circular

In short, the action can officially begin. In addition to mortgage interest and rent, employers will also be able to pay their electricity or gas bills. Always reach maximum amounts. On this point, the IRS circular is very clear. If the payment exceeds the ceiling of one or two thousand euros, taxes will be paid not only on the excess part of the benefit, but on the entire amount paid. Another important clarification concerns the precise concept of a first home in terms of installments covering mortgage interest and possibly rent. The IRS defines “first home” to mean your principal residence.

It is therefore the home owned by the employee, spouse or other family member, in which the employee and his family usually live and bear the expenses related to it. Therefore, rent costs or mortgage interest can only be paid for the home where the employee normally lives. Then there is another warning from the Tax Office regarding housing expenses that are reimbursed by the employer. The taxpayer will not be able to benefit from other benefits on these expenses. what does that mean? For example, mortgage interest paid by an employer cannot be deducted from income in the 730.

The Revenue Agency circular also intervenes in the taxation of performance bonuses. The budget law stipulates, in this case as well, that the percentage of premiums (other than benefits) be reduced from 10 percent to 5 percent for this year. An interest rate reduction that also applies to employees' participation in company profits.

the passage

The tax circular reminds us that the alternative tax applies in an amount of up to 3 thousand euros in total on the cash bonus paid to private sector employees who in the previous year declared a maximum income of 80 thousand euros. Finally, the circular regulates something completely new: the possibility for employers to pay insurance premiums by recovering up to 5 years of employee contributions for periods of non-work. This is a rule to close so-called contribution “loopholes” and perhaps allow employees to postpone their retirement for a few years. Refundable contributions must be included in the period from the worker's first payment to INPS before the last Budget Law came into force, up to today. The company is given the advantage of deducting subscription refunds from its revenues. In short, a process that can be a “win-win” for both the worker and the employer.

© All rights reserved

Read the full article on
Prophet