With both the job market and real estate markets changing rapidly, companies are constantly looking for ways to support their employees while taking advantage of tax benefits. The introduction of programs like MyFlexHome shows that there are viable ways to do this. However, if you think tax-free rent subsidies are the end of the line, you’re wrong. There are several other ways employers can minimize their tax burden while adding value for their employees.
Company pension scheme as a win-win situation
A proven approach to tax optimization is to set up a company pension plan. In many countries, contributions to company pension plans are tax-deductible. This not only reduces labor costs for the employer, but also increases the net income of the employees.
Further training costs as an investment and tax savings
Training or continuing education is not only an investment in your employees’ skills, but is often also tax deductible. Costs for courses, training and specialist books can often be claimed as business expenses, reducing the company’s tax burden.
Apart from the tax-free reimbursement of rental costs, tax law often also offers the possibility of tax-free or at least tax-reducing travel allowances. In this way, you not only support the mobility of your employees, but also save taxes.
Remuneration in kind and vouchers
Instead of giving raises, which would be taxable to both the employer and the employee, you can offer non-cash benefits such as meal vouchers, gym memberships or other non-monetary benefits. These are often tax-free up to a certain amount and increase employee satisfaction.
Investing in the health of employees is not only an investment in their satisfaction and productivity, but can also offer tax benefits. Many countries allow certain health measures to be deducted as business expenses, which reduces the tax burden on the employer.
The tax-free nature of rental subsidies through programs like MyFlexHome is a fantastic start, but far from the only way to take advantage of tax benefits as an employer. Through a combination of approaches, companies can significantly reduce their tax burden while creating an attractive and supportive environment for their employees.
So it’s worth considering a wide range of tax-advantaged opportunities and strategically incorporating them into your HR management. This way you create a real win-win for both sides.