Company cars and benefits in kind.

Do you provide company cars to your employees?

If you do, and if the employees use their company car for personal purposes, this is a benefit in kind. On #frenchpayroll benefits in kind are subject to social contributions. They must appear on the pay slips.

When the car is leased, the value of the benefit can be calculated in 2 ways:

  • Lump sum:
    • If the personal gasoline expenses are paid by the employee, the monthly value of the benefit in kind is 30% of the monthly cost of the lease including the lease, the maintenance and the insurance.
    • If the personal gasoline expenses are paid by the company, the monthly value of the benefit in kind is 40% of the monthly cost of the lease including the lease, the maintenance, the insurance and the gasoline expenses.
  • Real cost:
    • The annual value of the benefit in kind is calculated with this formula:
[Global cost (lease + maintenance + insurance) * kilometer driven for personal purposes/total kilometers driven over the year] + personal gasoline expenses paid by the employer.

 

The company chooses the way by which the benefit in kind is calculated. This choice is a permanent one.