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A dream bike for every employee
In the case of salary conversion, the employee receives a portion of the contractually agreed salary not in cash, but as a payment in kind for the period during which the company bike is made available.
This means that a change is made by means of a supplementary agreement to the employment contract, in which the employee's future salary is reduced by a fixed amount (conversion rate) for the duration of the transfer of use.
This then results in the tax and contribution benefit for the employee.
In most cases, the imputed income is also subject to taxation. This is added to the monthly gross salary.
What does this mean exactly?
Gross monthly salary
+ taxation of imputed income
- Leasing rate
- All-round protection costs
= new gross monthly salary
- Taxes
- Taxes
- Taxation of imputed income
= net monthly salary
If you now compare the net monthly salary without the company bike with the net monthly salary with the company bike, you get the monthly costs for the company bike leasing.
Below are some explanations of terms.
Conversion Rate:
The conversion rate is the sum of the leasing rate and the cost of the selected all-round protection package, less any cost coverage by the employer The gross monthly salary is reduced by this conversion rate.
Taxation of the imputed income:
Depending on the form of the transfer by the employer, the use of the company bike is subject to taxation of the non-cash benefit. If a company bike is also provided for unrestricted private use as part of a salary conversion, the non-cash benefit must be taxed.
The non-cash benefit from company bike leasing is calculated at a flat rate of 1% of a quarter of the gross list price (RRP) rounded down to a full €100, added to the taxable income and also taxed. This is also referred to colloquially as 0.25% taxation. The amount for the imputed income can be found in the calculation overview on the calculator page.
Please note that the leasing instalment shown in the bike leasing calculator is a non-binding calculation example. This calculation in the bike leasing calculator is indicative and may in some cases differ from the final amount to be paid. Lease a Bike does not guarantee any future changes in the tax system. Therefore, please note that the expected purchase price at the end of the leasing term, which is stated in the bike leasing calculator, is a non-binding guide value.
Once you have contacted us, we will offer you a non-binding consultation on company wheel leasing and possible implementation in your office.
We visited the largest health insurance company in Lower Saxony and talked to them about company bike leasing as an employee benefit. HR Manager Stefan Altmann reports on the process with Lease a Bike, the benefits and how AOK Niedersachsen can reduce commuting kilometers by car thanks to company bikes.
