Employees who have not fully used their mobility budget at the end of the year, will receive this amount in pillar 3. How does this work exactly?
An expense 'Pillar 3 cash-out' is added for the remaining amount. You will see it appear in the overview of your employees' expenses.
What do you have to do?
Nothing! 🥳
We take care of this. At the end of the year, we create the cash-out for pillar 3. We do this mid-January, so your employees have some extra time to enter forgotten expenses from the past year.
Every year, we send out a reminder with the exact date on which this cash-out will be created.
All you have to do is send the cash-out expense to payroll at the end of the month like all the other expenses. The amount you see in this expense is before taxes. Pillar 3 is taxed at a special employee contribution of 38.07%.
💡 Tip: let your employees know in time that they need to add their final expenses before the cash-out date.
💡 Tip: let us know before the end of the year which employees will no longer be entitled to a mobility budget the following year.
❗️ Note: once the cash-out is created, employees can no longer add expenses to that year's budget. So let your employees know that they have to enter all their expenses before mid-January on a date in the past year.