Employee benefits (3)

Voluntary health insurance premiums

Contributions made by the employer on behalf of the employee for voluntary health insurance (according to law no. 95/2006) are allowed as deductible expenses in the calculation of taxable profit, up to the amount of 400 euro/tax year, for each employee.

The same principle applies as for voluntary pensions. The employer pays the employee’s contribution to health insurance up to a maximum of 400 euro/year/employee. If in a fiscal year the contributions for voluntary health insurance of employees exceed 400 euro, when this limit  is exceeded, the amounts are considered benefits in kind, will be assimilated to salaries and will bear all the contributions of the employee and the employer and income tax.

 

Payment of employee transport

Payment for the employee’s transport to and from work by the employer is not taxable and does not incur any contribution insofar as this is provided for in the individual employment contract.

Thus, in the individual employment contract, the employee will be stipulated that the transport to and from work will be settled in the form of a discount for the season tickets for the means of transport used to travel to and from work or for the fuel used to travel in the employee’s own car.

If the employee has an amount provided for in the employment contract for the payment of fuel used, he/she will have to make a statement of expenses with fuel receipts as justification.

If the payment for transport to and from work is not provided for in the employment contract, the amount will be included in the calcula.