Digital meal vouchers made simple
Rethink employee benefits and optimize your employees' monthly salary with up to €6.57 per meal.
A few simple steps to your new Employee Benefit
Whether in a restaurant, café or home office, employees submit lunch receipts and receive a tax-free or flat-rate taxed meal allowance, either as an attractive salary increase or salary conversion. Circula Benefits, our digital meal vouchers, are included in Circula’s professional plan.
Turn lunch into a benefit for your employees and take advantage of the tax benefits that come with it
Unredeemed meal allowances do not cost you any money
Digital meal allowances can be redeemed everywhere
No more grey areas in controlling, clarity for your employees
According to current German tax jurisprudence
Through the digital calculation and processing of the meal subsidies
No logistical effort, implementation is possible in a few days
What is net gross salary optimization?
According to the Income Tax Act, optimizing employee net salary is done using tax-free or flat-rate taxed allowances from the state. These are granted in total for a variety of so-called benefits, e.g. meal and travel allowances. There are two ways to provide your employees with monthly meal allowances during working hours: as a salary increase favorable to you as an employer, or as a salary conversion. There’s a number of different requirements that need to be examined in every individual case. Here’s how it works and what you, as an employer, and your employees should pay attention to.
More gross and net salary: the employee is paid a monthly tax-free or flat-rate taxed allowance on top of their regular gross salary of up to €98.55. With this model, the employer is able to save taxes and social security payments compared to the classic salary increase. A maximum of 15 meals can be deducted as benefits, and granted as subsidies per month, with one meal per working day. This means that the employee would have a higher net income at the end of the month.
More net from the gross salary: the monthly gross cash wage is reduced by up to 98.55 euros at the beginning. This reduces the monthly taxes and social security payments. With the following month’s monthly statement, the tax-free or flat-rate taxed meal allowance is paid for the meals which were submitted. A maximum of 15 meal subsidies, i.e. meals on working days, are granted by the state.
Meal vouchers - Rules for employees
The employee is liable for the improper application of meal allowances. Therefore, all rules should be known. Check out what your employees should definitely pay attention to here.
How does Circula Benefits work?
It's very simple: in just a few steps, you submit your receipts as usual. We’ll take over the verification of the proper application, according to the current legal requirements. As an employer, you export a tax file to your payroll accounting system once at the end of the month. That's how fast benefits are.
Do you have any questions?
Circula Benefits is available to all Circula Professional users at no extra cost. Our professional plan starts at €100.00 per month and includes 10 user licences. For more information on pricing, click here.
Yes! Using Circula Benefits is possible under the same conditions even while working from home.
In its decision of 20.08.1997 (BStBl. II p. 667), the BFH ruled that employers and employees may, by mutual agreement, replace cash wages with a benefit in kind without further ado.
Meal allowances that do not exceed the threshold amount can be assessed as a meal taken by the respective employee at the official non-cash remuneration value and taxed at a flat rate of 25%. In the case of lump-sum taxation, the monetary benefit is exempt from social insurance § 1 para. 1 SvEV. The amount in excess of (a maximum of) EUR 3.10 is a tax-free allowance from the employer. Additional payments made by the employee for the meal are to be credited against the lump-sum taxable non-cash benefit.
No. As the employee is entitled to a per diem allowance when travelling, benefits cannot be used on travel days. Business travellers can account for their additional meal expenses and per diems via Circula Expenses as usual.
Receipts for a specific month must always be submitted by the third day of the following month in order to be effective in the calculation of the allowance. This means that all receipts from July, for example, must be submitted in the Circula app by the 3rd of August.
We make employees benefit
Use the tax benefits to optimize your employees' wages and reduce your costs at the same time.