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Note
These functions are currently being rolled out and will be activated in phases for all accounts.Â
This article explains how to add and manage company cars for your employees.Â
Manage company cars in Personio Payroll
Personio Payroll allows you to automatically calculate and create the monthly benefit in kind that your employees receive from using a company car. A company car is assigned to an employee in Personio Payroll, and the corresponding company car agreement is created in the employee profile under the Salary tab. The company car agreements widget gives you an overview of the monthly amount.
Billing occurs through a fixed monthly flat rate based on the gross list price (BLP) of the vehicle and the factors, use for private travel, use for commuting to the first workplace, and any contribution already made by the employee.Â
Below, we explain how to create and manage a company car agreement and where company car amounts are displayed in payroll. For further context on company cars and applicable regulations, we also recommend our general article on the topic.
Product limitations
The company car function currently doesn't support the following cases:
- Logbook method: If you use the logbook method, the benefit in kind must be tracked manually and compensated through one-time or recurring compensation.
- Actual journeys between home and work: The method of calculating based on actual journeys between home and work is currently not supported.
- Travel to a second home: If documenting travel to a second home is necessary, the benefit in kind must be tracked manually in Personio and compensated via one-time compensation in addition to the agreement in Personio.
- E-mobility subsidy – charging of vehicles: If you have company car agreements that provide for charging, the benefit in kind must be tracked manually in Personio and compensated via one-time compensation in addition to the agreement in Personio.Â
- E-mobility subsidy – disadvantage compensation for vehicles purchased before 2019
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Salary waiver and co-payment: This function is currently unable to differentiate between salary waivers and co-payments. The following are supported and unsupported combinations:
- Supported: A salary waiver contribution that is lower, equal to, or higher than the total benefit in kind for private travel and travel between home and the first workplace.
- Supported: An employee's own contribution that is less than or equal to the total benefit in kind for private travel and travel between home and the first workplace.
- Not supported: An employee's own contribution that is higher than the sum of the benefit in kind for private travel and travel between home and the first workplace.
- One-time or ad hoc employee compensation: If you have company car agreements that require one-time or ad hoc employee compensation, the benefit in kind must be tracked manually in Personio and compensated via one-time compensation in addition to the agreement in Personio.
- Multiple company car agreements at the same time: Currently, only one company car agreement can be set up for each employee. When adding a new agreement, you must terminate the existing one.
Manage company car agreements in the Salary tab
You can add, edit, clear, and terminate company car agreements in your employees' Salary tab. The following table explains how to proceed in various events, such as an employee's relocation:
Event | Action |
The agreement was accidentally created for the wrong employee or has an incorrect start date. | Delete agreement and add new. |
Error in the agreement details (for example, the license plate). | |
The employee changes jobs and no longer needs the company car. | |
The employee has moved and has a new address. |
Terminate the existing agreement and add a new agreement with new mileage details from the first workplace. |
The employee has switched to a new company car. |
Terminate existing agreement and add new one. |
Note:
Ensure you follow the applicable regulations when filling out the company car agreement. To find out more, read our article about company cars.Â
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Add a company car agreement
To create a company car agreement, follow these steps:
- Go to the employee profile of the relevant employee and open the Salary tab.
- Click on Manage in the company car agreements widget.
- Click Add agreement.
- Add the Utilization period. The end of the agreement is initially optional.
- Choose the applicable agreement details.
- Add the car details.
- If you answered Yes for any item in the Agreement details, provide additional information in Benefit calculation .
- Review the calculation details and click Save.
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Terminate a company car agreement
To terminate a company car agreement, you need to enter a termination date. The following options can be used:
- If the end date was entered when the agreement was created, the agreement will expire on the date you enter.
- If the end date has not yet been entered, open the agreement and click on the pencil icon next to the agreement ends, enter the date and confirm your entry. Note that this change is applied retroactively.
- If the end date is changed (for example, to an earlier date), open the agreement, and click on the pencil icon next to Termination date of agreement. Enter the date. Note that this change is applied retroactively.
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Edit a company car agreement
Note
Note that changes to an existing company car agreement will be applied retroactively from the start of the agreement.
To edit a company car agreement, follow these steps:
- Go to the employee profile of the relevant employee and open the Salary tab.
- Click on Manage in the company car agreements widget.
- Click on the company car agreement you want to change.
- In the agreement, click on the options button with the three dots at the top right and select Edit agreement details.
- Make the necessary changes.
- Click Save.Â
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Pause or delete a company car agreement
To pause or delete a company car agreement, follow these steps:
- Go to the employee profile of the relevant employee and open the Salary tab.
- Click on Manage in the company car agreements widget.
- Click on the company car agreement you want to change.
- In the agreement, click on the options button with the three dots at the top right and select Add pause to agreement or Delete agreement.
- Make the necessary changes.
- Click Save.Â
Company cars in Payroll and payslips
If a company car agreement has been added for an employee, this is also reflected in the payroll. You'll find:
- On the People tab: The total benefit in kind for private travel and travel between home and the first workplace, along with the employee's own contribution, is added to the gross salary. The agreement will also be listed under the changes.
- The employee's detail view: The recurring compensation company car is listed under Gross salary . The total benefit in kind and the employee's own contribution are also stated. Navigate to the agreement for more information.
- The payslip preview: Check it either in the detail view or in the Documents tab. The components of the company car agreement are listed individually.