This article explains what the 0.002% daily flat rate for journeys between home and first place of work is, under what conditions it can be applied and how to map it in Personio Payroll. 

What is the 0.002% daily flat rate?

If the employee is also allowed to use the company car for journeys between home and the first place of work, this advantage is assessed in addition to the benefit of use for private journeys according to a separate calculation scheme. There is the option of choosing between two methods: 

• 0.03 % monthly flat rate: The non-cash benefit is calculated at a flat rate for the entire month. Regardless of how often the vehicle was actually used for commuting.
• 0.002 % daily flat rate (individual assessment): The non-cash benefit is calculated on the basis of the days actually driven. This method can be advantageous if the employee only uses the vehicle for the way to work in an exceptional way. 

The decision as to whether the 0.03% monthly lump sum or the individual valuation is to be used for the calculation must be made uniformly for the entire calendar year. This also applies if you change vehicles during the year. A monthly change between the two methods is not permitted.

Formula for calculating the 0.002% daily flat rate:

Non-cash benefit = 0.002% x gross list price x distance kilometres x number of journeys

The 0.002% rule for the possible daily calculation of the non-cash benefit for journeys between home and the first place of work is BMF letter v. 03.03.2022 .

Who is allowed to choose this method?

The employee can choose whether the non-cash benefit for the journeys between home and the first place of work is calculated with the monthly flat rate or by means of individual valuation for the entire calendar year. In the wage tax deduction procedure, the employer is obliged to carry out an individual valuation at the request of the employee, unless otherwise provided for in individual contracts or collective agreements and the employee provides the necessary information and evidence of the actual journeys. 

The rate is capped at a maximum of 180 trips on an annual basis, even if several company cars are used during the year.

Comparison between 0.03% monthly flat rate and 0.002% daily flat rate

0.002 % daily flat rate in Personio Payroll manage

Restrictions on production

The company car agreement widget automatically calculates the non-cash benefit for the journeys between home and the first place of work according to the 0.03% monthly flat rate. The widget actual cannot calculate the 0.002% daily flat rate after the individual evaluation of the journeys, as the actual journeys must be recorded for this. If your employees want to use the valuation of trips, an additional wage type must be created and a separate manual calculation must be carried out. 

Since this is a manually maintained wage type, the difference in the assessment basis (BMGL) for sales tax for this wage type is not automatically shown in the accounting report. Please take this VAT effect from the provision of company cars into account independently.

Set up a 0.002% daily flat rate 

Create salary type

In the first step, create a corresponding wage type for the non-cash benefit. After creating the wage types, contact our Payroll Support teams so that the final setup can be completed in the background. 

For more information on setting up wage types, see our Related articles. 

Define your booking setting

After feedback from our Payroll Support teams that all wage types have been set up, they must be assigned to a G/L account in the posting settings. This involves the following steps:

1. Navigate to the section Manage payroll >.
2. Click Accounting report > non-cash benefit.
3. Search for the appropriate wage types.
4. Enter the G/L account.
5. Click Save. 

For more information on the accounting report, please refer to ourRelated articles. 

Creating the company car

First, create a company car as usual in the employee profile via the company car agreement widget. 

You can find more information about creating a company car in our Related articles.

Calculation of the non-cash benefit

Your employee is obliged to record monthly records accurate to the calendar day and transmit them to his employer. 

Determine the non-cash benefit based on these records. The corresponding formula can be found in the upper section. Then maintain this amount in the tab Remuneration of the employee profile.

You can find more information about salary components in the employee profile in ourRelated articles. 

Evidence requirement

The following applies to the 0.002% daily flat rate rate:

• The records of the actual journeys must be taken into the payroll account and kept. Without certificate, the 0.03% monthly flat rate is to be applied as an alternative.
• The chosen method applies uniformly to the entire calendar year; a monthly change between 0.03% and 0.002% is not permitted.
• The rate is capped at a maximum of 180 trips per year, even with several company cars per year.

FAQ

Can I use the 0.002% method for just a few months?

No. The choice of calculation method applies uniformly for the entire calendar year. It is not permissible to switch between the 0.03% monthly flat rate and the 0.002% daily flat rate within one year.

Does the cap apply to 180 trips per vehicle or per employee?

The cap applies per employee and calendar year – even if several company cars are used during the year.

What happens if an employee does not submit records?

Without certificate of actual driving days, the 0.002% method is not allowed. In this case, the 0.03% monthly flat rate must be applied.

Does this process also apply to preliminary payroll accounting or DATEV customers?

No. The described process for a separate wage type applies exclusively to Personio Payroll.

Do I still need to fill in the company car agreement widget?

Yes. The company car agreement widget is still needed to correctly calculate the non-cash benefit for private trips (1% rule). The 0.002% daily flat rate is also shown via the separate wage type.