Nowadays, flexible mobility solutions are more in demand than ever. Especially in urban centers, where parking space is scarce and environmental awareness is high, employees are looking for alternatives to classic car ownership. This is exactly where the car subscription comes in as an innovative employee benefit and opens up new horizons for companies and employees alike. Instead of long-term contracts and high acquisition costs, it allows employees to have access to different types of vehicles depending on their needs. Whether it's a maneuverable small car for everyday urban life or a spacious station wagon for a family trip - the choice is almost unlimited. Thanks to contract terms starting at 6 months, employees are completely independent. In addition, all costs incurred are already included in the monthly flat rate. This includes not only insurance and vehicle-related taxes, but also maintenance work and possible repairs.
A car subscription provided by the employer is considered a monetary benefit for the employee for tax purposes. This means that the monetary benefit of the vehicle provided for private use is generally viewed as taxable wages. This monetary benefit must be taxed by both the employer and the employee.
1 percent rule
With the 1 percent rule, one percent of the vehicle's domestic list price at the time of initial registration is set as a monetary benefit each month. This amount is then taxed at the employee's individual tax rate.
Alternatively, the monetary benefit can also be determined using a proper logbook. All professional and private trips are precisely documented in order to precisely calculate the private usage benefit.
Special features of electric and hybrid vehicles
Special tax regulations apply to electric and hybrid vehicles in Germany to promote the use of more environmentally friendly vehicles. The monetary benefit is set lower here. For a gross list price of up to €60,000, the monetary benefit for electric vehicles is only 0.25% per month. Above this it is calculated at 0.5%. For plug-in hybrids, this rate is 0.5 percent with no price limit.
uRyde X car subscription
The car subscription can be easily provided via the uRyde mobility budget and combined with a variety of other services. For example, employees can decide whether they want to use their budget to book over 50+ mobility services and/or for a car subscription. The employee can apply for the car subscription directly via the uRyde app and manage and pay for it together with the mobility budget.
No worries about management and maintenance
As an employer, all standard tasks are taken care of for you, such as approval and contract processing as well as tax settlement, regardless of whether salary conversion or salary subsidies. The latter is automatically prepared for your payroll department and made available as a tax file. You can easily control, monitor and process all processes and services using the uRyde dashboard.
Example of use from practice
You provide your employees with the uRyde mobility budget for a car subscription as well as all other mobility services. One of your employees enjoys cycling when the weather is good. In the summer months, he uses his mobility budget to rent a bike to get to work. In the cold winter months, however, he prefers to take a car and takes out a flexible car subscription with his mobility budget for this time.
In a nutshell - your advantages with a car subscription with uRyde
- Holistic employee mobility - everything centrally in one app
- Flexible use according to the individual needs of your employees
- Mobility budget for car subscription and/or all mobility services, such as public transport, Germany ticket, car sharing, bike sharing, ride sharing, taxi, e-scooter, (e-) refueling and much more.
- Fully automated authorization check, approval of car subscription applications and management of individual budgets at employee level via the uRyde dashboard
- Simple import of tax-relevant data into your existing HR and payroll processes
- Tags: Mobilitätsbudget