Flexibility is not just a benefit, but often a requirement for both employers and employees. The cafeteria plan, a system where employees can choose from various benefits, perfectly meets this need. One of the most popular choices within such plans is bike leasing, an option that promotes sustainability, health, and efficiency. In this blog post, we'll dive deeper into how to implement bike leasing through a cafeteria plan and what benefits it offers.

What is a cafeteria plan?

A cafeteria plan allows employees to convert a portion of their gross salary, bonuses, or vacation pay into one or more alternative compensations or benefits. This flexible benefits plan enables employees to tailor their compensation package to their personal needs and lifestyle. The biggest advantage of such a cafeteria plan? Higher job satisfaction and engagement.

Bike leasing, a comprehensive choice

Bike leasing is an especially attractive option within the cafeteria plan, particularly given the growing focus on sustainability and healthy living. Since last year, bike leasing by companies has even doubled! Employees who choose bike leasing use a portion of their gross salary to cover the costs of a bike. This not only offers them tax benefits but also the opportunity to contribute to a greener world and improve their health by exercising more.

Employees do not purchase a bike themselves but receive one from the employer, who leases the bike from Lease a Bike. Specifically, your company enters into a contract with us, and your employees are free to choose where and what brand or type of bike they take.

Significant financial advantage

No social security contributions or payroll tax need to be paid on the bike leasing amount by either the employer or the employee, provided the employee also uses the bike for commuting. There is no deductible VAT for the employer on bike leasing. No employer social security, no employee social security, and no payroll tax need to be paid on the bike leasing amount! This means that an employee can afford a bike that is more than three times as expensive as if they were to buy the same bike with their net salary.

What exactly are the benefits for employers?

Enrich your cafeteria plan with bike leasing

Tax efficiency

By allowing employees to convert a portion of their gross salary into non-cash benefits, you manage your labor costs better. You save on social security contributions, depending on local legislation and the structure of the plan.

Additionally, employees enjoy significant tax benefits. Leasing a bike is deducted from the gross salary, resulting in a lower taxable income. A win-win situation!

Healthy and happy employees

Many cafeteria plans offer health and wellness benefits, such as a gym membership or bike leasing, which contribute to better physical and mental health for employees. The result? Less absenteeism and increased productivity.

Employer branding

In a competitive job market, a cafeteria plan makes an employer more attractive. Potential employees often see such plans as a sign that an organization cares about its staff and is willing to invest in their well-being and satisfaction. Moreover, a high-quality bike is expensive to purchase. Bike leasing makes it more accessible for employees to use a high-quality bike without a large upfront expense.

Implementing bike leasing in your company

For companies looking to integrate bike leasing into their cafeteria plan, partnering with a specialized provider like Lease a Bike is essential. We not only assist in setting up the infrastructure for the cafeteria plan but also offer support in managing the bike leasing, from choosing the bike to maintenance and insurance. Thanks to our digital platform, the entire process is automated, and you have little to worry about regarding its operational aspects.

Enrich your cafeteria plan with bike leasing

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