Benefits Compliance Tracker
Efficiency and compliance in the management of benefits in kind
Manage benefits in kind smartly. Avoid risks.
Benefits in kind (benefits) for employees and business associates are a common means of retaining staff and customers. However, the correct recording and evaluation of these benefits poses considerable challenges for many companies: from choosing the right flat-rate rule for wage tax and social security purposes (flat rate according to § 37b EStG vs. flat rate according to § 40 (2) EStG), to correct corporate income and value added tax (VAT) assessment, to complete and audit-proof documentation.
Your Advantages
Increased efficiency
BCT significantly minimizes the workload for your payroll and tax department by automating and optimizing manual processes. The necessary information is requested directly from the source, which minimizes the time required to clarify facts. Since the payroll output is provided to you as an importable file for your payroll system, your payroll department is also relieved of as much work as possible.
Tax optimization
By making optimal use of tax-free thresholds and tax allowances, BCT reduces your overall tax burden. The management dashboard also provides you with all relevant information and KPIs at any time, enabling you to efficiently manage benefits in your company.
Compliance
BCT increases overall tax compliance and reduces the risk of errors and penalties through comprehensive and accurate documentation of all relevant data. The detailed master file enables you to prove the correct tax treatment of benefits in kind at any time, e.g., in the context of external wage tax audits or general tax audits.
Tax compliance for benefits – it's that easy
BCT has a modular structure to meet the diverse requirements of different types of benefits in kind. Our three standard modules are gifts, hospitality, and events. Within the workflow, specific checks are performed at the module level for each type of benefit in kind, followed by a comprehensive evaluation across all modules. The modules can be selected independently of each other as required. For company-specific requirements that are not covered by the existing modules, it is always possible to develop individual modules and integrate them seamlessly into the entire workflow.
01
Data collection
All relevant content for the tax classification of a benefit in kind is collected using specialized Microsoft Forms questionnaires. There are different forms for gifts, hospitality, and events.
02
Data processing
A submitted form triggers a Power Automate workflow that checks the content for completeness and plausibility, as well as specifically for the type of benefit in kind. Decision trees in the workflow ensure that all benefits in kind are correctly recognized. A monthly final and comprehensive review ensures that tax advantages are optimally utilized and compliance regulations are adhered to.
03
Data results
- Master file: enables continuous documentation of all benefits in kind granted in a year. In addition, important KPIs for management are displayed in a Power BI dashboard based on this.
- Payroll output: Monthly report as an import template for payroll accounting, containing taxable benefits in kind at employee level.
- Accounting output: Monthly report showing the necessary corrections for the correct treatment of VAT and corporate income tax.
