One of the innovations involved in the economic maneuver is related to side benefits, that is, company interests. In fact, in 2024, employees with dependent children will be able to receive this type of “bonus”, the upper limit of which has been increased to 2 thousand euros, without the amount being counted in the declaration. For employees who do not have children, the limit will be one thousand euros. Families will be able to use the money to pay their rent, mortgage, and even household utility bills, but since this is a company benefit, it’s up to the employer to decide whether to pay the bonus.
Side benefit up to 2 thousand euros: requirements
As mentioned, company benefits, which can reach up to 2 thousand euros for workers with dependent children, are offered not only to employees but also to those with income similar to that of the employee, such as co.co.co. and project collaborators. If both parents are eligible workers, they will both be entitled to the maximum benefit, and therefore a bonus of up to 2,000 euros each, regardless of whether the child is dependent on only one or all of the parents. two. We remind you that if a child is under 24 years of age and has a gross annual income of 4 thousand euros, he is considered a “dependent” by the tax authorities. A child whose annual income is less than 2,840 euros is considered a dependent even after the age of 24.
Who is entitled to a bonus of up to one thousand euros?
This is different for employees without dependent children, who have a “half-and-half” limit on benefits compared to their colleagues with families. The maximum exemption ceiling was determined as one thousand euros for the same categories, therefore employees, co.co.co. and project collaborators. The requirements remain the same, the distinguishing factor remains the presence of dependent children. However, be careful, it should not be forgotten that since this is a company measure, there is no law obliging the employer to give this bonus. Often these are forms of social assistance provided in contracts, such as food stamps, or follow the initiative of the owner. Employers who plan to pay the bonus will be required to provide workers with documents regarding their dependent children and a signed declaration to be presented in case of a check.
The fringe benefit threshold, set by law at just over 258 euros, has been raised in temporary increments over the years by various governments, as predicted for 2024 by the Meloni government’s maneuver that also introduced a distinction between workers with and without children. Finally, we would like to remind you that if the amount of assistance that can be used for bills or housing expenses does not exceed the above-mentioned threshold, i.e. 2 thousand euros for workers with children and one child, it will not have any impact on the tax return. thousand euros for those who do not have it. If the side benefits provided exceed this limit, the entire amount, not just the excess part, will be taxed.
Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
