Whether the so called Kilometer Bonus is paid Net or Gross.
The so-called mileage bonus, which is an additional financial benefit paid to employees for mileage traveled in connection with their work, can be paid both gross and net. Depending on the employer's decision and the arrangements in the employment contract, this bonus may be subject to personal income tax (PIT) and Social Security contributions (if it exceeds certain amounts), or paid to the employee as a net amount, i.e. after all taxes and contributions have been deducted.
In the case of a bonus paid gross, the employee is required to settle with the tax authorities and Social Security on his or her own, which may entail additional duties and costs. A bonus paid net, on the other hand, allows the employee to receive a set amount without additional fees and paperwork related to tax settlement.
Therefore, before deciding on a form of mileage bonus payment, both employer and employee should carefully analyze the benefits and costs associated with both options. It is also advisable to consult a tax or legal advisor to choose the most favorable solution for both parties.
It is also important that all mileage bonus arrangements be clearly defined in the employment contract to avoid misunderstandings and disputes in the future. In this way, both the employer and the employee will be sure of the terms and form of payment of the bonus, which will contribute to the harmonious and efficient operation of the company.