Below we explain how you can activate the benefit and how the internet allowance is paid out.

• • Basics and interesting facts about the internet allowance
  • Activation for employees and configuration of the allowance
  • Integration with payroll accounting / payment of the internet allowance
    • Receive import file for the payroll program
  • Further information on the internet allowance

Basics and interesting facts about the internet allowance

You can use the internet allowance to subsidize your employees' ongoing internet costs. Up to a monthly limit of EUR 50, the reimbursement of costs is taxed at a flat rate (de: Pauschalsteuer) of just 25% and remains completely tax-free for your employees. You can freely determine the maximum amount paid out up to the maximum amount of the actual Internet costs (up to 50 euros). Invoices or receipts for the Internet costs do not have to be provided. However, the employee confirms by signing the supplementary agreement, which is automatically generated in the Probonio app, that they have incurred at least the specified costs for Internet use. The employer pays 25% tax on the amount stated by the employee for internet use. In addition, church tax and the solidarity surcharge must be paid on the flat-rate tax. Social security contributions doesn't have to be paid.

Activation for employees and configuration of the allowance

To provide an employee with the internet allowance benefit, you must first activate the benefit. To do this, open your menu at the top on the left and click on internet allowance.

Can't select the “Internet allowance” tab? Get in touch with your personal contact directly. They will be happy to activate the section for you.

Now switch to the “Benefit inactive” column and then select the relevant employees and click on the Configure now for employees button.

Tip: To select all employees collectively, check the box to the left of “Employees”.

Add your desired details in the new pop-up window and complete the configuration by clicking on activate.

The current month is preset as the start date, as well as the maximum amount of €50. You have the option of specifying both the start and end date as well as the monthly amount individually. If you do not set an end date, the employee will automatically receive the submitted value every month up to the preset maximum amount.

Your employees are now automatically moved to the “Benefit active” column. Information on the amount and from when the benefit is active is automatically added to the overview.

You can also end the benefit or change options here via “Change configuration for x employees”.

Integration with payroll accounting / payment of the internet allowance

After the annual confirmation of the digital agreement by your employees and the one-off configuration in the employer portal by you, your employees receive the reimbursement of the tax-free internet allowance net together with their salary payment for the following month.

The payroll data is automatically transferred to your desired payroll program, e.g. Datev LODAS or Lexware.

If the accounting system has been changed, please contact Probonio Support and we will make the change for you. You can then enter all information on wage types (de: Lohnart) and e-mail addresses etc. yourself in the respective benefit.

Tip: After setup and the first download, you can activate automatic monthly dispatch to up to three email addresses.

Receive import file for the payroll program

To do this, click on the Payroll data export tab in the Internet allowance area:

The next step is to choose your payroll accounting system. The vast majority of tax firms use DATEV. DATEV offers two programs for payroll accounting: LODAS and Lohn & Gehalt.

Now add your consultant number, client number and the Internet flat rate wage type and download the report.

You must enter this data for the one-off configuration of the integration in the employer portal. You can obtain this from your tax office. Be sure to check the box “Automatically send me the wage data reports by e-mail every month”

Further information on the internet allowance

• Internet costs are reimbursed in addition to your salary.
• In addition to the reimbursement of ongoing costs, you can also reimburse one-off costs up to the actual amount of the expenses. This means that amounts over 50 euros can also be reimbursed. For this purpose, your employees must provide individual proof of the costs.
• The costs can only be taxed at a flat rate up to the amount actually incurred.
• The internet allowance can only be granted if the costs for the internet connection are borne by the employee him/herself and not by other persons.
• Your employees do not have to pay taxes or social security contributions for the internet allowance.
• In general, the internet allowance can be used for any employee, i.e. full-time employees, part-time employees, working students, trainees and mini-jobbers. Business partners are not included.

You can find more information on the internet flat rate here:

• Flat-rate taxation of internet allowances: § 40 Absatz 2 Satz 1 Nummer 5 Satz 2 EstG
• Flat-rate taxation of internet and data processing equipment: R 40.2 Abs. 5 LStR
• Flat-rate reimbursement of expenses: R 3.50 Abs. 2 Sätze 1 bis 2 + 5 bis 7 LStR

Translation Note: This article has been translated using automatic translation software to provide the reader with a basic understanding of the content. Despite reasonable efforts to provide an accurate translation, we cannot guarantee its accuracy.

If there are any questions regarding the accuracy of the information in the translated article, please refer to the German version of the article, which is the official version.