What is a gross salary scheme?
A gross salary scheme is an agreement between employer and employee, where the employee receives a staff benefit (e.g. nail treatment or haircut) instead of part of his gross salary. The value of the treatment is deducted from the employee's gross salary.
In this way, the employee gets access to professional treatments without being taxed by the price.
Cutting cards for treatments
The employee chooses how many clips they want for min. 12 months at a time. If you want, for example, a nail treatment every 14 days, you need 24 clips in 12 months. If you want to get a haircut once a month, you must choose 12 haircuts. 1 clip gives access to, for example, 1 haircut or 1 nail treatment incl. shellac and costs from DKK 438.4 ex VAT. Removal of shellac between treatments as well as light styling of hair is included, but options in the form of designs on nails etc. in connection with treatments are not included in the price. The employees pay for the treatments above the gross salary and thus achieve a tax saving of 35-42% (depending on the individual's tax situation). Employees can both buy clip cards for use at the company and at home.
The practical - what and when?
The treatments take place at your company at the agreed address and on the agreed dates and times. For example, it could be a fixed day every other week from 08.00 to 16.00 - or whatever suits you best. The therapist has all the materials with him and you therefore only have to make room available, which can either be a meeting room or a table in a common room.
The employee writes himself on a list, so there is minimal administration for the company. Once the date has been fixed, Beauty Boosters must have the list in hand no later than 14 days before the agreed date, if it is not a previously fixed day (such as every other Friday or every Wednesday). We send out the number of therapists so that it matches the number of treatments ordered on the day in question.
The company is invoiced every month for 1/12 of the price for the total number of cuts for all employees who are part of the scheme. This means that it is the company that is invoiced for treatments and the employees who finance it in the form of a change in the gross salary.
How your company gets started with a gross salary scheme
The employees who wish to participate in the scheme must decide how many clips they each want for 12 months, so either 12 (one treatment per month) or 24 clips (two treatments per month) . When the price of the total number of cuts has been agreed between employee and employer, 1/12 of this price will be charged on the invoice every month during the agreed period. The therapist will be available on the agreed dates and times corresponding to the number of clips purchased. The employees get a clip drawn on their card after treatment.
When you know which employees are interested and how many clips are wanted, you simply send us a list with the various employees incl. name, email, phone number and number of clips requested. We then agree which dates and times the therapist must be available.
The employer bears the financial responsibility
The employer bears the financial responsibility when entering into a gross salary scheme, as it is the company that enters into the agreement. Clips that are not used during the hours the practitioner is available are lost at the end of the agreement period.
It is not possible to adjust the amount of the salary reduction that the employee has each month. If an employee resigns from his position in the middle of a salary agreement period, the remaining salary must be returned to the employer on the resignation date. It is then up to the employer to decide who should have access to the remaining haircuts, as the employer bears the cost of the remaining haircuts and has access to the treatments.
Employee and employer must, when entering into the agreement, decide whether the employee can keep clips for treatments during periods when the employee is not to be paid, e.g. leave.
Termination of the agreement and renewal of the agreement
When the period for the scheme expires after 12 months, Beauty Boosters ApS and the employer's obligations towards each other cease. After the 12 months, it is the company's responsibility to report who and how many employees want to renew the cutting card.
The above description is only guidance for employers, and Beauty Boosters ApS does not assume responsibility for legal advice. There may be several rules that you as an employer must be aware of in connection with the gross salary scheme and salary adjustment. Please consult your own advisors for guidance for your specific situation.