Käyttöetu

Käyttöetu is a Finnish term that translates to "benefit in kind" or "fringe benefit" in English. It refers to a non-cash benefit that an employer provides to an employee in addition to their regular salary or wages. These benefits are considered part of the employee's total compensation and can have tax implications for both the employee and the employer.

Common examples of käyttöetu include company cars, housing benefits, meals provided by the employer, and other perks that have a monetary value. The specific regulations and taxation of käyttöetu are governed by Finnish tax law. Generally, the value of the benefit is added to the employee's taxable income, and the employer is responsible for withholding taxes on this amount.

The purpose of offering käyttöetu can be to attract and retain employees, to compensate for specific job requirements, or to improve employee well-being. The valuation of these benefits is crucial for accurate tax reporting. Finnish tax authorities provide guidelines on how to determine the monetary value of various types of käyttöetu. For instance, a company car's benefit value is often calculated based on its price, age, and the extent of its private use. Similarly, housing benefits are typically valued based on the market rent of the provided accommodation. Understanding käyttöetu is important for both employers managing payroll and employees receiving these benefits.