The public transport ticket reimbursement and mobility budget benefits explained

Key points:

• The main points.
  Employees can use their mobility budget to buy tickets for public transport. This works with RYDES in three different ways.
  a. Book and pay with the RYDES mobility budget card in the apps of the public transport companies.
  b. Book and pay for a job ticket in the RYDES app.
  c. Buy the ticket at the counter or ticket machine and get reimbursed via the RYDES app.

• Which tickets are eligible for reimbursement?
  All tickets that can be allocated to public transport, i.e. tickets for public urban and regional transport, such as single tickets, day tickets, monthly tickets, job tickets, and subsidies for tickets (pro rata or in full), both for journeys to the office and for private journeys.
  
  
• Reimbursement process with RYDES.
  1. Buy a ticket from a ticket machine.
  2. Scan the ticket and upload it to the RYDES app.
  3. Wait, RYDES checks and approves the reimbursement.
  4. The reimbursement amount is deducted directly from the monthly balance.
  Done!
  
  
• Tax benefits.
  ‍If you provide the benefit in addition to the agreed salary, the reimbursements can be made tax-free via payroll.
  
  Alternatively, you can grant the tickets and reimbursements instead of salary. This benefit is then subject to a 25% flat-rate payroll tax.

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How can employees use the mobility budget for public transport journeys?

The mobility budget is most often used for the purchase of bus and train tickets.

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Employees can use the RYDES mobility budget to access tickets for all public transport companies and railways in Germany as well as worldwide and buy single tickets, short-distance tickets, and weekly or monthly tickets.

If you know exactly that you will be traveling regularly by bus and train over the next 12 months, you can also conveniently take out a monthly or annual subscription (e.g. job ticket) with the public transport company.

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If employees receive a mobility budget as a travel allowance from their company, they have three options with RYDES to book and pay for public transport tickets with their credit.

1. RYDES Mobility Budget Card. Book and pay with the RYDES Mobility Budget Card in the apps of public transport companies.
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2. Apply for a Job ticket. Book and pay for a job ticket in the RYDES app.
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3. Public transport reimbursement feature. Buy a ticket at the ticket office or ticket machine and get reimbursed via the RYDES app.
   

How do employees track the cost of their public transport tickets in the RYDES app?

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Your employees buy the tickets at the counter or the ticket machine, scan the ticket and upload it to the RYDES app.

RYDES checks the provider of the ticket, the ticket price, as well as the date, time, and validity period of the ticket.

As far as the tickets can be assigned under public transport, the tickets are approved and saved by RYDES.

Your employees use them to document their travel costs and you reimburse them directly via the mobility budget. Your employees can then view their new credit balance in the RYDES app.

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Read the tax details for payroll accounting here:

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1. Tax-free subsidies for public transport between home and work if job tickets are provided: § 3 No. 15 EStG (Income Tax Act)
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2. ‍Flat-rate wage tax in special cases at 25% (without offsetting against the commuting allowance): § 40, paragraph 2, sentence 2, number 2 EStG
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3. BMF letter of 15 August 2019 on employer benefits for journeys on local and long-distance public transport
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