Want to repay your DUO student debt in a tax-efficient way?

Many young employees have a student debt with the DUO that they have to pay off. Many employers are looking for ways to retain employees, for example through attractive employment conditions. Employers can help employees pay off their DUO student debt by paying off this debt as to include a spending target in their cafeteria plan, also known as Individual Choice Budget (IKB). How does it work?

Employers include the repayment of DUO student debt as a spending target their cafeteria scheme/IKB scheme. Employees can then use part of their gross salary (monthly salary, allowances, holiday pay, bonus, 13th month) exchange for this repayment. In this way the employee pays less tax and the employer lower social security premiums. The employee continues to pay off the DUO student debt himself and in return receives part from his gross salary monthly or at the end of the year a net amount of his employer. In this way he keeps more net of his gross salary and the employee pays the part of his salary that he uses to pay the DUO debt to pay off no tax. So a tax advantage for the employee and an attractive employment condition from an employer's perspective. Points of attention

Naturally, the cafeteria scheme/IKB scheme must meet a number of conditions meet and the exchange must be processed correctly in the work costs scheme of the employer. Contact us for more information about implementing a cafeteria scheme/IKB scheme and tax-friendly spending purposes for employees.