Employee accommodation is one of the most attractive benefits a company can offer. Young professionals are increasingly willing to move to a new city to undertake employment. This is provided that they receive a fully-equipped apartment in a convenient location. Companies are also looking for apartments where a group of employees can stay during business trips or assignments away from company headquarters. Find out how to seamlessly organise employee accommodation and how to settle company rental costs.
Employee accommodation vs. renting an apartment
Employee accommodation is a specific type of apartment rental. The terms of the contract must be tailored to the needs of the company, not the private tenant. Business accommodation should also offer a standard ensuring comfortable living for employees from the first moments they move in.
What’s important when renting employee housing?
Term of rental
Employee accommodation is usually a short-term rental – for a few weeks or months. If a company brings in an employee for a longer period of time, the accommodation contract can be for up to 12 months. It’s worth noting as to whether the owner of the apartment is flexible in terms of rental period. Should the employee contract be extended, will the owner of the apartment also be able to easily extend the rental of the apartment?
Easy billing
If a company is looking for apartments for employee rental, it must be ensure that the settlement mechanism for rent and utilities is clear. There must be a guarantee that the cost of accommodation will be constant throughout the term of the contract.
VAT invoice
It is worth ensuring that the company receives a VAT invoice from the landlord. This will form the basis on which the company will be able to include employee accommodation as a tax deductible cost. The landlord should also offer the company the possibility of paying rental costs not only in PLN, but also in EUR.
Standard of the apartment
Employee apartments must be fully equipped and furnished. As this is a temporary measure, all furniture and equipment necessary for everyday living must be provided.
Location
Convenient location – temporary accommodation requiring an employee to travel long distances is counter-intuitive to the work placement. So, it’s worth checking out how far from the city centre the apartment is located and whether it is well-connected with other parts of the agglomeration. The apartment’s immediate vicinity is not insignificant either – it’s important to know if the apartment is in well-kept surroundings with access to parks and leafy areas.
Find out what else to look for when renting an apartment for an employee.
Employee accommodation costs – how to settle
Article 15(1) of the CIT Act states that a company may include fees related to the accommodation of an employee in tax-deductible costs. This applies to both rent and fees for administrative services or utilities. Of course, the cost of the employee's accommodation must be related to obtaining income or maintaining or securing the source of this income.
At the same time, providing a flat to an employee is subject to income tax exemption up to PLN 500 per month. This is stated in Article 21(1)(19) and (14) of the Income Tax Act. The company pays income tax only on the difference between the actual rental cost and PLN 500.
Renting an apartment for an employee and social and health insurance contributions
The permanent payment for an employee’s flat at the workplace is included in the employee’s income, so the employer must pay the social insurance contributions and income tax on this amount.
According to the Gofin.pl portal, when the monthly value of such a benefit exceeds PLN 500, the excess is taxed. This excess should be added to the employee’s remuneration package, and from the so received sum the employer should assess and collect a pay as you earn tax.
However, when accommodation costs exceed the statutory limit and the employer adds the surplus to the employee’s income, social insurance contributions are not deducted from the taxable income, and health contributions in the amount of 7.75% of their assessment basis, where such assessment basis is tax-exempt income (revenue).
At the same time, it should be noted that the cost of renting an apartment for an employee is not counted as income if accommodation is related to a business trip or a temporary contract, and the employee’s permanent place of residence is elsewhere.
Employee accommodation – where to look for housing
A company wanting to rent an apartment for an employee can look for accommodation from private individuals, or accommodation in hotels or hostels. Finding accommodation from private individuals offers a home-like atmosphere, but it’s difficult for companies wanting to accommodate many employees at once.
Hostels offer many beds in one building but lower prices often translate to a lower standard than apartments but have that typically hotel-like non-descript appearance In addition, hotel rooms lack kitchens allowing for the possibility to make breakfast. If employees are to live in them for several weeks or even months, this can be a big drawback.
Is it possible to combine the availability of many apartments, a high standard and a cosy, home-like atmosphere? Yes. The solution is to accommodate the employee as part of a professional rental of apartments by the company.
Apartment for an employee from Urban Home
At Urban Home, we offer buildings with premises specially prepared for the accommodation of employees. It’s possible to house entire teams. We make sure that our employee apartments are modern but at the same time we endeavour to create a truly home-like atmosphere.
The infrastructure of our buildings is adapted to the needs of employees – easy access to the centre, parking and bicycle room, fully equipped apartments, Wi-Fi, and a place for co-working.
We provide fully professional B2B customer service, too.
- We keep formalities to a minimum. We’re able to sign a contract within 48 hours.
- We give transparent, clear rental rules. Our contracts are fair and lawyer-verified.
- We offer rental from 3 to 12 months.
- We can provide one VAT invoice for all premises located in one building, or for each apartment separately.
- We offer rental in two currencies: PLN and EUR.
- We guarantee ongoing support of resident assistant in case of emergencies, failures, or other problems. Our B2B customers can contact the building manager 24/7.
If you are looking for accommodation for employees, please contact us. We will be more than happy to answer all your questions and discuss the terms of the rental.