Reporting a bicycle benefit
A bicycle benefit, often called employer-provided bicycle, is established when the employer provides a bicycle for an employee for private use. The bicycle may be owned by the employer or acquired through a leasing agreement.
The bicycle benefit is wholly taxable income.
The bicycle benefit reporting practices have changed. If the employer and the employee have committed themselves to the bicycle benefit on or after 24 April 2025, the bicycle benefit will be wholly taxable income.
How to report a bicycle benefit
Report bicycle benefits to the Income Register every month with an earnings payment report. You can report the benefit in a separate report or in conjunction with the payment of wages.
You can give the bicycle benefit either as an addition to wages or by deducting it from the amount of wages. See the following instructions for what you should report in these situations:
Reporting a benefit
Report a bicycle benefit with income type 364 Bicycle benefit, taxable share.
Withholding tax and reimbursement from employee
Add the amount you withhold for the bicycle benefit to the other amounts withheld reported on the same earnings payment report and report them as a total sum with income type 402 Withholding tax.
If you collect a reimbursement for the bicycle benefit from the employee, report it in full with income type 420 Reimbursement collected for bicycle benefit.
Also deduct the collected reimbursement from the amount considered part of wages. Report the remaining amount, i.e. the difference, with income type 364.
A taxable bicycle benefit must be reported to the Incomes Register with an earnings payment report on a monthly basis.
The employer and the employee may agree that the bicycle benefit is granted by deducting the amount corresponding to the fringe benefit from the employee’s monetary wages.
In this case, the employee’s gross wages consist of lower monetary wages and a taxable bicycle benefit. Withhold tax and calculate the employee’s social insurance contributions for the entire gross wages, i.e. wages from which the fringe benefit has not been deducted.
Reporting a benefit
Report
- the bicycle benefit with income type 364 Bicycle benefit, taxable share
- reduced monetary wages as the appropriate income type, e.g. 201 Time-rate pay.
Withholding tax
Add the amount you withhold for the bicycle benefit to the other amounts withheld reported on the same earnings payment report and report them as a total sum with income type 402 Withholding tax.
Correcting fringe benefits
If there are errors in the data you have reported, correct them as soon as possible after the error is discovered.
How do I correct fringe benefits?
Detailed instructions and examples
See examples and read more about reporting fringe benefits in different circumstances:
Reporting data to the Incomes Register: fringe benefits and reimbursement of expenses
See also:
Reporting a bicycle benefit committed to before 24 April 2025