If an employee leaves employment before completing their lease, they'll be required to follow your early termination process. By default, this process allows employees to settle the outstanding salary sacrifice through their final net pay, or by making a direct payment. As an employer you will then contact Workride to terminate the lease and approve of Next Steps options to be provided. Workride will then engage directly with the individual to discuss their next steps in regards to their ride equipment ownership options.

The NZ government is helping businesses support a shift to healthier transport modes by removing fringe benefit tax on bikes, e-bikes, and scooters provided to employees for commuting. However, employers face significant compliance and regulatory challenges if planning to facilitate this benefit internally, Workride is here to help. Workride removes employer headaches, by ensuring compliance through NZ’s only approved scheme, and efficiently managing the administration for participating employees.

Want to read up on the fringe benefit exemption? - Legislation link here

Want to read up on IRD’s commentary on this? (Page 77-88) - Tax bulletin link here

The journey of Workride over the past year has been marked by collaboration with leading New Zealand councils, organisations, agencies, and businesses, all aiming to develop New Zealand’s ride-to-work benefit scheme.

A key milestone was the 9-month comprehensive review conducted with NZ’s top tax consultants and Inland Revenue, ultimately resulting in several binding rulings that provide the tax and legal foundation for Workride, New Zealand’s ride-to-work benefit scheme. This development ensures that participating employers can offer Workride with confidence, knowing they are compliant with legal and tax regulations.

Workride, New Zealand’s ride-to-work benefit scheme’s IRD binding ruling link

When an employee leaves employment during the Workride lease period and is either unable or unwilling to settle their salary sacrifice commitments, Workride has an established process to manage the situation.

During the lease, Workride holds the ownership of the ride, giving the employee exclusive possession rights. The employer will have an early termination process that by default allows the participating employee to settle their salary sacrifice obligations.

If an employee is unable to meet these obligations, the employer is initially encouraged to seek an internal resolution.

In instances where an internal resolution isn't feasible, Workride's legal ownership of the ride enables a second outcome. Workride can assist in reclaiming the equipment from the employee and return it to the employer. Subsequently, the employer has the option to reassign the ride to another employee. In such cases, Workride facilitates the setup of a new lease agreement and revised salary sacrifice arrangement, ensuring the ride remains productively utilized within the organization.

Prior to the lease period ending, Workride will directly contact the individual to discuss the “Next Steps” options regarding their ride equipment ownership. The initial lease allows for the Next Steps to be actioned, enabling a gifting option from Workride to the individual of the ride equipment after 12 months. Workride charges no fees or additional costs when offering the Next step options, these include:

Next Steps Deed (Gift): This option gives the ability for the individual to keep their ride equipment as a gift from Workride. Allowing the transition from legal possession to full ownership, giving employees the ability to permanently keep their bike, e-bike, or scooter.

Returning the Equipment: Alternatively, employees have the choice to return their ride to a predetermined Workride location. Our team then takes responsibility for the equipment, whether it involves recycling, repurposing, or donating it in line with our sustainability commitments

While running your own scheme might seem appealing, navigating the intricacies of tax compliance involving GST, FBT, PAYE, GAAR, and adhering to Employment law can be daunting. Workride has designed a program to ensure complete tax compliance and legal safeguarding for employers. Plus, we do all this at no cost to you! Our dedicated software platform handles all administrative tasks. All you need to do is sign up, approve the benefits, and let us manage the rest, from complex tax matters to ongoing regulatory monitoring. With Workride, you can offer a valuable employee benefit without the headache.

For the best advice tailored to your unique circumstances, we recommend contacting your accountant. They can provide specialized guidance and help develop a strategy that enables you to maximize this benefit effectively.

The Workride Benefit Scheme operates using a 'salary sacrifice' system. When an employee opts to forgo a part of their salary for a Workride-approved benefit, this deduction is made from their pre-tax income. As a result, the employee ends up paying less in PAYE, Kiwisaver, and ACC levy, which in turn leads to a reduced Kiwisaver and ACC levy bill for you, the employer.

Here are a few examples of payroll blogs/info on Workride. - Smartly Payroll Link - Crystal Payroll Link - iPayroll Link - PayHero Link

Workride is dedicated to reshaping New Zealand's transportation landscape by promoting cycling. In collaboration with government bodies, local councils, and the riding industry, we offer a comprehensive scheme that benefits both employers and employees. By making cycling accessible and cost-effective, we aim to reduce traffic congestion, promote healthier lifestyles, and foster a more motivated workforce. With our robust partnerships and commitment to excellence, Workride is a movement for a healthier New Zealand.

Register online and we'll send you our onboarding pack with legal documents and guidelines. Once registered, we create an account for you on our web app where you can review and approve employee requests. We handle the paperwork and compliance checks.

Any employer based in New Zealand can register with Workride to offer this benefit to their employees. Simply register online, and we'll send through all the necessary documentation to get you started.

The employee gets the commuting equipment through a lease with WorkRide, either for 12 months or until they leave their job, whichever is sooner. Even though they use it, WorkRide owns the equipment during this lease period. The employee is responsible for its care. So, if it's lost, damaged, or stolen, they'll need to fix or replace it. They must also use it correctly, according to its maker's guidelines, follow certain WorkRide rules, and mainly use it for getting to and from work.

During the 12-month lease with WorkRide, the employee holds legal possession of the ride, but Workride retains ownership .At the conclusion of the 12-month lease of the ride equipment, the participating individual will receive an email directly from Workride outlining their ‘Next steps’ options regarding ownership of the ride equipment.

At the end of the access period, there's no extra hassle for you. Our employer agreement ensures that Workride takes ownership of all the ride equipment processed through the scheme, leaving us responsible for its future. Once the lease agreement ends, whether due to the 12-month expiry or an employee's departure of employment, WorkRide directly contacts the participating individual to discuss the Next steps in regards to ride equipment ownership options.

Once you're onboarded with Workride, maximize employee engagement with the scheme by creating a dedicated section under staff benefits on platforms like Teams or Slack, giving an overview of Workride. Additionally, display visual posters in communal office areas and weave information about Workride into welcome materials for new employees. This approach ensures the scheme's visibility and accessibility, during the onboarding process we can supply all the collateral you require.

Many employers choose to fund the Workride scheme directly from their own cashflow, recognizing the significant benefits it brings to staff in terms of health and wellbeing.

If direct funding isn’t an option for you, stay tuned!

We are in collaboration with trusted capital partners who are developing a financing mechanism to enable any employer to offer Workride to their employees

When your employee chooses a ride through Workride, we invoice you for a 12-month lease equivalent to the ride's cost. Your employee then salary sacrifices this total amount. As an employer you are able to claim GST on this expense, however you are also required to pay GST on the supply, these net out to zero on day one. The employee's salary sacrifice is the GST inclusive ride cost, ultimately enabling you to recover the total cost of operating the scheme.

Under the Health & Safety at Work Act, your organisation is only liable for employees when they are performing official tasks, like biking to a work-related meeting. Commuting is not covered by this Act. However, when offering the Workride scheme, it's recommended to promote cycle skills training, especially for e-bike users. There are numerous certified trainers across New Zealand who offer specialized training. Even though daily commuting isn't included in the Act, providing safe cycling guidelines is a responsible step. For more insights on cycling safety, visit www.bikeready.govt.nz.

The salary sacrifice and the lease are distinct from each other. While the salary sacrifice helps the employer recoup the costs of the ride, any mishaps with the leased equipment, like damage or theft, won't stop the salary sacrifice. So, an employee might finish their equipment lease but still have to continue with their salary reductions. For instance, if an employee takes a break and the salary sacrifice pauses, they might still be making salary sacrifices after the lease ends.

Employees typically enter the Workride arrangement once over the estimated useful life of the equipment, starting from the day the lease agreement begins. However, there are exceptions that may warrant an early replacement. These can include situations like theft or destruction of the equipment, excessive wear and tear, a change in the employee's commuting needs, accidental damage that renders the equipment impractical to use, changes in an employee's physical health that necessitate different equipment, or changes in local regulations that require compliance with new safety or legal standards.

During the initial lease period, the participating employee holds legal possession of their chosen ride equipment. Workride strongly encourages employees to obtain adequate cover for their ride to safeguard against damage or theft. Employees should simply notify their contents insurance provider about the replacement value of their ride.

The salary sacrifice period cannot be shortened from 12-months due to tax compliance. GAAR considerations would apply.