How does it work?
Workride operates on a “salary sacrifice” model, where employees opt to reduce their pre-tax salary to lease a bike or scooter. In addition to the tax savings, a small proportion of other contributions like student loans or KiwiSaver may also be redirected towards the ride, depending on its value. At the end of the lease term, employees have the option to take ownership of the ride.
For example, an employee with a $80,000 salary chooses a bike valued at $6380, but it’s on sale in-store at $5200. Through Workride, they sacrifice $100 pre-tax and their weekly take-home pay impact is only reduced by $49, totaling an annual net contribution of only $2572 towards the ride. Thus, making their new salary $74,800. This arrangement benefits both the employee and employer, offering tax savings and financial flexibility.
1. Sign Up
Employers sign up with Workride and offer this benefit to their staff. It’s a great way for employers to engage with and support their team.
2. Choose your new ride!
Once an employer is on board, employees can pick out a bike for their commute from us
3. Ride & Save
Over a 12-month period, you can use the new ride while the salary sacrifice effectively reimburses your employer in full.
With Workride employees reduce their tax bill through a combination of PAYE and ACC levy.
4. Next Steps
Before the lease period ends, 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 simply 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.