Telework allowance: expenses reimbursed by the employer
The reimbursement of telework expenses is exempt from social security contributions for companies. How to calculate the telework allowance?
Teleworking generates several additional costs for the employee (purchase of office supplies, heating, electricity, Internet, telephone, etc.). The reimbursement of the costs incurred by the teleworking employee is exempt from social security charges for companies. How to calculate the telework allowance? What expenses can be exempted? What are the tax exemption limits?
Since the order of September 22, 2017, the employer's coverage of teleworking expenses is no longer mandatory. Because of the health crisis, new measures were taken and the Ministry of Labor, Employment and Integration had published a guide to teleworking during the March-April 2020 containment, stating that : "The employer is not obliged to pay his employee a teleworking allowance intended to reimburse him for expenses arising from teleworking , except if the company has an agreement or charter providing for this".
In November 2020, Article 3.1.5 of the ANI states that: "The principle that the costs incurred by an employee in the context of the performance of his or her employment contract must be borne by the employer applies to all work situations. As such, it is the responsibility of the company to cover the expenses incurred by the employee for the needs of his professional activity and in the interest of the company, after validation by the employer", provided that the employer's validation is interpreted as being prior to, and not subsequent to, the employee incurring the expenses.
On April 13, 2021, the ANI was extended, and its article 3.1-5 stipulates that it is up to the company " to cover the expenses incurred by the employee for the needs of his professional activity and in the interest of the company, after validation by the employer. The choice of methods for covering professional expenses may, where appropriate, be the subject of social dialogue within the company ".
Expenses incurred by telecommuting employees can in fact be considered as expenses incurred for the needs of their professional activity. Covering these expenses is advantageous for the company, as part of the cost is tax-exempt.
The employer may therefore bear some of the costs of telework in the form of reimbursement of actual expenses or a telework allowance.
There are two ways in which the employer can reimburse the employee's telework-related expenses:
Urssaf specifies that the amount of the lump-sum allowance varies according to the number of teleworking days per week: the employer pays €13 per month per employee for one day of teleworking per week, €26 per month per employee for 2 days of teleworking per week, and so on, up to a maximum of €71.50 per month for employees who telework 5/7 days a week.
If the employer pays its employees a lump-sum allowance to cover their teleworking expenses, this may be tax-exempt up to a limit of 2.60 euros per day of teleworking, representing an exemption of 57.20 euros for a month comprising 20 days of teleworking.
When the lump-sum teleworking allowance is set on a daily basis, it is deemed to have been used for its intended purpose and is exempt from social security contributions if its daily amount does not exceed 2.60 euros, up to a maximum of 57.20 euros per month.
The employer may pay less than, equal to or more than the amount set by Urssaf. The law does not require the employer to pay a specific amount, but the exemption is always within the limit.
According to Urssaf: "if the lump-sum allowance is provided for by the branch collective agreement, the professional or interprofessional agreement or a group agreement, it is deemed used in accordance with its purpose and exempt from social security contributions within the limits of the amounts provided for by collective agreement". This means that the company will not have to justify the expenses related to telework if it is mentioned in the agreement. It should be noted that if the company makes a reimbursement which exceeds the flat-rate telework allowance, supporting documents become necessary to claim the exemption from social security contributions.
The employer indicates the amount of the telework allowance paid in the information sent to the tax authorities. The employee will be able to verify the amount of the allowance received when declaring his income by checking the amounts in his pay slips or in the annual tax certificate issued by his employer.
Expenses incurred by teleworking employees are considered as business expenses and can be presented in three categories:
Other business expenses may be allowed, provided that the employer can demonstrate that they are business expenses related to telework.
If the employer reimburses the expenses incurred by his employees in excess of the amount set by Urssaf, the exemption from social security contributions may be allowed subject to proof of the expenses actually incurred by the employee.
The following are some examples of theassessment of business expenses related to teleworking that may be subject to this exemption:
Fixed costs: rent (amount of rent or, in the absence of rent, gross rental value), housing tax, property tax on built-up areas, regional, departmental or municipal taxes such as the household waste collection tax, co-ownership charges and comprehensive home insurance.
Example of assessment of fixed costs
Flat of 80 m² of which 10 m² is for professional use, rent = 400/month, council tax = 40 €/month and insurance premium = 15 €/month.
The amount of deductible costs is calculated in proportion to the amount used for professional activity, it amounts to 455 x 10 / 80 = 56.875 €.
Variable costs: heating and/or air conditioning and electricity. The assessment is made in proportion to what is actually consumed for the business premises.
Office supplies: when furniture (such as a desk, ergonomic chair, desk lamp, shelves, etc.) is purchased by the employee on behalf of the company (the employee remains the owner), the costs reimbursed by the employer are exempt from social security contributions up to 50% of the actual expenditure on presentation of receipts.
The Worklife solution means that you no longer have to worry about managing the receipts
Computer equipment and peripherals: when purchasing a computer, printer, etc., the costs reimbursed by the employer are exempt from social security contributions up to a limit of 50% of the actual expenditure on presentation of supporting documents.
Consumables (ink cartridges and reams of paper, etc.) : Expenses reimbursed by the employer are exempt from social security contributions on presentation of proof of the expenses incurred.
Telecommunications: the costs of connection to the telephone network, subscription costs (telephone, Internet, etc.) are reimbursed and exempt from social security contributions on presentation of proof of the costs incurred.
The Worklife solution allows companies to improve the conditions of telework for their employees. The Worklife card simplifies the implementation of the telework allowance: