A frantic sifting through dozens of invoices, tickets, or yellowed and crumpled papers, which are beginning to fade: but where is hidden this piece of paper which confirms the bill paid three months ago? The most distracted and disorganized work like this, promising themselves to become better students – one day – for accounting: meticulously arranging their receipts by stapling them neatly. 89% of French executives produced expense reports before the health crisis, 80% in 2022 (Ifop/Mooncard). If less than a third of the executives concerned are afraid of not being reimbursed, 60% mention their fear of losing the supporting documents. This is especially the case for women (63% compared to 59% for men), those under 35 (69%, i.e. 13 points more than their elders), Ile-de-France residents (64%, i.e. 6 points more than residents of the provinces) and households with children (65%, compared to 55% for employees without children).
Behind this delusional process for administrative phobics lies a system which links the employee to his company under the control of Urssaf: “expense reports are documents submitted by an employee to his employer to justify expenses incurred within the framework of of his duties and obtain reimbursement”, describes Alexandra Dabrowiecki, lawyer at the Voltaire law firm. But what is the average of these advances, do they constitute remuneration and can the manager be reimbursed in professional expenses for the lunch he offered his team at the brasserie opposite the company?
More than 100 euros on average per month
For half of the executives who issue expense reports, the sum is more than 100 euros per month indicates Flora Baumlin, client director, opinion, corporate & work experience department at Ifop (Mooncard study, 2023). The main reasons are catering (89%), transport (80%) and accommodation (62%). It is the salesperson who takes a taxi, a train or a plane, eats in a restaurant and sleeps in a hotel when he goes to visit clients, far from his region. Other costs include gasoline or those specific to the company (purchase of notebooks at the supermarket, for example), as well as workstation adjustments (between 30 and 50%). 43% of respondents were reimbursed in two weeks or more, 9% beyond four weeks. “Satisfaction with the management of expense reports largely depends on their reimbursement deadlines: the longer they take, the less satisfied executives are,” specifies the expert.
Inflation has done damage: the leading areas of spending are catering and gasoline (tied at 61%). Furthermore, executives “have restricted their spending habits in 2023”, analyzes Flora Baumlin, without however deciding between the company’s deposit or the advance on their own funds. In fact, among those who take out their personal funds, 32% have already found themselves in financial difficulty.
Watch out for Urssaf
“The costs that an employee justifies having incurred for the needs of his professional activity and in the interest of the employer must be reimbursed to him without being able to be charged against his remuneration. This coverage is obligatory, even when the law, the collective agreement or the employment contract are silent on the issue,” warns Alexandra Dabrowiecki. “If the employee has financial difficulties, he must tell his employer because nothing obliges him to advance the costs. He could put himself at fault if he refused a trip, but by warning in advance that he does not will not advance the funds, it is up to the employer to find a solution,” she continues.
The expense report is important for two reasons: for the employee in order to be reimbursed by his employer, and for the latter in the perspective of a possible inspection by Urssaf. “Since professional expenses are not subject to social charges, Urssaf will verify that each expense reimbursed to the employee is justified by his professional activity, its consistency with the agenda of the employee concerned or meeting reports “Urssaf also requires that the identity of the customer who was invited to lunch appear on the expense report”, specifies the lawyer. And that the expense is proportionate to the purchase. This reimbursement, which is added to the employee’s remuneration, is not subject to social security contributions.
If the temptation can be great to pass off other sums as professional expenses (false receipt, inflated mileage costs, etc.), the recovery can add up very quickly. Therefore, remember that the employee can only make expense reports for catering if he or she is on a business trip and therefore unable to have lunch at home or at his or her workplace. Something to think about for the manager who generously invites his colleagues to the local brasserie: he will not be able to pass this expense report for catering. However, if it proves that these costs were incurred in the interest of the company and for the needs of the activity, that they remain proportionate or “reasonable” (be careful with overpriced wines), that they are duly justified and this “team cohesion” operation remains exceptional, the accounting department, which lives with the sword of Damocles of Urssaf hanging over its head, will be able to be understanding.
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