The term "professional spending"refers to any payment made by an employee in the development of his or her duties in the company, as long as it is directly related to the professional activity. Logically, these expenses incurred by the worker are reimbursed by the company.
Reimbursement of professional expenses may take the form of a reimbursement of actual expenses based on receipts and invoices, the payment of a pre-arranged compensation or the inclusion of a compensatory bonus in the salary at the end of the month. All this is calculated thanks to a note management effective in the company's accounting department.
Professional expenses are exempt from contributions to Social Security and other public bodies.
Requirements to consider a professional expense
There are three fundamental requirements to be able to define a professional expense as such, and, therefore, reimburse the payment to the employee.
The first of them is obvious: the expense must be clearly justified by professional activity of the company. Thus, all the material necessary for the office or to perform the functions of a worker meets this requirement.
Of course, the accounts must be recorded in the accounts of the company. Through invoices, receipts and expense notes, the accounting expert must be up to date with such payments. To do this, many companies choose to IT solutions like Expensya, an accounting system that automates all expense notes and remains accessible in real time from any corner of the world. Thus, they have a team of experts in the field who will ensure the correct management of professional expenses.
Finally, these expenses must be Documented. Employees who incur professional expenses must provide evidence of the operations carried out, as well as their connection with the professional activity. In this way, it will be necessary to attach a full bill that includes all the necessary information. In some cases, such as Social Security or the bank, it may be enough to provide the receipt of the operation. Furthermore, although it may seem obvious, it should be noted that these documents must be in our name.
By meeting these three requirements, these professional expenses will be considered as deductibles.
Types of professional expenses
In this way, to reimburse professional expenses to employees, they differentiate several Categories with the aim of correctly differentiating them from other non-refundable ones:
- The expenses of restoration, mainly business meals or on business trips. Companies often set a limit, so if the company's proposal is exceeded, the worker should pay the difference.
- The expenses of transport. Whether on a business trip or to go daily to the office in their own vehicle or public transport, employees can request reimbursement of these expenses as established by the Tax Agency in relation to the kilometers traveled.
- The expenses of accommodation They are included as professional expenses only in the event that the destination is more than 50 kilometers (or 1 hour and 30 minutes by public transport) from the worker's habitual residence. In this case, the company usually proposes a predetermined accommodation or a maximum amount per night.
- Other expenses such as those related to the telecommuting, he office supplies or the documentation may be included in these categories.
However, even if they are duly justified and related to professional activity, not all companies necessarily assume the reimbursement of certain expenses. Therefore, it is recommended that the company establish a spending policy understandable and accessible to all employees. In this way, problems with refunds and unnecessary discussions in the sales department will be avoided. accounting of the company.
