Checking and Settlement of Travel Expenses

If business trips are undertaken, travel expenses must be recorded in the accounts and reimbursed to the respective employee. Why it makes sense to have this done by a specialist like Benefitax can be read here.

An example of how easily you can commit tax evasion

An employee was away on a one-day business trip for 15 hours within Germany. He met important customers in the Adlon hotel and owing to the lack of time, he indulged in a lunch costing 60 € all by himself. Now, there are various possibilities:

a) The employer reimburses only the tax-free per diem allowance of 12 € and the employee must pay the difference for the actual expenses himself; i.e. the difference will not be paid out in the payroll accounting.

b) The employer reimburses a higher or the complete amount. 12 € is exempt from wage tax. A flat tax rate of 25% is deductible for another 12 € . The exceeding amount must be fully subjected to the individual wage tax rate of the employee. If applicable, social security contributions must be added.

c) The employer who pays the full amount unknowingly commits tax evasion and evasion of the social insurance premiums.

Verification and Settlement of Travel Expenses

Verification and Settlement of Travel Expenses

This is how we settle the travel expenses of your employees

Every month, you or your employees submit the travel report reports and the corresponding receipts. We check the following:

  • Whether the supervisor or the boss has approved the travel expense report
  • Whether all amounts have been correctly calculated or whether there are any mistakes
  • Whether the amounts entered in the travel expense report correspond to the receipts and whether all receipts are available
  • Check the receipts with regard to the correct input tax deduction, declare the input tax in the advance VAT returns and record all receipts
  • Whether the claimed lump sums (e.g. for the additional meal costs and lodging) correspond to the respective tax regulations. When doing so, we take into account the time of absence of the employees from their domicile and the country, in which they had stayed.
  • Whether an employer must pay wage tax or social insurance on meals or any other benefits in kind for business trips. In case we also prepare your payroll accounting, we routinely include the amounts subject to wage taxation and social security contributions there.
  • That the employees receive the payment for the reviewed travel expenses

Get in touch with us, if you would like to know more about our services for travel expense accounting and would like to receive an offer.

Prepare the travel expense accounting correctly – Comply with tax and legal requirements and be at peace.
Call us at: +49 69-25622760
Mail us at: