In France, professional expenses refer to the costs incurred by employees in the course of their professional duties. Their reimbursement is permitted, but strictly regulated. A misinterpretation or imprecise management of these expenses can lead to an URSSAF reassessment, resulting in significant financial consequences for the company. This article aims to clarify what professional expenses are, the conditions for their reimbursement, and the risks to avoid.
What is a professional expense?
According to the URSSAF, professional expenses are costs incurred by an employee for the needs of their professional activity, which the employer may reimburse either based on supporting documentation or in the form of flat-rate allowances. These reimbursements are excluded from the social security contribution base, provided that the regulatory conditions are met.
Expense allowances are not considered part of the employee’s remuneration, but reimbursements of professional expenses, when they cover a cost:
- Inherent to the job: the expense directly results from the conditions of performing the work. It does not have to be exceptional or abnormal in nature; and
- Actually incurred by the employee: the expense results from the working conditions and imposes a cost exceeding ordinary personal living expenses.
The most common types of recognized professional expenses include:
- Business travel (mileage, plane tickets, tolls, parking, etc.)
- Meals taken during assignments or travel
- Temporary accommodation for professional reasons
- Teleworking costs: furniture, IT equipment, internet connection
- Equipment or supplies necessary for the job
- Relocation expenses linked to a professional transfer
- Training or registration for professional events
It is essential to distinguish between professional expenses—costs incurred in the exclusive interest of the employee’s professional activity—and benefits in kind, which correspond to goods or services made available by the employer that can be used personally.
The two main reimbursement methods
Employers can reimburse employees under two main methods: actual expenses (“au réel”) or flat-rate (“forfait”).
Each method has advantages, limitations, and specific compliance rules set by URSSAF.
- Reimbursement based on supporting documents (“au réel”)
The employee must provide precise documentation (invoices, receipts, restaurant bills, toll tickets, etc.) corresponding to the actual expenses incurred. The company then reimburses the exact amount.
Supporting documents must be clear, dated, detailed, and allow identification of:
- The type of expense (transportation, meals, accommodation, equipment, etc.)
- The exact amount paid by the employee
- The connection with professional activity (mission, business trip, event, etc.)
- Flat-rate reimbursement (“forfaitaire”)
Flat-rate reimbursement consists of paying a predefined allowance to the employee, without requiring detailed receipts for each expense. This method relies on official URSSAF scales, which set maximum amounts depending on the type of expense (meals, travel, teleworking, etc.). These rates are updated regularly and must not be exceeded unless actual expenses are proven.
To qualify for exemption from social security contributions, the employer must:
- Strictly comply with URSSAF limits
- Justify the professional context (travel, telework, assignment, etc.)
- Avoid paying flat-rate allowances when no actual expenses have been incurred
If the amount exceeds the official ceilings or if conditions are not met, the excess is treated as a benefit in kind, and thus subject to social security contributions as part of remuneration.
Regardless of the reimbursement method used, the total amounts reimbursed must appear on the employee’s payslip (French Labour Code, art. R. 3243-1).
Main categories of professional expenses
1. Meals and catering during short business trips
When an employee must temporarily work away from their usual place of employment, meal costs may be reimbursed. These are subject to ceilings and may be reimbursed either on an actual or flat-rate basis, depending on the circumstances.
Expenses are considered professional when they represent additional costs for employees who must eat away from home or the company premises during their usual lunch hours, due to the nature of their work.
When reimbursement is flat-rate, three different situations are distinguished:
- Employee required to have lunch at the workplace
- Employee on a business trip required to eat at a restaurant (proof of necessity is required)
- Employee on a business trip not required to eat at a restaurant
2. Transport between home and workplace
The reimbursement of commuting expenses constitutes a legal obligation for employers in France, particularly concerning public transport subscriptions used by employees to travel between their home and workplace.
Other commuting-related costs, such as the use of a personal vehicle or parking fees, may also be reimbursed under specific conditions set by the social security authorities (URSSAF).
a. Mandatory coverage of public transport costs
This reimbursement is mandatory for all employees, including part-time employees.
It is exempt from social security contributions.
Only season tickets (annual, monthly, or weekly subscriptions) used for commuting between the employee’s usual residence and workplace are covered, and the subscription must be in the employee’s name and supported by proof of payment.
Single-use or occasional tickets are not eligible for this reimbursement.
The employer must cover at least 50% of the cost of these season tickets, based on the rate for the most direct route between the employee’s home and workplace.
b. Optional reimbursements:
In addition to these mandatory schemes, employers may voluntarily cover other professional expenses to improve employees’ working conditions or mobility.
These optional reimbursements can concern, for example:
- The Sustainable Mobility Allowance (for commuting by bicycle, carpooling, or shared vehicles);
- The coverage of fuel costs or electric charging costs for employees using their personal vehicle for work-related travel;
- Remote work allowances, such as contributions to internet or electricity expenses.
When optional reimbursements are made under the conditions set by URSSAF (particularly regarding limits and justification), they also benefit from social security exemptions.
c. Sustainable mobility package:
For employees who use so-called “soft mobility” or “shared mobility” modes of transportation for commuting between their home and workplace, the employer may pay an allowance exempt from social security contributions, known as the Sustainable Mobility Allowance (forfait mobilités durables).
This may include, for example, financial assistance for the purchase of an electric bicycle, participation in carpooling costs, or the rental of shared vehicles.
The reimbursement or coverage of expenses under the sustainable mobility scheme must apply under the same conditions to all employees of the company.
The amount and eligibility criteria for this allowance must be defined either by a collective bargaining agreement or, in its absence, by a unilateral decision of the employer.
This coverage takes the form of a flat-rate allowance exempt from social security contributions, up to a limit of €600 per year per employee.
3. Business travel using a personal vehicle
When an employee uses their own vehicle for business purposes, they may receive a mileage allowance calculated using an official scale.
This allowance compensates for vehicle depreciation, fuel, and other related expenses.
Mileage rates depend on:
- The type of vehicle (car, motorcycle, scooter, etc.)
- The vehicle’s horsepower
- The number of professional kilometers traveled per year
For electric vehicles, the mileage allowance is increased by 20%.
These reimbursements are exempt from contributions within the official URSSAF scale and must be properly justified (professional trips, mileage log, vehicle registration, etc.).
In the absence of supporting documents, mileage allowances will be treated as submitted remuneration.
Indemnités kilométriques – Urssaf.fr
4. Long-distance assignments: accommodation and meals
For distant or extended assignments, employees may incur accommodation and meal expenses. Specific URSSAF rates apply, based on duration and location.
A trip is considered a “long-distance assignment” when both conditions are met:
- The distance between home and workplace is at least 50 km (one way); and
- Public transport cannot cover the distance in under 1.5 hours (one way).
The employer may reimburse the actual expenses incurred by the employee, either based on supporting documents or using flat-rate allowances. There are three categories of long-distance assignments to distinguish:
- Long-distance assignments in Metropolitan France
- Long-distance assignments in French overseas territories
- Long-distance assignments abroad
Reimbursement based on flat-rate allowances for assignments in Metropolitan France and French overseas territories includes one allowance for meals and another for lodging. These amounts apply for a travel period of up to 3 months, whether continuous or intermittent, and are then reduced as follows:
- 15% reduction from the first day of the 4th month for assignments lasting more than 3 months but less than 2 years;
- 30% reduction from the first day of the 25th month if the assignment continues beyond 24 months, up to a maximum of an additional 4 years.
- No flat-rate reduction applies if the assignment continues beyond 4 years.
Regarding the flat-rate allowance for long-distance assignments abroad, it covers the meal and lodging expenses incurred by the employee during their international assignments. The daily rates for overseas assignments vary depending on the country where the assignment takes place and take into account the local currency. You can find the official rates here: Barème des frais de mission à l’étranger | Ministère de l’Économie des Finances et de la Souveraineté industrielle et énergétique.
The allowance paid to the employee must be reduced as follows:
- 65% reduction when the employee is provided with free accommodation, i.e., when lodging is supplied or the employer directly covers the accommodation costs by paying the hotel;
- 17.5% reduction when the employee is provided with one meal;
- 35% reduction when the employee is provided with two meals.
5. Professional mobility
In cases of employee transfers, relocation, or dual housing due to professional reasons, the employer may cover professional expenses when the commute from the old residence to the new workplace cannot be completed in less than 1.5 hours. The BOSS guidelines provide that these expenses may be reimbursed either on the basis of actual costs or as flat-rate allowances, depending on the supporting documentation provided.
The employer may cover, based on actual expenses and with proof, the following:
- Moving costs;
- Relocation expenses abroad or to French overseas territories.
The employer may also provide flat-rate allowances for two categories of expenses:
- Temporary accommodation and additional meal costs – exempt as professional expenses, within a daily flat-rate limit, applicable for a maximum of 9 months;
- Settling-in expenses for the new residence – these allowances compensate for costs related to the employee’s installation in the new home (utilities, repairs, furnishing) and are exempt up to a flat-rate limit for a single person or couple. This amount may be increased depending on the number of dependent children, up to a maximum of 3 children.
6. Teleworking expenses
Remote work, now common, generates specific expenses: internet connection, electricity, furniture, and IT equipment. The employer may reimburse actual expenses or pay a flat-rate allowance, provided the costs are justified and related to professional activity.
Three categories of teleworking expenses can be identified:
- Fixed and variable costs associated with providing a private space for professional use;
- Costs for adapting a specific workspace, including the purchase of furniture and IT equipment;
- IT, connection, and miscellaneous supplies.
The employer may pay a daily flat-rate allowance based on current URSSAF rates, with a monthly cap. If the employer pays more than these limits, social security exemption may still apply if the professional nature of the expenses incurred by the employee is demonstrated.
7. IT and communication equipment
If the employee uses their personal IT equipment for work, the employer can reimburse expenses either on a flat-rate basis or based on actual costs, both exempt from social security contributions.
With supporting documents, the expenses that can be covered by the employer for an employee using their personal information and communication technology (NTIC) tools include:
- IT hardware (computers, printers, etc.);
- Consumables (paper, ink cartridges, etc.);
- Connection costs (telephone, internet, etc.).
If it is not possible to provide proof of the actual expenses, but they are professional in nature, reimbursement may still be made on a flat-rate basis within the current monthly limit.
Best practices for companies
Managing professional expenses goes beyond simple reimbursement: it reflects rigor, transparency, and compliance with legal requirements within the company. To avoid any risk of reclassification or URSSAF adjustments, certain practices should be systematically implemented.
- Draft an internal policy or professional expense charter to define the rules:
- Expense categories covered
- Reimbursement methods
- Applicable ceilings
- Deadlines for submitting supporting documents
- Inform employees about their rights and obligations regarding expenses:
- What can be reimbursed
- What cannot be reimbursed
- Risks associated with missing receipts or exceeding limits
It is important to choose an appropriate reimbursement method:
- Actual expenses: recommended for occasional or specific costs, with receipts provided
- Flat-rate allowances: suitable for recurring costs, provided URSSAF rates are strictly respected
The company must keep supporting documents, prepare clear expense reports, and document the link between the expense and professional activity. With digitalization and increased URSSAF inspections, companies now have access to powerful tools to secure, centralize, and automate professional expense management. These solutions allow companies to combine administrative rigor with operational efficiency.
Good traceability is the best defense in case of inspection. It is essential to monitor the evolution of URSSAF rates closely, which define each year the ceilings for exemptions applicable to flat-rate reimbursements. Rates are published and revised annually, usually in January, and apply to amounts paid from January 1st for the corresponding employment periods.
Special attention is required for situations such as teleworking, long-distance assignments, and professional mobility, which may sometimes require personalized support.
FBA can assist you in ensuring compliance and defining a reimbursement policy adapted to your business. We help structure your professional expense management, secure reimbursements, and implement clear and efficient tools for your teams, with tailored support.
