Monthly Payroll Tip: Reimbursement for Telephone Costs

Introduction
Employers can reimburse employees for telephone costs incurred while using their private phone lines for business purposes, free from tax and social security contributions. This can also include partial reimbursements for private internet usage if employees work from home.

Option 1: Flat Rate Reimbursement
One simple way to reimburse employees is through a flat rate of 20% of the total bill, capped at 20 EUR per month. For example, if an employee spends part of their time working from home and uses a private internet connection for company-related calls, the employer may reimburse 20% of the employee’s total phone or internet bill.

Example:
An employee with a 45 EUR flat-rate internet bill could receive 9 EUR back per month (20% of 45 EUR). Over the course of a year, this results in 108 EUR in tax-free reimbursements.

Option 2: Reimbursement Based on Actual Usage
If more precise reimbursement is required, employees can keep track of the percentage of their phone or internet use that is work-related. For example, if 70% of an employee’s internet usage is for work, the employer may reimburse 70% of the total bill, which would also be tax-free. However, this option requires detailed tracking of usage, which can be cumbersome for both the employee and employer.

Option 3: Documented Business Usage
Similar to Option 2, this option allows reimbursement for specific, documented usage. Employees must provide proof of the percentage of their phone or internet used for work purposes, potentially through an app or detailed call log.

Conclusion
Reimbursing employees for work-related phone and internet expenses is a great way to support remote workers and ensure their expenses are covered without adding to their tax burden. Whether using the flat-rate method or reimbursing based on actual usage, these options offer flexibility and support for modern working conditions.