Transport costs correspond to expenses incurred by the employee for the needs of his professional activity.
Indeed, employees are often required to use their personal vehicles for work purposes, or to use public transport or public bicycle rental services to get to work.
These expenses may be reimbursed by the employer. These expenses are then exempt from social security contributions, within certain limits and subject to certain conditions.
What is the mileage allowance?
When an employee is obliged to use his or her personal vehicle for work-related purposes, the employer may reimburse expenses in the form of a mileage allowance.
For this to happen, the employee must meet a condition relating to constraint. They must not be able to use public transport, either because of the distance from their home or workplace, or because of their working hours.
This mileage allowance is therefore not admissible when the distance from the employee’s home and the use of his personal vehicle are due to personal convenience.
When this condition is met, the employee’s mileage expenses may be reimbursed for the use of his or her vehicle in the course of his or her work. An allowance is then paid to cover the cost of fuel, maintenance, insurance and vehicle depreciation.
☛ Please note: there are a number of different ways of paying for employee transport costs. Only one of these is compulsory: 50% of the cost of public transport season tickets purchased by employees for all journeys between their usual place of residence and their place of work.
The mileage allowance is an optional form of reimbursement, in the same way as the reimbursement of fuel and supply costs for electric, rechargeable hybrid or hydrogen vehicles, the transport bonus, or the sustainable mobility package.
How do I set up a mileage allowance?
The mileage allowance is optional. It can be set up by company agreement, or by individual agreement with the employee, for example in the employment contract.
The Syntec collective bargaining agreement does not contain any specific provisions on this point.
However, the amounts and terms of the allowance are set with reference to the scales established by the tax authorities, in order to benefit from exemptions from social security contributions.
These scales take into account the kilometers driven and the horsepower of the employee’s vehicle. For 2024, the rates are as follows:
| Fiscal power | Up to 5,000 km | From 5,001 to 20,000 km | Over 20,000 km |
|---|---|---|---|
| 3 hp and less | d x 0.529 | (d x 0.316) + 1,065 | d x 0.370 |
| 4 hp | d x 0.606 | (d x 0.340) + 1 330 | d x 0.407 |
| 5 cv | d x 0.636 | (d x 0.357) + 1 395 | d x 0.427 |
| 6 hp | d x 0.665 | (d x 0.374) + 1 457 | d x 0.447 |
| 7 hp and more | d x 0.697 | (d x 0.394) + 1,515 | d x 0.470 |
d = distance travelled on business in km
For electric vehicles, travel expenses are increased by 20%.
| Fiscal power | Up to 3,000 km | From 3,001 to 6,000 km | Over 6,000 km |
|---|---|---|---|
| From 1 to 2 hp | d x 0.395 | (d x 0.099) + 891 | d x 0.248 |
| From 3 to 5 hp | d x 0.468 | (d x 0.082) + 1 158 | d x 0.275 |
| Over 5 hp | d x 0.606 | (d x 0.079) + 1 583 | d x 0.343 |
d = distance travelled on business in km
Compensation paid is exempt from social security contributions within the limits of these scales.
However, to benefit from these exemptions, you must be able to justify :
- The tax rating of the vehicle used by the employee,
- The distance between home and work,
- The means of transport used by the employee,
- The number of trips made each month.
Proof of business use of the personal vehicle is the employer’s responsibility.
It is therefore essential to ask the employee to provide all these documents (proof of address, vehicle insurance, etc.).
When mileage allowances paid do not exceed the amounts set by the tax authorities, they are deemed to have been used in accordance with their purpose.
It is still possible to pay compensation in excess of the amounts set by the tax authorities. However, in such cases, proof must be provided that the employee has actually used the indemnities for their intended purpose. Otherwise, the excess amount is subject to all social security contributions.
☝ Note: it is also possible to pay for fines incurred as a result of the employee’s bad behavior (speeding, unauthorized overtaking, etc.) or vehicle malfunction (lack of roadworthiness tests, etc.). In this case, these expenses represent a personal outlay, and constitute an element of remuneration subject to social security contributions.
Parking and toll violations are the responsibility of the registration certificate holder. Their payment therefore constitutes a benefit paid on the occasion of or in return for work, and is subject to social security contributions.
CABINET DESRUMAUX AVOCATS will be happy to answer any questions you may have about setting up a mileage allowance.
