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Business trip travel expenses: How to optimise your billing!
Planning a company outing and want to accurately settle the travel expenses? German tax law offers options to reimburse travel expenses tax-free. However, be cautious, as there are some important points to consider to avoid any tax pitfalls. Find out more in our contact form and get personalised advice.
The topic, briefly and concisely
The correct handling of travel expenses during company outings is crucial to optimally utilise tax advantages and avoid discrepancies.
The 110-euro rule offers a way to make travel expenses tax-free. If the allowance is exceeded, the cash equivalent benefit must be taxed correctly.
Company outings are an investment in employee motivation and team spirit. Transparent planning and communication, especially regarding cost distribution, are essential to increase employee retention by up to 10%.
Find out how to optimise travel expenses for your company outing for tax purposes, which insurance aspects to consider, and how the works council is involved. Get informed now!
What Makes a Company Outing Special?
A company outing is more than just a pleasant day out of the office. It is a company-organised event, typically designed as a day trip or short getaway, to sustainably improve the work environment and strengthen team collaboration. Such outings provide a welcome change from the daily work routine and encourage personal interaction between colleagues, which is especially important in times of remote work. The focus is on shared activities and experiences that strengthen the team spirit and lay the groundwork for a better working atmosphere. A well-planned company outing can significantly boost employee motivation and thus have a positive effect on the entire corporate culture. GoTuro supports you in designing the perfect outing that is both fun and enhances team spirit.
Why Travel Costs Should Be a Priority
The proper handling of travel costs is a crucial aspect in organising company outings. It is not just about the tax treatment, but also about compliance with legal requirements. Employers and employees alike must be clear about who bears which costs and how these are settled. Transparent regulation of travel costs builds trust and avoids discrepancies. Additionally, travel costs are an important factor in the overall budget planning of the company outing. Detailed planning of the travel costs is therefore essential to stay within financial limits and to ensure that the outing is affordable for all involved. The travel costs include not only pure transport costs but also any parking fees or tolls. Early and comprehensive information to employees about expected costs and their processing is crucial for positive feedback and high participation rates.
The correct handling of travel costs is also important from a tax perspective. Here, the so-called 110-Euro rule plays a central role, which is explained in detail in the next section. It is essential to consider the tax aspects of travel costs to avoid possible back payments or legal consequences. Professional advice from a tax consultant can be helpful in considering all relevant aspects and correctly accounting for the travel costs. GoTuro not only offers perfect organisation but also supports you with the correct tax processing, allowing you to focus entirely on team building.
Take advantage of the €110 rule: make optimal use of tax allowances
How the 110-Euro Rule Works
The 110-Euro Rule is a key point in the tax treatment of company outings. It allows for a tax-free amount of up to 110 euros per employee per year for a maximum of two company outings. This amount includes not only travel expenses, but also other expenses such as restaurant visits or admission tickets. It is important to note that this allowance applies per employee and event. As long as the costs per participant do not exceed this amount, the expenses are tax-deductible for the employer and tax-free for the employee. The 110-Euro Rule is designed to help companies easily provide enjoyment to their employees without causing unnecessary tax burdens. Further information on the tax treatment can be found here. Correct application of this rule can help you optimise the costs for your company outings while also providing added value for your employees. GoTuro is happy to advise you on how to make optimal use of the 110-Euro Rule.
What Happens if the Allowance is Exceeded?
If the costs per employee exceed the allowance of 110 euros, a 'monetary benefit' arises. This excess amount must then be taxed. The employer has the option to tax the monetary benefit either through regular income tax or at a flat rate of 25%. The flat-rate taxation is generally simpler and therefore often preferred. Ensuring the correct taxation of the monetary benefit is crucial to avoid legal consequences. Accurate documentation of costs and professional advice from a tax advisor is indispensable in this matter. The correct application of the 110-Euro Rule and taxation of the monetary benefit are thus important aspects of planning and conducting company outings. GoTuro supports you in handling everything correctly so that you can focus on what really matters: fun and team building.
Tax Calculation Made Easy: Examples for Clarification
To clarify the tax calculation when the allowance is exceeded, here are some examples: Suppose the costs for a company outing are 130 euros per participant. In this case, the costs exceed the allowance by 20 euros. This 20 euros represents the monetary benefit that must be taxed. The employer can tax this amount either through the employee's regular income tax or apply the flat wage tax of 25%. With flat-rate taxation, the employer would therefore pay 5 euros per employee in taxes (25% of 20 euros). Another example: the costs amount to 180 euros per participant. Here, the monetary benefit is 70 euros (180 euros - 110 euros). Under flat-rate taxation, 17.50 euros would need to be paid in taxes per employee (25% of 70 euros). These examples illustrate how important it is to accurately calculate the costs per participant and to correctly tax the monetary benefit to avoid legal consequences. GoTuro helps you keep track of everything and optimise tax management.
Fairness in financing: Creating transparent cost distribution
No Obligation for Full Coverage: Assess Employer Responsibility Correctly
In principle, there is no general obligation for the employer to cover the complete costs of a company outing. This means that the employer is not legally required to bear all expenses. However, it is common practice for the employer to cover a significant portion of the costs to boost employee motivation and create a positive atmosphere. The exact arrangement of cost bearing is a matter of negotiation and can be individually agreed upon between employer and employees. It is important to understand the legal framework and find a fair solution for all involved. Transparent communication about cost distribution is crucial in avoiding misunderstandings and strengthening employee trust. GoTuro supports you in finding a cost distribution that is acceptable both to the company and the employees.
Funding Models at a Glance: Find the Right Solution
There are various models for how the costs of a company outing can be borne. One option is the complete cost coverage by the employer. This often occurs when the company outing is a form of reward or bonus for the employees. Another option is cost sharing by the employees, where employees cover part of the costs themselves while the employer picks up the rest. A third possibility is full cost coverage by employees, in return for compensatory time off. The choice of the appropriate funding model depends on various factors such as the company's budget, the number of employees, and the nature of the company outing. The Papershift page provides further information on this. GoTuro helps you find the optimal funding model that aligns with your needs and goals.
Psychology of Cost Distribution: Convey Appreciation Correctly
The manner in which costs for a company outing are distributed can greatly affect employee perception. A complete cost coverage by the employer is often seen as a sign of appreciation and recognition. This can increase employee motivation and improve the working environment. On the other hand, cost sharing by employees may be perceived less positively, particularly if the financial burden on employees is too high. Therefore, it's essential to consider the psychological aspects of cost distribution and find a solution acceptable to all parties. Open communication about the costs and the reasons for the chosen distribution can help prevent misunderstandings and strengthen employee trust. GoTuro advises you on how to structure the cost distribution so that it's perceived as fair and appreciative by your employees.
Safety first: Minimising accident risks and protecting employees
Accident Insurance: Ensure Protection During Arrival and Departure
The statutory accident insurance is crucial for safeguarding employees during a company outing. It particularly applies during the journey to and from the venue. However, this protection is subject to certain conditions, which are explained in detail below. It is important for employers and employees to understand the insurance details to ensure they are adequately protected in the event of an accident. The Personio page provides more information on this. GoTuro supports you in taking all necessary precautions to ensure the safety of your employees.
Insurance Protection: Requirements That Must Be Met
For the insurance protection of the statutory accident insurance to apply, certain criteria must be met. Firstly, the company outing must be initiated by the employer. Secondly, the event must take place during working hours or at least be treated as such. Another important criterion is the equal treatment of all participants. This means that all employees must have the same opportunities to participate, and no one should be disadvantaged. If these requirements are met, employees are protected by statutory accident insurance during the arrival and departure as well as during the event itself. GoTuro ensures that all criteria are met so that your employees are optimally protected.
Set Clear Boundaries: Define the Start and End of the Company Outing
To avoid jeopardizing insurance protection, it is essential for the employer to clearly define and communicate the start and end of the company outing. This serves to clearly establish the period during which the insurance protection is in effect. Once the company outing transitions into private activities, the insurance protection automatically ends. It is therefore advisable to clearly inform employees when the official part of the outing is over and from when they act at their own risk. Clear communication regarding the boundaries of insurance protection can help prevent accidents and facilitate handling in case of damage. GoTuro supports you in clear communication and helps you optimise insurance protection. To further enhance your employees' safety, you should consider the following points:
Safety Briefing: Inform your employees of potential hazards and behavioural rules before the outing.
First Aid Equipment: Ensure that first aid equipment is available and that there are people who can assist in emergencies.
Emergency Plan: Create an emergency plan that includes all important information and contact persons.
Voluntary and attractive: How to ensure employee participation
Voluntary Participation as Key: Avoiding Coercion, Encouraging Motivation
Participation in a company outing is fundamentally voluntary. This means employees cannot be forced to take part. It's important to emphasise this, as forced participation can often lead to resentment and demotivation. Instead, the company outing should be presented as an attractive opportunity that allows employees to get to know each other better outside of the work environment and strengthen team spirit. Open communication and transparent planning can help increase willingness to participate. GoTuro assists you in creating an outing so appealing that participation naturally increases.
Alternative Options: Fulfilling Employment Law Obligations
Employers are required to offer employees who do not wish to participate in the company outing an alternative work option. This ensures that employees are engaged in a meaningful activity during regular working hours. If an employee cannot attend due to illness, a medical certificate is necessary. It's crucial that employers and employees are aware of these regulations to prevent misunderstandings and conflicts. GoTuro supports you in considering all legal aspects and finding a fair solution for all employees. Clear and transparent communication about alternative options is key to ensuring all employees feel they are being treated fairly.
Integrating Training: Creating Value, Increasing Participation
Even if a company outing is combined with a training session, there is no automatic obligation to participate, especially if the event takes place outside regular working hours. Participation in such events is usually voluntary. However, it is advisable to inform employees about the content and benefits of the training to boost willingness to participate. An interesting and informative training can be an additional incentive to join the outing and expand one's knowledge. GoTuro assists you in integrating training that's both informative and entertaining, thereby increasing willingness to participate. Combining team-building activities with training can significantly enhance the value of the company outing and further motivate employees.
Professional conduct: Avoid disciplinary measures through clear rules
Observe Etiquette: Professional Conduct Outside the Office
Even during a company outing, employees are expected to behave professionally and adhere to the usual etiquette. This is especially true in interactions with colleagues and superiors. Even in a relaxed atmosphere, professional boundaries should be maintained. Treating each other with respect ensures that all participants feel comfortable and that the company outing becomes a positive experience. GoTuro supports you in creating an environment where all employees feel comfortable and respected.
Consequences of Misconduct: Clearly Communicate Disciplinary Measures
In cases of serious misconduct during a company outing, disciplinary measures may be taken. These include physical altercations, insults, or sexual harassment. Depending on the severity of the offense, consequences can range from a warning to dismissal. It is therefore important for all participants to be aware that certain codes of conduct apply even outside the workplace and breaches of these rules can have consequences. GoTuro recommends clearly communicating the code of conduct before the outing to avoid misunderstandings and promote positive interactions.
Benefits of Professional Conduct: Positive Working Environment and Legal Security
Professional conduct during a company outing offers numerous benefits:
Positive Working Environment: Treating one another with respect ensures a pleasant and productive environment.
Avoidance of Legal Issues: Following codes of conduct protects against potential legal consequences.
Enhancement of Company Image: Professional conduct reflects the company's values and strengthens its positive image.
GoTuro helps you realize these benefits by assisting in defining and communicating clear codes of conduct. This way, you can ensure that your company outing is a complete success and sustainably strengthens the team.
Involve the works council: Harness co-determination for smooth operations
Restricted Rights: Accurately Assessing the Co-Determination of the Works Council
The co-determination rights of the works council are generally restricted when planning and organising company outings. This means that the works council cannot participate in all aspects of the company outing. However, there are certain exceptions where the works council's co-determination is required. It is important to know and respect the rights of the works council to avoid conflicts and ensure smooth planning and implementation of the company outing. GoTuro supports you in optimally coordinating with the works council.
Reward Character: When the Works Council May Participate
If the company outing serves as a reward or bonus for employees, the works council has a co-determination right. However, this does not apply if participation in the company outing is individually agreed upon with the employee. In this case, the works council's co-determination right does not apply. It is important to observe these regulations to avoid conflicts with the works council and ensure smooth planning and implementation of the company outing. GoTuro advises you on how to optimally involve the works council and find a satisfactory solution for all parties.
Integrating Remote Teams: Designing Corporate Outings for Distributed Teams
Personal Encounters: Recognising their Importance for Remote Teams
In times of remote work, personal encounters during company outings gain special significance. They provide an opportunity to strengthen team collaboration and enhance employee motivation. Company outings allow employees to get to know each other better and build relationships outside of digital communication. This can positively impact team collaboration and the working atmosphere. GoTuro helps you design company outings tailored specifically to the needs of remote teams.
Locations and Time Zones: Adapting Company Outings to Remote Teams
When planning company outings for remote teams, it's important to consider the specific needs of employees. This includes taking into account different locations and time zones. It's also crucial to ensure that all employees have the opportunity to attend the company outing, regardless of their place of residence. Careful planning and organisation are therefore essential to ensure the outing is a positive experience for everyone involved. GoTuro helps you overcome logistical challenges and organise a company outing that is accessible and attractive to all remote employees. This can be achieved, for example, by choosing a central location or organising regional meetings.
Benefit in the long term: Strengthen team spirit through successful company outings
More useful links
Wikipedia provides a detailed explanation on the topic of company events, covering the legal and organisational framework.
Steuerberaterkammer Stuttgart offers information and resources on tax law, including the tax treatment of company outings.
FAQ
What is a company outing and why are travel expenses important?
A company outing is an event organised by the company to promote team spirit. The travel expenses are an essential part of the planning and must be handled correctly for tax purposes to avoid discrepancies.
What tax advantages are there for company outings?
The 110-euro rule allows a tax-free amount of up to 110 euros per employee per year for a maximum of two company outings. This amount also includes the travel expenses.
What happens if the costs per employee exceed the allowance of 110 euros?
If the costs exceed the allowance, this results in a 'taxable benefit', which must be taxed either through regular income tax or at a flat rate of 25%.
Is there an obligation for the employer to fully cover the travel expenses?
In principle, there is no general obligation to fully cover the costs. Cost distribution can be agreed individually, with transparent communication being crucial.
How is insurance coverage arranged during the journey to and from the company outing?
The statutory accident insurance applies during the journey to and from the company outing, provided it is initiated by the employer and takes place during working hours or is treated as such.
Is participation in a company outing mandatory?
Participation is essentially voluntary. Employees who do not wish to participate must be offered an alternative working option.
What role does the works council play in the planning of company outings?
The participation rights of the works council are generally limited, unless the company outing serves as a reward or bonus.
How can company outings be organised for remote teams?
In-person meetings are particularly important for remote teams. Planning must consider different locations and time zones to enable participation for all.
