Payment of business trips is not only an opportunity to travel at the expense of the company, but also a responsibility that imposes a number of restrictions on the freedom of movement on the part of the employee. Some believe that a free trip and a minimum of work is something to strive for in cases where the employer appoints people responsible for tasks outside the city or country. How great: you can relax and get a little bored at conferences. However, far from everything is not as it seemed at first glance.
What can be considered a business trip?
According to article 167 of the Labor Code of the Russian Federation, a business trip is a trip for a specified period at the expense of the employer to perform official duties outside the "walls" of the office. A prerequisite is crossing the border of the country, that is, traveling to another city is not a business trip. This takes into account the days of departure and arrival, as mandatory for inclusion in this period of travel. The employee remains at his official place, but the work schedule outside the country is not set by the sending company.
It is also allowed to consider as a business trip in exceptional cases those trips that require departure to a neighboring city. This rule applies to those posts that are not related to the constant need for crossing the border, for example, a taxi driver. He can travel out of town daily, but at the same time, travel time there is not considered a business trip. The situation is different with officials who occupy jobs in offices, and sometimes they need to go to another city to improve their skills and take courses. All expenses are borne by the employer, as this is in his competence, and the employee's right to refuse to undergo testing and training is reserved.
Additional Travel Differences
A trip abroad involves some exceptions to the rule. They are mainly associated with time and time costs. Suppose an employee is sent to another country where he must stay for a week in order to have time to visit the exhibition or get acquainted with the supplier’s new products. The flight is delayed, and the employee is forced to stay in another country on his personal money:
- Pay for a hotel room.
- To eat.
- Use transport by country / city.
- Carry the necessary accessories for care and hygiene.
All expenses must be supported by checks and receipts, so that, after returning to work, back up the material support for the return of funds. If we are talking about a trip to another city, then payment of travel expenses is made only partially - transport and food.
What exactly does the company pay for?
The company bears all travel expenses of one or a group of employees. The price includes not only travel, accommodation, tickets and visits to certain museums or exhibitions. Payment of travel expenses also includes obligatory payments:
- Health insurance.
- Personal insurance.
- Baggage payment and insurance.
- Declaration of the declared amount.
- Insurance premiums for car rental (if the employee does not have personal or official transport).
Weekends are also taken into account, since a person is forced to be on a mission outside working hours in connection with an order to leave. Payment of travel expenses on weekends is calculated separately and is reflected in the financial statements as one-time expenses or daily expenses. This is necessary so that a person can eat something and move around. The remaining excesses (going to theaters, museums, cafes, restaurants, shopping) the employee provides for himself.
The order of payment of business trips: when are money issued and returned?
First, an order should be issued in the name of the employee, who, in the opinion of the authorities, is competent in matters requiring a decision abroad. These should be officials who fulfill certain obligations and meet the selection criteria for the place. In other words, if an employee does not know a foreign language, the authorities are obliged to pay him an interpreter, if necessary for negotiating with the inviting company. After reviewing the order, the employee signs it and receives an advance for booking tickets and renting a hotel no later than 24 hours before departure.
Important! The advance payment should be 50% of the amount allocated for the trip. It should cover all costs that are provided for while staying abroad. Payment of daily travel expenses does not apply to mobile communications and mobile Internet traffic.
The remaining half of the amount will be needed to recalculate the remaining expenses, which will be considered unforeseen or additional. The employee provides checks on them, and only upon arrival home he can count on damages. For example, a driver was provided that provides mobility. A separate travel allowance is allocated for him, associated with the repair of the machine, replacement of parts, supply and refueling. Another employee cannot claim reimbursement of transport costs, as a transfer and a personal driver are provided.
Another case, if tickets were ordered, but the flight was delayed. The employee was urgently called back, and he had to buy bus tickets for personal money. Then the costs are reimbursed. When there is absolutely no money, the company sends them to the recipient's account in the fastest and most convenient way.
When is it beneficial for the traveler?
Traveling for work is not always associated with personal costs. There are cases in which the sending party reimburses the cost of food, and the employee remains “in positive territory”. This applies to the moments when the receiving party pays all expenses for meals within the hotel where the person is staying, or spent out of personal money (the guest arrives at the house / apartment). At the same time, 50% of the costs provided for a citizen’s food are returned to him without the need to present checks for the purchase of food or prepared food in restaurants and cafes.
This is provided by law, and is due to the fact that a person has the right to refuse food, which is undesirable for him because of his health. Therefore, he can buy something to his taste and need, but payment of business days will be made in the manner prescribed by law. Sometimes expenses can be reimbursed by mutual agreement of the employee and the boss.
Payment of travel expenses: travel and communication at the weekend
If a person is forced to carry out work activities on weekends, for example, the conclusion of contracts or their signing, then mobile communication must be paid. Such unforeseen but anticipated expenses may be partially or fully reimbursed by common agreement. In practice, it often happens that a business trip abroad may include not only a different time zone, but also days of the week or seasons.
- If the employee was sent to the United States, where Sunday is considered a working day, then the cost of the day will be reimbursed at 100%. However, trust should not be neglected, as it will also have to be proved.
- If the traveler makes his way to South Africa, then seasonality and changing seasons are also taken into account. For example, “from winter to spring” to fly with suitcases of winter clothes - this is an additional load of removable underwear for the warm season. Payment for luggage storage is divided in half if the parties agree: the employee does not take a lot of things - the manager pays, there is an advantage due to the employee's fault - the costs are there.
The same thing happens in other cases when there are disagreements and contentious issues regarding costs. Sometimes payment of business days implies its exceptional occurrence due to the fault of the company, but this fact should be proved to the employee. It is important to consider some other circumstances that affect the separation of obligations.
Salary
Does the boss have to pay salary while the employee is abroad? This is a controversial issue, since the employee is already carrying out his activities, receiving deductions. On the other hand, he spends his free time, which he could spend with his family or on vacation from work. And instead, he is forced to work on the weekend, but only at the expense of deductions for the trip.
Since payment of travel expenses on weekends is only partial, you should pay man-hours to the employee, evaluating his contribution to the development of the company at a base rate in accordance with the signed employment agreement. The salary should not affect additional trips, if it is in the interests of the company, and the person is obliged to fulfill his authority. But the motive may be a mirror situation, when overtime on a business trip can affect the size of a one-time payment. This means that per diem, according to Part 1 of Art. 168 of the Labor Code of the Russian Federation are added to the salary rate.
What affects the size of per diem in different structures of organizations?
Payment of daily subsistence allowance does not depend on the country and location of the person. According to the decision of the Supreme Court No. CAS 05-151 of 04/26/2015, per diem is paid in full until departure. If they were exceeded, they are required to be reimbursed by management. These are “pocket expenses” necessary to perform work outside a permanent place of employment in connection with work moments or job assignments. It is worth noting that the money is paid from the general budget, which forms the state fund.
If an employee belongs to a budget organization, then she has a separate fund, from where the money comes for such expenses. We are talking about the Ministry of Internal Affairs - the social and medical aspects of this organization are fully provided by the state, having nothing to do with insurance and welfare funds for citizens working in non-state type posts.
Here, the payment of travel expenses in budgetary institutions depends entirely on the state type of management and supply of units. When it comes to military service, the deductions are somewhat higher than in non-state structures or private entrepreneurial firms. “Since duty and commission for the employee is the task of the country, then the country pays for the expenses.”
Travel Taxes
For the current reporting period, the following law applies: there are no minimum and maximum restrictions for organizations, that is, each company can set its own payment limit to provide an employee for a day outside the workplace. However, if he leaves for a few hours, then the per diem is paid in full, as this is not a gain, but a cost.
Small enterprises try to limit themselves to a daily allowance of 700 rubles, because the amount is not taxed in accordance with paragraph 3 of Art. 217 of the Tax Code. Personal income tax will have to be deducted from the amount that makes up the difference in excess of the established minimum.
Important! If the employee goes abroad, then the limit of the tax-free amount is 2500 rubles. Payment of travel expenses in a budgetary institution occurs in exactly the same way.
Example of calculation of deductions from daily payments
Suppose that Mr. Petrov went on a business trip for 5 days, of which 2 days fell on a weekend. He is entitled to 1000 rubles for each day spent in another city, as the authorities decided. Of these 5,000 rubles, an amount equal to 5 * 700 = 3,500 rubles is not taxed. The remaining one and a half thousand are subject to taxation and payment of insurance premiums.
When traveling abroad for the same 5 days, a person receives 3,000 rubles a day. Out of 15,000 rubles, the amount of 2,500 rubles remains, which is subject to personal income tax withholding and contributions. Moreover, in no case is the presentation of checks and receipts required.
What documents should be presented?
It’s worth starting with transport right away - if traveling by car, the accounting department issues a waybill where checks and receipts for paying for fuel and other supplies are written out. Tickets for airplanes, trains and buses should be kept until returning home. The passport with marks on the border crossing should also be marked out for attachment to the waybill. For city trips within the country, reporting on assignment is necessary - this is a sheet showing the official list of obligations.
If the hotel was booked personally by an employee, then it is worthwhile to find out in advance whether they have Form No. 3-G for issuing to guests. Otherwise, accommodation will be at the expense of the employee, since such organizations do not need CCM. When issuing a memo (for budget organizations), you should additionally attach tickets with the date of departure and arrival. Payment of travel allowance on weekends may be forced if a local act is drawn up and an order in the form of T-9 has been signed. These documents take precedence over the laws that govern accountants. They must first be taken into account so as not to overpay travel compensation.
The main difference between budgetary and private enterprises is the mandatory provision of an employee who is “through the fault” of management outside the country. It is important to do everything so that the employee can timely and thoroughly complete all the tasks of the company. Private firms are rarely interested in such payments, since it is always necessary to fill out additional documentation and deduct tax payments. Therefore, check in advance everything that will be drawn up and signed in your name. Also find out which organizations outside the city or country issue the relevant documents. Sometimes it’s quite difficult to get a ticket in public transport to prove the fact of a trip on official business.