All you need to know about reimbursing the cost of electrical recharging

In a world where the transition to more sustainable mobility has become a priority, the rise of electric vehicles in France marks a significant step in this evolution. However, this change is accompanied by new challenges, particularly in terms of reimbursement of home recharging costs by employers. This subject, at the crossroads of ecological, economic and legal issues, raises many questions for companies wishing to support this transition while complying with current regulations.

In this context, flat-rate reimbursement of home recharging costs is a potentially advantageous solution, both for employees who use electric vehicles and for employers keen to simplify the administrative management of such reimbursements. It is therefore essential to understand the legal and tax frameworks governing these practices, as well as the implications for relations between employers responsible for a fleet profleet, employees and collection agencies such as URSSAF.

Legal analysis

In the jungle of standards and guidelines governing the reimbursement of business expenses, legal analysis helps guide companies in their electric vehicle charging reimbursement policies. This section demystifies the legal frameworks and critical distinctions between business expenses and benefits in kind, providing a solid foundation for fair and compliant reimbursement practices. It also explores the crucial role of URSSAF in setting reimbursement standards, highlighting the importance of a strict match between expenses incurred by employees and employers' reimbursement policies.

Legal framework and important distinctions

At the heart of discussions on the reimbursement of electric charging costs lies a crucial legal distinction: that between business expenses and benefits in kind. Under French law, expenses incurred by employees for the purposes of their professional activity, such as recharging electric vehicles used for missions or business travel, must be reimbursed by the employer. This obligation is designed to ensure that employees do not incur costs directly related to their employment.

URSSAF's role and directives

URSSAF plays a decisive role in interpreting and applying the rules governing the reimbursement of business expenses. In particular, URSSAF ensures that reimbursement practices implemented by employers are not reclassified as benefits in kind, which would have the effect of increasing the base of social security contributions due. To avoid this, URSSAF requires clear and precise justification of the expenses reimbursed, as well as a match between the expenses incurred and their reimbursement.

Compliance issues

Compliance with URSSAF guidelines is therefore essential for companies wishing to set up electric charging expense reimbursement systems. Such compliance requires a thorough understanding of the criteria defined by URSSAF to distinguish between reimbursements of business expenses and benefits in kind, and the adoption of transparent and justifiable reimbursement practices.

Practical implications for companies

Companies need to navigate this legal framework carefully, implementing reimbursement policies that respect both employee needs and URSSAF requirements. This often involves developing reliable and efficient methods for tracking and validating recharge expenses, to ensure that reimbursements actually correspond to business expenses.

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Repayment scenarios

When it comes to reimbursing employers for the cost of recharging electric vehicles, understanding the different reimbursement scenarios is essential. Each situation, whether involving exclusively professional or mixed use of the electric vehicle, presents specific challenges and opportunities for companies. So what are the best practices for establishing fair and compliant reimbursement policies?

Mixed use and determination of shares

One of the major challenges for human resources managers is managing the reimbursement of recharging costs for vehicles used for both business and personal purposes. The key lies in the ability to distinguish and quantify precisely the proportion of charging costs attributable to business use. This distinction is essential to establish a fair reimbursement in line with URSSAF expectations.

Possible scenarios

• Exclusively professional use: In this case, the employer can reimburse the full cost of the recharge, which is considered a purely professional expense.
• Mixed use: When the electric vehicle is used for both business and personal travel, the employer must determine the proportion of recharging costs to be reimbursed. This determination can be based on detailed monitoring of vehicle use, or on pre-established flat-rate agreements.

Documentation and follow-up

Setting up accurate tracking systems, for example via dedicated applications or in-vehicle devices, can make it much easier to distinguish between business and personal use. These tools can provide reliable data to justify reimbursements to URSSAF.

Flexibility and adaptability

It's crucial for companies to adopt flexible, adaptive approaches to reimbursing recharging costs. By taking into account the specific features of their vehicle fleet, the working habits of their employees, and changes in legislation and regulations.

Reimbursement methods

As we have seen, it is essential to have a good understanding of the methods available and their implications. Today, there are a number of different approaches companies can take to reimbursing these expenses, ranging from actual reimbursements based on precise receipts, to simplified flat-rate solutions. Each method has its own advantages and challenges. It is therefore important to choose the strategy best suited to each company's specific needs and sustainable mobility objectives.

Actual reimbursement

The actual reimbursement method requires employees to provide precise proof of the recharge expenses incurred. This approach guarantees a high degree of accuracy and a perfect match between actual expenses and the amounts reimbursed. However, it can also prove cumbersome in terms of administrative management, both for employees and for company accounting departments.

• Advantages : Accurate, easy to demonstrate compliance.
• Disadvantages : Administrative complexity, need to collect and retain supporting documents.

Flat-rate reimbursement

The flat-rate reimbursement of home recharging costs offers a simplified alternative, based on a fixed amount allocated to the employee to cover the recharging costs associated with business use of the vehicle. This method requires an initial estimate of average recharging costs, but considerably reduces the administrative burden of collecting receipts.

• Benefits : Simplicity, reduced administrative burden.
• Disadvantages : Risk of discrepancies between lump sums and actual costs, need for accurate initial assessment.

Selection criteria and best practices

The choice between actual or flat-rate reimbursement depends on a number of factors. In particular, the size of the company, the number of electric vehicles in use, employees' travel habits, and the company's ability to manage the administrative aspects associated with each method.

• Transparency and communication: Whatever method you choose, it's crucial to establish clear reimbursement policies and communicate effectively with employees to ensure mutual understanding of procedures and expectations.
• Periodic review : Reimbursement policies must be regularly reviewed and adjusted in line with changes in recharging costs, travel habits and employee feedback.

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Understanding the reimbursement of electric charging costs

French regulations establish a precise framework for the reimbursement of business expenses, including those related to recharging employees' electric vehicles. By law, expenses incurred by an employee on the instructions of his or her employer are considered business expenses. Under Articles L136-1-1 and L242-1 of the French Social Security Code, these must be excluded from the basis for social security contributions. To ensure this exclusion, the employer must justify that the expenses were incurred at his request and in the company's interest, and be able to prove the amounts spent by the employee by means of invoices.

Charging at work

When an employee uses a charging station provided by his or her company, no additional compensation is required. Energy consumption is charged directly to the company's electricity bill. The installation of charging stations can therefore offer a practical solution for employees, while enabling the company to control costs.

Home recharging

The reimbursement of energy consumed for business purposes at home requires special attention. Several options are available:

• Connected terminal: Installing a connected terminal in the home makes it possible to clearly separate personal and professional use, making it easier to monitor and reimburse professional consumption.
• Flat-rate recharging: An alternative is flat-rate reimbursement, where a fixed amount is allocated to cover the cost of home recharging, based on an estimate of the number of recharges required per month.
• Expense claims: The company may also choose to reimburse expenses on the basis of actual costs, provided that the employee can justify his or her consumption by reliable means, such as a sub-meter or a specific recharging subscription.

Public charging stations

For employees obliged to use public pay stations, there are two main reimbursement methods:

• Expense claims: Employees can be reimbursed for the use of public terminals by submitting detailed expense claims.
• Energy card: A practical solution similar to fuel cards, enabling employees to pay for their recharging at public stations at the company's expense.

To sum up, there are several ways of reimbursing the cost of electric recharging for business vehicles, depending on where the recharging takes place. The use of home-connected charging stations or the provision of energy cards for public charging stations are solutions that facilitate the management of these expenses, while ensuring their compliance with current legislation on business expenses.

Relations with URSSAF

Interactions with URSSAF are a critical aspect in the implementation of charging reimbursement policies for electric vehicles. This section focuses on the importance of compliance with this body's guidelines, highlighting best practices for maintaining harmonious relations. A well-informed, proactive approach to URSSAF can not only avoid the risk of reassessment, but also secure reimbursement practices within the current legal framework.

Importance of compliance

Relations with URSSAF are crucial for companies reimbursing the cost of charging electric vehicles at home. Compliance with URSSAF guidelines not only guarantees the legality of reimbursements made, but also protects companies against the risk of reassessment for non-compliance with social security contribution rules.

Documentation and justification

Rigorous documentation of reimbursement policies and transactions is essential. Companies must be able to justify the amounts reimbursed, demonstrating their direct link with the professional use of electric vehicles. This implies keeping receipts for actual reimbursements, or establishing clear, justifiable criteria for flat-rate reimbursements.

A proactive approach to relations with URSSAF is recommended. Companies can, for example, apply for a rescrit social to validate their reimbursement policies in advance. This process provides official confirmation that the company's practices are compliant, thus reducing the risk of unpleasant surprises in the event of an audit.

Adapting to regulatory changes

URSSAF rules and guidelines may evolve, particularly in a context of energy transition and the growing adoption of electric vehicles. Companies must therefore remain attentive to legislative and regulatory developments, and be ready to adapt their reimbursement policies accordingly.

Dialogue and collaboration with URSSAF are key to successfully navigating the complex regulatory framework for reimbursing electric charging costs. Open and regular communication can help anticipate problems and find compliant and practical solutions.

Tools to facilitate electric charging declarations

As part of the energy transition and the growing adoption of electric vehicles, companies are turning to innovative solutions to manage charge declarations at a charging station. Among these solutions, Bump's management platform and mobile application stand out for their efficiency and ease of use.

Benefits for companies and employees

These digital tools offer an integrated solution for tracking and managing refills, which is essential for several reasons:

• Precise consumption monitoring: They enable detailed tracking of energy consumption for each recharge, which is essential for effective cost management and budget planning.
• Simplifying reimbursements: For companies that reimburse their employees for home recharge expenses, these platforms make it easier to collect and verify the data needed to make these reimbursements fairly and transparently.
• Optimizing the use of charging stations: These tools help to optimize the use of available charging stations, for example, by allowing you to reserve charging times or prioritize certain recharges according to operational needs.
• Maintenance and assistance: They also offer preventive and corrective maintenance functions, alerting fleet managers in real time to any technical problems with charging stations.

Bump makes declarations easier

The Bump solution for managing the recharging of electric vehicles in companies stands out for its comprehensive, integrated functionality.

A dedicated supervision platform for fleet managers: 

• Real-time overview: track the status and usage of your charging station fleet at all times.
• Alerts and notifications: Receive alerts in the event of incidents on a terminal, for rapid intervention and efficient maintenance.
• Consumption tracking: Monitor your employees' consumption and the cost of recharging, for better cost management.
• Easy reimbursement: Manage the reimbursement of home refills for your employees directly from the platform.

The Bump mobile application to facilitate employee commuting: 

• Journey planning: Help your employees plan their journeys by identifying routes and available charging stations.
• Switch pro/perso: The employee can define the origin of the load, whether it is for personal or professional use.
• Tariff consultation: Access tariff information for over 350,000 Bump terminals in Europe.
• Recharge management: Allow employees to start and track their recharge sessions via the app, offering a seamless transition between business and personal use.

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These tools are designed to meet the specific needs of companies committed to the electrification of their fleets, offering a simplified solution for managing charging infrastructures, monitoring consumption, and reimbursing home recharges, thus contributing to more sustainable and efficient mobility. Need to equip yourself with recharging solutions? Find out about the grants available in 2024!