Remote Expenses | The Guide to Understand Everything

What to know about telecommuting expenses in wage portage?

You are working from home and have questions about telecommuting expenses? As an employee of an umbrella company, you have the option to declare your professional expenses in the form of expense reports. At Weepo, we guarantee “zero hidden fees” and have decided to reveal the three types of professional expenses related to telecommuting to declare in wage portage. Read this guide and discover how to deduct your telecommuting expenses to reduce your tax bill, lower your charges, and increase your purchasing power.

Fixed expenses in telecommuting

Among telecommuting expenses, there are fixed expenses. These are stable and constant expenses. Generally, they are unlikely to change, regardless of the employee's level of activity while telecommuting.

There are 5 types of fixed telecommuting expenses:

1. The amount of your rent;
2. The amount of your home insurance;
3. The housing tax;
4. The condominium fees;
5. The property tax.

The area of your home to declare is, however, subject to a limit of 10 m². At Weepo, this limit can be increased to 15 m² depending on the size of your home and upon presentation of supporting documents. You can provide the layout of your home or proof of the total area of your residence to your umbrella company.

To estimate your fixed professional expenses to deduct from your gross salary, we take into account the area of your home used for your activity compared to its total area. This allows us to delineate the personal and professional use of your home and establish an accurate estimate.

For example, let's say you telecommute in your 50 m² apartment and reserve 10 m² of professional space for a rent of €600 per month. The calculation is as follows: 600×10/50 = €120 of fixed professional expenses to deduct. If your gross salary is €2,000, only €1,880 will be subject to income tax.

Variable telecommuting expenses

Unlike fixed expenses, variable expenses change based on your level of activity and more specifically on the time you spend telecommuting.

There are two variable expenses:

1. Your electricity consumption: at Weepo, you primarily undertake missions in the digital and IT sectors. Therefore, there is a good chance that you spend several hours in front of your computer, which increases your electricity bill.
2. Your gas and heating consumption: as an IT employee, you are often sedentary, make very few trips, and tend to stay at home more. Thus, you consume more heating.

To estimate the amount of your variable telecommuting expenses, the principle is the same as for fixed expenses. It is the area of your workspace compared to that of your overall residence that is taken into account.

To explain, we base it on this simple calculation: your apartment is 50 m² and you use 10 m² of its space to telecommute. Each month, you consume €35 of electricity. 35×10/50 = €7 of variable expenses per month to deduct.

Exceptional telecommuting expenses

In contrast to fixed and variable expenses, exceptional telecommuting expenses are expenses that you incur occasionally. This is the case, for example, if you take on a new mission that requires additional equipment or subscriptions.

In total, there are 4 types of exceptional telecommuting expenses:

1. Furniture: at Weepo, as an employee in the tertiary sector, you may need to purchase a desk and an ergonomic chair, for example.
2. Computer equipment: if you are a telecommuting IT worker or in the digital field, you will need to acquire a computer that may cost more or less depending on the complexity of your missions. A data analyst or a cybersecurity consultant may need a more powerful computer than a digital project manager, for example. You may also need to acquire headphones or even a second computer screen for greater efficiency if you work on multiple programs simultaneously.
3. Subscriptions to the Internet or software: with your activity focused on digital and IT, you will need an Internet subscription to communicate and work on your clients' websites and data. Sometimes, you may need to acquire other subscriptions such as analysis or monitoring software if you are a cybersecurity consultant, for example.
4. Supplies: as an office worker, you may need to purchase supplies such as notebooks and pens to take notes during your meetings, for example. Sometimes, you will need reams of paper for your printer depending on your daily tasks.

To deduct these exceptional expenses, keep in mind that the use of this equipment and subscriptions is limited to their strict professional use. You cannot claim a deduction for these expenses in the case of personal use. To declare them, you must provide a receipt such as a purchase invoice to your umbrella company. Regarding expenses related to furniture, you are limited to €500 per type of expense.

What to remember

Now you know what telecommuting expenses to deduct from your gross salary with your umbrella company. Here’s a quick recap:

• Fixed telecommuting expenses: these are expenses independent of your level of activity such as rent, housing tax, or condominium fees. They should be estimated based on the area reserved for your workspace in proportion to the total area of your home.
• Variable telecommuting expenses: these are variable based on your level of activity. These are expenses related to electricity or heating. The estimation follows the same principle as for fixed expenses.
• Exceptional telecommuting expenses: these depend on the level and nature of your activity. They concern one-time expenses related to the equipment and subscriptions necessary for your activity. They should be deducted upon presentation of a receipt and are limited to their strict professional use.

Do you want to know more about managing professional expenses as an employee in wage portage? Check out the complete guide on this subject !