- 03 Sep 2010
The instructions for employers that the NSSO has just published for the third quarter of 2010 contain an interesting novelty: the NSSO has inserted a table containing the flat rates which it accepts, under certain conditions, as reimbursement of costs which are for the employer to bear.
In principle, the reality and the exactitude of the costs which are for the employer to bear have to be proved by the employer with the help of supporting documents.
Since 1 January 2010, the burden of proof rests on the employer in the event the NOSS contests the costs in question. If the employer cannot provide this proof, the concerned amounts are considered as remuneration subject to social security contributions.
The NSSO accepts, however, a flat-rate assessment of the low costs which are difficult to prove with the help of supporting documents.
In its instructions for employers for the third quarter 2010, the NSSO details the costs for which it accepts a flat-rate assessment (under the condition, of course, that they correspond to costs actually incurred).
The maximum amounts and the applicable conditions for the NSSO to accept those flat rates are also mentioned. If the costs incurred are higher than the flat rate, the system of the costs actually incurred has to be used for all the costs.
The summary table can be consulted via the following link:
However, the NSSO specifies that the employer has to be able to motivate, at its request, the established cost reimbursement policy (collectively as well as individually) by producing, when necessary, adequate written documentation.