Article
The Greek economy: The two-speed path and disposable income
Questions
Is income transfer costs for the employee?
The administrator-partner of the IKE Domestic Company goes on a trip to close an agreement or to provide services provided by IKE, He pays these expenses (fuel, dinners, accommodation) with his personal card and then prepares an expense report by entering the original receipts present. and if the company pays it by making a deposit to his personal account,
is there a question about deductibility of the cost?
Is there a question of charging a digital transaction fee?
Answer
- Accommodation costs and travel expenses, as long as the provisions mentioned in no. first KEME.EP 13280/26.5.2015 document, which does not represent income for the employee (on return with legal documents).
- It cannot, on the one hand, be a benefit in kind to pay sums of money to the employees and the movement costs are not covered by documents issued in the name of the paying company, on the one hand, since the payment is in money. does not constitute such a benefit (POL. 1113/2015), on the other hand, the amounts paid to the employees are extraordinary fees and are taxed cumulatively with the amounts reduced for tax purposes according to the scale of paragraph 1 d ‘Article 15 of the Law. 4172/2013 regarding CFE
- Amounts representing extraordinary fees and increased earnings are not subject to Digital Transaction Fee, in accordance with Law 5135/2024.
- Since you are referring to extraordinary fees paid by the company to the manager, the income from them covers the existing assumptions based on personal purchases (payment with his own financial resources), of the manager.
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Management of employee hospitalization
Can you please let me know how we will manage the period an employee is in hospital during the payroll calculation? How will the days in hospital be calculated?
Answer
The Tenant is entitled during the unexplained barrier and as long as it lasts, according to article 658 of the Civil Code. the employer’s obligation, the salary he would receive if he came, during the corresponding time, and if he offered his work, which includes salary, in the sense of the above provisions, all kinds of additional benefits paid to him regularly and continuously as compensation. for the work provided for under the same such as surcharges for working on Sundays, special days and nights, surcharges for legal overtime etc. (Document 2039/30.8.1996).
Article 658 of the above-mentioned code includes the following: “The period of time during which, according to the previous article, the demand for wages is kept in the event of an obstacle, may not be longer than one month, if it is clear that the obstacle was there at least.” one year after the start of the contract, and half a month in any other case. The claim for this period exists even if the employer terminated the lease because the obstacle gave him this right”.
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Source: www.e-forologia.gr
Interview Between Time.news Editor and Dr. Maria Nikolaou, Economic Expert
Time.news Editor: Welcome, Dr. Nikolaou! Thank you for joining us today to discuss the current landscape of the Greek economy, particularly in relation to disposable income and the complexities surrounding employee reimbursements.
Dr. Maria Nikolaou: Thank you for having me! It’s an important and timely topic, especially with the financial shifts we’ve been observing in Greece.
Editor: Absolutely! The article we’re referencing outlines a two-speed path for the Greek economy. Can you explain what that means in terms of income inequality and disposable income?
Dr. Nikolaou: Certainly! The two-speed economy refers to a scenario where different sectors or regions within a country experience varying rates of growth and development. In Greece, we see that urban areas, particularly Athens, are thriving, while rural regions are lagging. This creates disparities in disposable income; some individuals are experiencing economic growth, while others are struggling to make ends meet.
Editor: That sounds concerning. How do employee reimbursement processes contribute to this issue?
Dr. Nikolaou: The reimbursement process can indeed complicate matters. As highlighted in the article, when employees incur costs for business trips—like fuel, meals, and accommodation—they often pay upfront, and this can impact their disposable income. If a company compensates them afterward, it can lead to cash flow challenges, particularly for lower-income employees.
Editor: Very interesting. The article mentions legal considerations regarding the deductibility of these expenses. What should employees know about claiming these costs?
Dr. Nikolaou: Employees need to ensure they keep thorough records. According to the regulations, accommodation and travel expenses can be deductible if proper documentation is provided. However, if the costs aren’t backed by company-issued receipts, employees might face difficulties proving these expenses are legitimate, impacting their tax obligations.
Editor: There’s also the mention of digital transaction fees—can you illuminate how these fees play a role in the reimbursement context?
Dr. Nikolaou: Of course! As per recent legislation, certain extraordinary fees paid to managers are exempt from digital transaction fees. This means that if a manager incurs costs and is reimbursed through a digital transaction, they won’t be taxed on that specific reimbursement. However, it’s crucial that all transactions are documented correctly to avoid any issues with tax authorities.
Editor: It sounds like careful financial management is essential. Do you think that the current policies are adequate in supporting employees?
Dr. Nikolaou: They have improved, but there are still gaps. Policy adjustments could offer better protections for employees, especially at the lower-income level. Enhanced transparency and access to information regarding deductions and reimbursements could empower employees and help them navigate these complexities.
Editor: That’s a great point. What changes would you advocate for regarding employee reimbursements in Greece?
Dr. Nikolaou: I would suggest clearer guidelines that outline the reimbursement processes, alongside education programs for employees to understand their rights fully. Additionally, promoting digital record-keeping solutions could streamline the process, reducing delays in reimbursements and minimizing cash flow issues.
Editor: Thank you, Dr. Nikolaou, for sharing your insights! Your expertise is invaluable as we navigate the complex landscape of the Greek economy.
Dr. Nikolaou: Thank you for having me! It’s essential for us to keep discussing these issues to advocate for a fairer economic environment for everyone.
Editor: Absolutely! We look forward to more discussions as these topics evolve. Thank you to our readers for joining us today, and until next time!