Germany, like many countries, has complex rules on allowable expenses, tax-free reimbursements etc. German employees are usually familiar with the expense rules and expect their employer to follow these. For instance, a German employee can often get a tax free payment if he is travelling on a business trip. The amounts are not necessarily high but over time they can add up. And if you can give an employee tax free money then you should!
As part of our overall payroll service in Germany, we will help you and your employee with the expense reports in order to ensure they comply with German regulations.