Table of Laundry Costs: A Complete Guide for Businesses
For many companies, laundry costs represent a significant deductible expense. You need to be familiar with the tax and social security rules governing these expenses, particularly in terms of social security contributions. This guide sets out the applicable table of laundry expenses, the conditions for deduction and the reimbursement procedures for your employees. These reimbursements are part of the broader framework of professional expenses that your company can cover.
What is the Table of Laundry Costs?
The table of laundry costs is an official scale published by the French General Directorate of Public Finances (DGFiP) and generally updated every year to take account of changes in the cost of living. It sets the lump-sum amounts you can reimburse to your employees for the upkeep of their professional clothing. These reimbursements are exempt from social security contributions and income tax within the limits of the established ceilings. The table distinguishes several categories of clothing according to their nature and professional use, and you should consult the current version to ensure that your practices comply.
Categories of clothing concerned
Special Workwear
Specific workwear refers to the clothing required to carry out your professional activity. This category includes smocks, overalls, uniforms and personal protective equipment (PPE). The scale provides for higher lump sums for these garments, which require regular and rigorous maintenance, given their exposure to specific working conditions.
You can deduct these expenses without detailed supporting documentation, provided you comply with the limits set out in the official table. The French tax authorities consider that these items of clothing are essential work tools for your business. In the context of social and payroll management, this distinction is of vital importance in optimizing your charges and exempting you from compulsory deductions.
Streetwear for Professional Use
Street clothes worn in a professional context (suits, tailoring, performance wear) benefit from special tax treatment, with slightly lower lump-sum amounts. You must demonstrate that the clothing is used primarily for business purposes, a point carefully examined by the tax authorities. This condition implies that the clothing must be worn at least 50% of the time for professional purposes, and that it is necessary to represent the company. Certain specialized business sectors, such as banking, the hotel industry or luxury retail, find it easier to justify these reimbursements because of their inherent clothing requirements.
Flat-rate scale amounts
Scale applicable to the various categories
The table of laundry costs establishes lump-sum amounts per type of garment and per period. The official scale sets differentiated daily amounts: specific work clothes benefit from higher lump sums than street clothes, given their greater maintenance requirements. The amounts also vary according to the nature of the professional activity: a worker in an industrial environment or a healthcare professional will justify higher lump sums than an office worker. It is essential to consult the current scale published by the tax authorities for the exact amounts applicable to your sector.
You must apply these lump-sum amounts according to the actual number of days worked by each employee, as the authorities do not accept monthly or annual lump-sum reimbursements that do not correspond to actual presence. This rule ensures that reimbursements correspond to expenses actually incurred, and preserves the tax-exempt status of these sums.
Package Application Conditions
The application of fixed rates requires a written policy defining the categories of employees concerned, the amounts applicable and their consistency with the clothing constraints of your business sector. This policy must specify :
- Eligible types of clothing by professional category
- Flat-rate amounts applied according to the official scale
- Calculation based on days actually worked
- Laundry expenses” must be mentioned on pay slips
You keep all supporting documents for at least 6 years in the event of a tax audit. The absence of appropriate documentation exposes your company to a tax reassessment with increases and penalties.
Tax and social security treatment of reimbursements
Exemption from social security contributions
Reimbursements of laundry expenses made according to the official scale are fully exempt from social security contributions and social security contributions. You do not include these sums in the base for employer and employee contributions. This exemption represents a significant advantage for optimizing your payroll and reducing your total tax burden.
URSSAF regularly checks the compliance of these practices during its audits. You must prove that the amounts paid correspond to the ceilings in the table and actually concern professional clothing. If you exceed the ceilings, the sums will be added back to the social security base.
Tax treatment for the employee
From a tax point of view, reimbursements in accordance with the table are not subject to employee income tax. You do not declare them as taxable income on your annual tax return. This tax exemption is an appreciable advantage for your employees, who benefit from preserved purchasing power.
The tax authorities may challenge this exemption if they consider that the reimbursements do not correspond to actual business expenses. You must therefore maintain solid documentation justifying the professional necessity of the clothing concerned. Employee benefits and business expenses are subject to increased scrutiny during audits.
Alternatives to the flat-rate scale
Reimbursement based on actual receipts
You can choose to reimburse laundry costs on the basis of actual expenses incurred. This method requires your employees to produce detailed invoices. It is administratively more cumbersome, but allows you to exceed the ceilings of the flat-rate scale, unlike other tax systems such as the progressive scale, which impose strict limits.
This option is particularly suitable for companies whose employees incur high cleaning costs. You need to set up a rigorous procedure for validating and checking receipts, integrated into your accounting and tax management. The French tax authorities will only accept invoices issued by cleaning professionals, which must be itemized and signed by the employee.
Provision of laundry services
Some companies prefer to organize the cleaning of professional clothing directly. You can contract an industrial laundry to collect and deliver the garments to your site. This solution eliminates reimbursement issues and simplifies administrative management.
Costs incurred directly by the company are deductible without limit. You must, however, justify the professional nature of the service. This type of organization is particularly suited to the healthcare, catering and industrial sectors.
Implementation of a Refund Policy
Drafting an Internal Policy Note
Setting up a policy for reimbursing laundry costs requires a formal memorandum. This document defines the categories of eligible employees, the types of clothing concerned and the amounts applicable. You should circulate this memo to all employees concerned.
The memo must specify the practical procedures for requesting reimbursement and any supporting documents that may be required. You update this document each time the official scale is modified. This formalization protects your company in the event of an administrative challenge.
Payroll integration
Integrating laundry expenses into your payroll process requires appropriate configuration of your software. You create a specific heading to isolate these reimbursements from other remuneration elements. This distinction facilitates monitoring and social declarations.
Your payroll department needs a clear procedure for calculating monthly amounts based on days worked. You establish controls to avoid calculation errors or double reimbursements. This rigorous management will protect your company from costly reassessments. For other aspects of compensation, see our guide to meal allowances.
Drafting an Internal Policy Note
Setting up a policy for reimbursing laundry costs requires a formal memorandum. This document defines the categories of eligible employees, the types of clothing concerned and the amounts applicable. You communicate this memo to all employees concerned.
The memo must specify the practical procedures for requesting reimbursement and any supporting documents that may be required. You update this document whenever the official scale is modified. This formal document protects your company in the event of an administrative challenge, and guarantees fair treatment for all your employees.
Payroll integration
Integrating laundry expenses into your payroll process requires appropriate configuration of your software. You create a specific heading to isolate these reimbursements from other remuneration elements. This distinction facilitates monitoring and social declarations.
Your payroll department needs a clear procedure for calculating monthly amounts based on days worked. You establish controls to avoid calculation errors or double reimbursements. This rigorous management will protect your company from costly reassessments. For other aspects of compensation, see our guide to meal allowances.
Controls and Recovery Risks
Points to watch during inspections
URSSAF and tax inspections systematically examine reimbursements of business expenses. You must prove that the amounts paid correspond to the official scale and actually concern professional clothing. The inspector checks that your activity is consistent with the categories of clothing reimbursed.
Adjustments generally concern excessive amounts or unjustified reimbursements. You risk being reintegrated into the social security base, with the application of late payment surcharges and penalties. Full documentation of your policy is your best defense.
Security strategies
To secure your practice, you apply to URSSAF for a social rescript. This procedure enables you to obtain official validation of your reimbursement policy. The administration’s response protects you against a subsequent reassessment on the validated points. You can also use tax rescripts to secure the tax aspects of your scheme, particularly with regard to the deductibility of charges.
You can also have your policy audited by an expert in labor and tax law. This independent review identifies areas of risk and suggests adjustments tailored to your business sector. The expert analyzes the consistency between your reimbursements and regulatory requirements, while checking supporting documentation. The investment in this security often turns out to be less than the cost of an adjustment, which can include substantial surcharges and late penalties.
Regularly updating your policy is also an essential security strategy. You revise your procedures whenever the official scale is modified or administrative doctrine changes. For a global approach to your obligations, explore our expertise in business expense claims.
Tax and social security optimization of laundry costs
To optimize your laundry expenses, scrupulously respect the ceilings of the official scale, systematically document your internal policy and combine these reimbursements with other tax-exempt benefits as part of an optimal taxation strategy. This approach enables you to make substantial savings on social security charges (up to 45% of the amount reimbursed) while increasing your employees’ net purchasing power.
Key points to bear in mind: check that your activity is consistent with the categories of clothing reimbursed, maintain complete documentation (policy notes, justification of amounts), and check that reimbursements correspond to days actually worked. The main risks of adjustment relate to excessive amounts, lack of professional justification and lump-sum reimbursements not in line with the scale.
Frequently asked questions
This section provides answers to the main questions raised by the tables of laundry costs for companies, with a particular focus on the tax and legal aspects of their management.
What is a laundry schedule and what are its tax implications for companies?
A table of laundry expenses is a summary document detailing the costs involved in maintaining employees’ work clothing. From a tax point of view, this table is used to justify expenses incurred and determine their deductibility. It becomes particularly important when the company covers these expenses, as it must clearly distinguish legitimate business expenses from benefits in kind potentially subject to social security contributions. This document is an essential piece of evidence in the event of a tax or URSSAF audit.
Are laundry costs tax-deductible for companies?
Yes, laundry costs are tax-deductible under certain strict conditions. The tax authorities accept the deduction when the clothing concerned is specific to the profession and compulsory for the exercise of the activity (uniforms, safety clothing, medical gowns). Expenses must be supported by detailed invoices and correspond to actual, professional expenditure. On the other hand, the upkeep of ordinary clothing worn at work cannot be deducted. The burden of proving the professional nature of the clothing lies with the company, hence the importance of rigorous documentation.
How do I create a tax-compliant laundry cost table?
To create a compliant table, include the essential information: employee identification, precise nature of garments concerned, frequency of laundering, unit and total cost per period. Mention the service provider chosen and keep the corresponding invoices. The table must clearly establish the link between the costs incurred and the professional activity. It is advisable to attach a memo setting out the company’s policy on business attire. This document should be dated and signed by all parties concerned, to reinforce its evidential value in the event of an audit.
What is the difference between benefit in kind and reimbursement of laundry expenses?
The distinction is crucial from a tax and social security point of view. Reimbursement of business expenses, provided it meets the legal conditions, is not subject to social security contributions or income tax. It must correspond to real, justified expenses incurred in the company’s interest. Conversely, a benefit in kind results from the employee’s personal expenses and must be included in the social security contributions base. In the case of laundry costs, only the upkeep of specific professional clothing can be considered a business expense.
What are the best practices for optimizing laundry costs for tax purposes?
There are several ways to optimize laundry costs for tax purposes. Purchase clothing marked with the company logo to facilitate professional qualification. Negotiate framework contracts with service providers to obtain advantageous rates while benefiting from detailed invoices. Establish a clear policy distinguishing between professions requiring specific outfits. Systematically document the professional obligations justifying these costs. Finally, consider setting up a flat-rate allowance rather than reimbursing actual expenses, once you have validated its compliance with the applicable URSSAF scales.
How do you properly document laundering costs to avoid a tax reassessment?
Rigorous documentation is your best protection. Keep all original invoices detailing the services provided. Draw up internal regulations or a memo defining mandatory professional clothing. Maintain a monthly tracking table, reconciling declared expenses with receipts. Take photographs of the clothing concerned to prove its specific nature. In the event of a lump-sum allowance, document the calculation and its compliance with current scales. Keep records for at least 6 years. This complete traceability will demonstrate the professional and reasonable nature of expenses in the event of an audit.
When should I consult a tax expert to manage my laundry expenses?
Given the complexity of the tax and social security rules applicable to laundry expenses, it is advisable to consult a tax lawyer in a number of situations: when setting up a reimbursement policy, when in doubt about the qualification of expenses, before a tax or URSSAF audit, or if your company operates in several jurisdictions. An expert will be able to secure your practices, optimize your tax strategy and represent you effectively in the event of a dispute with the authorities.