s@tXrkm · Why use it
s@tXrkm, why use it?
There can be several reasons. Let us explore them together.
First, consider whether your business circumstances justify managing mileage reimbursements, with a few questions only you can answer:
- I am a director. Do I have customers, suppliers or business contacts outside the municipality where my company/association is based?
- Do I have employees who use, or could use, their own vehicles for business?
- Given the above, do I have an actual or potential flow of trips that could be handled through mileage reimbursements?
If you answered yes to at least two of these questions, we recommend reading on.
I already use Excel or something similar. What is the advantage?
Unless you belong to a sizeable business group with its own application developed and adapted to specific needs, you are probably among the many using a conventional Excel spreadsheet to generate reimbursements.
In that case, the issues associated with solutions based on individual employees, even when tax-compliant in themselves, raise a few questions:
- How much time must my staff spend preparing expense reimbursements each month?
- How accurate are the distance figures entered?
- How much time must I spend checking everything?
- Are the locations entered in the various reimbursements actually justified by business use?
Answers:
- s@tXrkm was designed to minimise the time needed to prepare mileage reimbursements.
- The data used in s@tXrkm comes from leading global providers such as Google Maps, TomTom, OpenRoute and MapBox, providing dependable figures.
- s@tXrkm lets you check, approve or reject anything from an individual trip to an employee's entire reimbursement in one place.
- s@tXrkm lets users request approval for one or more locations in advance. These locations must be authorised before they can be used in any mileage reimbursement. Once approved, a location is available throughout your organisation.
I include reimbursements in payroll but do not manage the required documents
If you include mileage reimbursements in payslips but do not keep the necessary supporting documents available for tax inspections, be aware that this can become a significant problem.
Simply including the item on payslips, or withdrawing funds labelled as mileage reimbursement in the case of directors, is not enough.
In the event of an inspection, the Italian Revenue Agency and Guardia di Finanza may disallow the transactions and tax them as income, in addition to imposing penalties on the company/association. Supporting reimbursement documents must remain available for tax inspections for 10 years (Guardia di Finanza) and 5 years (Italian Revenue Agency).
Of course, the choice rests with your organisation's management, but is it really worth the risk when a small investment and very little time can help you comply and avoid problems?
Can I regularise my position?
Provided the company/association already holds the underlying tax documents, s@tXrkm can be used as follows:
- Our application can formally reconstruct actual mileage reimbursements and their supporting documents for up to five years before 2023.
- The process is fast, with effort reduced to a minimum.
- Of course, s@tXrkm alone cannot work miracles and some time is still required, but at least you will have reconstructed the documentary record to justify the payments made.
Tax savings: I do not use mileage reimbursements even though private vehicles could be used for business
Mileage reimbursements have long been used by companies and associations. They allow significant tax savings on employee/member costs and for directors.
Savings range from a minimum of 26% to around 40%.
They are fully deductible in the current financial year, unlike company vehicle purchase/leasing solutions.
The company's tax benefit can be full for reimbursements to employees/members, including travel within the same municipality as the company/association/branch.
It is partial for directors, who are entitled to tax deductibility only for journeys outside the tax domicile of their company/association/branch. (For directors too, trips always start at the company/association/branch premises and proceed to another municipality. The same applies to the return journey.)
Two features dedicated to directors
Delegating reimbursements
Delegate preparation of your mileage reimbursement to another advanced user or administrator. A very convenient way to transfer the time commitment to office staff rather than preparing it yourself.
Predictive AI feature
A forecasting algorithm designed and built by De.Mi. Consulting, which processes and cross-references previous data to create mileage reimbursement forecasts based on the user's habits.
Once you have found the option closest to the actual month being processed, you can make the manual adjustments needed to ensure the reimbursement matches what actually happened.
Preparing a reimbursement forecast for one month takes an average of 15–20 seconds. Subsequent manual changes take a few minutes.