DO YOU KNOW THAT… There is no traceability obligation for expense reimbursements?

Art. 1, paragraph 910 of Law No. 205/2017 (the so-called Budget Law 2018) established that, effective from July 1, 2018, employers and private clients must pay to employees their remuneration, as well as any advance, through a bank or post office using one of the following methods of payment: a) wire transfer on the current account identified through the IBAN code specified by the employee; b) electronic payment methods; c) cash payment through the bank or post office where the employer has opened a cash account with payment order; d) check handed out directly to the employee or, in the case of a proven impediment, to a proxy. On this matter, the National Labour Inspectorate (Inl), with memorandum No. 6201 dated 16 July 2018, specified that the aforementioned payment methods concern exclusively the remuneration. Thus, also in the opinion of Inl, their use is not mandatory for money paid for other reasons, such as cash advances for expenses that the employee must bear for the company and in the provision of services (e.g. lodging, meal and travel expense reimbursement).