Practical guide
Managing expense reimbursements to the concierge
Where a building concierge is still employed, they sometimes pay for small expenses on the building's behalf: cleaning supplies, minor maintenance items, urgent purchases authorized by the property manager. These amounts must be kept strictly separate from the wages governed by the national collective agreement for building employees, otherwise labor cost and management expenses get mixed together, affecting payslips, social security contributions, and the financial statement. This guide explains which receipts to collect, how to record a reimbursement so it does not become taxable income for the concierge, how to keep payments traceable, and how to allocate the expense among owners according to the ownership shares or the criteria set out in the building bylaws.
Reimbursement versus wages: the distinction that matters
The concierge's employment relationship is governed by the national collective agreement for building employees, which sets base pay, seniority increments, allowances, and social security contributions. An expense reimbursement is not wages: it is the return of an amount the concierge advanced out of pocket on the building's behalf, for example buying detergent, waste sorting bags, small equipment, or covering an urgent job before the usual supplier could step in.
Mixing up the two categories has real consequences: if an amount that is actually part of compensation gets recorded as a reimbursement, it escapes the taxable and contributory base, creating exposure in the event of an inspection. The practical test is simple: if the concierge spent their own money and asks to be repaid against a receipt, it is a reimbursement; if the manager is recognizing an amount for work performed, it is wages and belongs on the payslip.
Which receipts to collect before authorizing payment
Every reimbursement should rest on a valid receipt, ideally issued in the building's name or otherwise clearly linked to the authorized purchase: a fiscal receipt, a receipt, or an invoice. The manager should set a threshold below which the concierge can purchase consumables independently, provided the receipt is kept, and a prior authorization procedure for larger amounts or non routine work.
Good practices to adopt:
- A reimbursement request form with date, reason, amount, and the receipt or invoice attached
- A maximum threshold for independent purchases without prior authorization
- Written prior authorization, even a simple email, for purchases above the threshold or for unplanned work
- Keeping receipts on file with the building's accounting records, for the owners' meeting and any future review
Payment traceability and bookkeeping
The reimbursement should be paid through a traceable method, a bank transfer to the concierge's account or from the building's dedicated account, leaving a bank record matched to the supporting receipt. Cash payments, besides being inadvisable for anything but negligible amounts, make verification harder both at the annual statement and in the event of a review.
In the books, the reimbursement should be recorded as an ordinary management expense, supplies or minor maintenance, kept separate from the wages and contributions line for the concierge. This separation lets the manager present a readable financial statement at the owners' meeting, where labor cost and out of pocket expenses are immediately distinguishable, in line with transparency requirements for condominium financial reporting.
Allocating the expense among the owners
Once recorded, the reimbursement follows the same allocation criteria used for ordinary expenses tied to the concierge service: normally the general ownership share table, unless the building bylaws set a different criterion, for example stairwell cleaning costs split partly by usage, upper versus lower floors. If the reimbursement covers work that benefits only part of the building, such as one stairwell or a specific courtyard, it should be allocated using the same criterion applied to that expense category in the ordinary budget, not spread generically across the whole building.
Frequently asked questions
Does a concierge expense reimbursement count as taxable income?
No, if it genuinely returns a documented out of pocket expense the concierge incurred on the building's behalf: in that case it is not employment income and does not enter the taxable or contributory base. If instead the amount effectively compensates additional work, it must be treated as wages under the national collective agreement for building employees and included on the payslip, with the corresponding contributions.
Is prior authorization from the manager always required?
For small recurring purchases, such as cleaning supplies or waste sorting bags, an agreed threshold is enough, letting the concierge proceed independently while keeping the receipt. For larger amounts or non routine work, written prior authorization, even a simple email, is advisable, so there is a record of the decision that can be explained at the owners' meeting or to any owner who asks.
How does a reimbursement differ from wages on the payslip?
Wages follow the pay scales and increments set by the national collective agreement for building employees and are paid through a monthly payslip that includes contributions. A reimbursement, by contrast, does not go through the payslip: it is a separate expense line in the building's financial statement, paid against a receipt or invoice, with no social security withholding because it is not compensation for work performed.
What happens if there is no receipt for the expense?
Without a supporting document the reimbursement cannot be verified, and the manager risks having to justify it at the owners' meeting without proof, exposing the building to challenges over the regularity of its administration. As a rule, no reimbursement should be paid without a receipt or invoice, and that document should match the concierge's request in date and amount.
Can property management software help keep these items separate?
Yes: tools such as AmministraPro let you record concierge expense reimbursements as a line distinct from wages, attach digitized receipts to each transaction, and produce a financial statement that clearly separates labor cost from management expenses, making both auditor review and the owners' meeting easier.
Try AmministraPro
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