Allowing employees to maintain separate bank account for expense reimbursement

[rohanpatil]

Hello to the expert peers in the community,

I seek your guidance on the topic of employees wanting to have separate bank accounts for Payroll and T&E respectively.

Can you please share some use cases for allowing employees to have more than one bank account? Is it correct to assume that this is merely for convenience sake rather than a legislative requirement in any country.

Hopefully someone can help me understand the topic a little better.

[abhijit]

Hi Rohan,

There is no legislative requirement as such.

An employee can get the amount in different bank accounts if the company agrees to the same.

[rohanpatil]

Hi Abhijeet, Thank you for the input. Are you aware of use cases where companies should/ do allow employees to maintain separate bank accounts? Perhaps for income tax related justifications and such. I am really interested in getting more inputs in this context.

[Munari_alEXPert]

dear @rohanpatil 

there are not legal requirements as far as I am aware. It depends also how the payment set up is done within your Concur system, but I had a few cases in the past of employees asking the same question as yours.

Generally, it is always easier to say "no" as organization tends to keep standard a process, however, on the two cases I just mentioned, there were undestandable reasons for accomodating the employees and paid their expenses to 2 differents accounts. We didn't have ConcurPay in that case, and doing manual transfer with an automatic download from SAE Concur file.

I wonder if is still possible with Concur Pay, as each employee is set up in SAP as a "Vendor" which is used also by Payroll for making salary payments. 

I am going to include someone from SAP Concur...

 @KevinD

would you have a confirmation on all Payment set up scenarios? Thank you.

[rohanpatil]

Thank you for the input @Munari_alEXPert 

We do not have Concur Pay. We interface the approved expense reports to SAP and pay from there. The bank account for payment comes from payroll system. I am trying to understand, if there is a use case whereby, I need the payroll system to offer an option for employee to maintain T&E bank account information.

Best regards,

Rohan

[rohanpatil]

.

[KevinD]

@rohanpatil In 12 years at Concur, I've never come across someone wanting two bank accounts. I doubt there are any legislative requirements, so it would be up to the employee to decide if they need two bank accounts. 

I could possibly see someone wanting their paycheck to go into a checking account and possibly their T&E reimbursements to go into a Savings account, but I haven't ever come across this. The employee can enter whatever bank account information they want into their Concur profile, if their company is using Expense Pay. 

[rohanpatil]

Thank you @KevinD 

I have now presented the challenge to our internal teams to come up with a use case. For now, there seems to be a need to have the discussion with unions in some European countries but no use case yet. I will continue to monitor this thread to see if any other customer happens to share their particular use case.

[Nancyagfa]

There are some reasons to have separate bank accounts for reimbursement and payroll - keeping the amount separate to pay corp card from family money is one.  We use Concur Pay so it is separate from Payroll and is very easy to accommodate.  This has also come into play when divorce requires assets to be split, and there is an easy way to show this was not salary but reimbursement.  

[abhijit]

Hi Rohan,

In India, companies generally offer two cards: savings a/c and ERA account.

Employee reimbursement a/c is anyways linked with the saving a/c.

ERA a/c have few benefits :

1.Separate reimbursement tracking

2.Interest on daily balance quarterly.

From the company side, I don't think apart from standardization any other issue to reject employee's request. 

[rohanpatil]

Thank you @abhijit 

Your response corresponds to the other responses so far. There seems to be no use case for allowing two accounts. I will continue to monitor this question just in case someone happens to know a specific scenario where this is needed.

[Rodrigo_da123]

Ola Rohan,

Creio que seria mais Facil os funcionarios fazerem a portabilidade. e deixarem cadastradas no sistema concur a conta sem a portabilidade.

Ou o proprio funcionario deixe a cota desejada aqui e programe em seu banco uma transferencia automatica todo mes.

Falo isso porque seria muito dificil a empresa monitorar esses pagamentos em duas contas, sujeito ate a uma auditoria interna.  Nao que esteja errado mais sempre a havera buraco para ser tampado entende. esse mes foi em uma conta no proximo foi em outra.

[rohanpatil]

Obrigado @Rodrigo_da123 . Agradeço os vossos contributos.