Social Security and mileage: what freelancers need to know
Understand how mileage reimbursement affects your Social Security contributions if you work as freelancer.
## Social Security and Mileage: What Freelancers Need to Know
Freelancers frequently have doubts about how mileage reimbursement affects Social Security contributions. Let's clarify.
## Mileage Reimbursement Is Not Remuneration
Mileage reimbursement is NOT considered remuneration for Social Security purposes. You don't pay contribution on these amounts, as they are only reimbursement of expenses already incurred.
But careful: if you issue service invoice including travel amount as part of the service (not as separate reimbursement), that amount DOES enter the Social Security calculation base.
## How to Document Correctly to Avoid Excess Contributions
The difference is in how you document: mileage reimbursement must come separate from service invoice, with specific receipt showing origin, destination, distance and per-km rate. Use Quilometragem to generate these receipts properly.
For freelancers who pay Social Security on invoice, always consider separating travel reimbursements from the service amount itself. This legally reduces your contribution base.
## Practical Example and Record-Keeping
Practical example: you provide R$ 2,000 consulting and drive 200km at R$ 1.50/km = R$ 300. Issue invoice for R$ 2,000 + mileage receipt for R$ 300. Social Security applies only on R$ 2,000, not on R$ 2,300.
Document everything meticulously. In case of audit, you need to prove that reimbursement amounts correspond to actual work-related travel expenses.