Travel Reimbursement Policy
Travel reimbursement policies have been adopted by companies and organizations across the globe for the benefit of employees who travel for business. When employees embark on a business trip, any out-of-pocket expenses that are directly related to business or the purpose of the trip are paid back to the employees by the company or employer. This is done after the employees returns to the office.
It is important to understand what a travel reimbursement policy typically covers, and how employees can get reimbursed for their business travel-related expenses.
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Expense Reports
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Most businesses will ask the traveling employees to complete an expense report once they return to the office. The expense report is an itemized list of all expenses, and the dollar amount of each purchase. Since this will be used to determine the reimbursement, all business-related purchases should be included in this report.
Purchases made on a company credit card are generally omitted from the expense report and handled separately, since they are charged to the company's account.
In order to ensure reimbursement for travel expenses, employees should file the expense report as soon as possible after returning to the office. Most companies have an expiration date on reimbursements, and will not compensate employees for business travel after a specific date. It is best to file the report and submit all receipts as quickly as possible.
Save Receipts
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Employees should save all receipts when traveling. Companies require proof of purchases, especially those in high amounts. All receipts should be submitted along with an expense report to ensure maximum compensation. For purchases where a tip was given, indicate on the receipt the amount of the tip, and add that to the total amount of the purchase. Receipts should be kept even for small purchases.
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What is Eligible for Reimbursement
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Typically, expenses incurred by the employees while traveling that directly relate to business are reimbursed. This often includes hotel stays on overnight trips, transportation to the destination, including flights, train tickets, rental cars, and airport shuttles, transportation at the destination, such as taxis, subways and towncars, meals and car mileage, if applicable. If employees are attending a conference or seminar, the registration cost of the conference should also be covered by the company. Dinners with clients are often typically reimbursed if they are not charged to the company credit card at the end of the meal.
Reimbursement differs by company and industry, so employees should consult the human resources department at their company to know exactly which of their purchases are eligible for reimbursement.
What Not to Expense
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Anything not directly related to the job or the reason for traveling should not be included on an expense report. Most companies will only cover business-related purchases. Employees should not expect to receive compensation for any personal purchases or entertainment during their trip. Only purchases made that are directly related to their business or purpose of trip will be reimbursed.
Reimbursement Checks
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Most companies will deliver reimbursement in the form of a check. Checks are typically delivered to the employees at the office, although they can be mailed home as well.
Employees should check the employee handbook or ask their human resources office how long it typically takes to process reimbursements. If employees do not receive their check within the specified amount of time, they should contact their supervisor or human resources. They will investigate and see that the check is processed.
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References
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