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Travel Expense Reimbursement
Going on a business trip may sound fancy, but the fun only lasts so long until you’re faced with the reimbursement of travel expenses. It doesn’t have to cause a headache, though.
With Expensify Travel, the travel expense reimbursement process is simplified and enhanced. It’s available for free for those who have an Expensify plan. And if you have the Expensify Visa® Commercial Card, our travel management system helps you seamlessly track all your business travel expenses.
In this guide, we’ll walk you through everything you need to know so you can focus on your business trip instead of submitting and collecting receipts.
Travel expense reimbursement is the compensation process for employees who incur out-of-pocket expenses during business travel. Now, what are travel expenses? They include accommodation, transportation, meals, and other miscellaneous expenses related to business travel.
In the corporate world, reimbursing travel expenses promotes fairness, talent retention, and accurate financial reporting. Essentially, it recognizes that employee travel expenses should be reimbursed timely.
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Expensify seamlessly simplifies the travel reimbursement process and expense management on the go. Employees can quickly request reimbursement, and employers can easily review and reimburse these expenses.
The following features make business travel expenses reimbursement as easy as 1, 2, 3:
With Expensify’s receipt scanning app, the analog way of receipt tracking is a thing of the past. Say goodbye to hanging on to those annoying little pieces of paper, which take up too much wallet space, and streamline the travel expense reimbursement process by simply taking a picture with your phone. Snap a photo of a receipt, submit your expense report when you’re back, and get paid stat!
If you’re using your car or renting a ride for your business trip, mileage tracking is another crucial thing to track. Rather than trying to track things in your phone’s note app or penciling in some miles on your dollar store notepad, just use Expensify to record mileage while traveling. Plus, Expensify stays up-to-date with the IRS mileage rate, so you don’t have to.
Want to ensure you’re never surprised by your employees’ final travel expense reimbursement request? With the Expensify Card, you can set Smart Limits. These limits let you set a cap for expenses beforehand, allowing the cardholder to spend up to the amount you’ve set before you approve them for more.
Reconcile accounts without breaking a sweat by using the Expensify Corporate Card. With each swipe of a corporate card, a transaction is imported into Expensify, letting your top salesperson focus on closing the deal while having dinner with a client instead of worrying about getting a copy of the receipt. If your company is already using a corporate card they love, no worries - our credit card import feature works with several other bank cards.
When you return to the office after a business trip, filling out a travel expense reimbursement form is probably your last priority. But it’s necessary to get paid. Some companies have their internal process and forms for this, while others don’t have a standard.
If your company doesn’t have a template for travel expense reimbursement, a quick Google search will yield plenty of options to help you get reimbursed ASAP. But why not make things easy on yourself?
Expensify is the ultimate travel expense reimbursement software. It allows employees to submit expense reports in a snap to their admin and enables admins to take them from there based on the company’s processes.
Clear travel expense reimbursement guidelines for all company staff are essential. Employees should be appropriately compensated for their business-related travel expenses.
Good guidelines typically outline the steps employees must follow to claim the categories of expenses eligible for reimbursement. When these guidelines are easy to understand and transparent, it is easier for managers to enforce them, ensuring all necessary documents are submitted and the proper steps have been taken.
Of course, having travel expense reimbursement software like Expensify takes the guesswork out of company policies for business-related travel expenses, ensuring happy team members from sales to accounting and beyond.
The IRS (Internal Revenue Service) has specific rules regarding employee travel reimbursement. Employers can offer employees travel reimbursement for business-related expenses, such as transportation, lodging, meals, and other incidental costs incurred while on travel for work purposes.
Note that expenses must be considered ordinary and necessary for the employee's job. If the reimbursement meets the requirements specified by the IRS, it is generally tax-free for the employee. Cha-ching! It’s recommended that employees maintain records such as receipts, invoices, and travel itineraries to be reimbursed.
Whether you’re an employee or an employer, review the specific rules and guidelines the IRS provides to stay compliant.
It’s pretty simple to request to be reimbursed for your business travel expenses. Follow these steps to make sure you get your money back:
And if you have an Expensify plan or the Expensify Corporate Card, you can skip the paperwork and let the app do all the work for you.
Regarding travel reimbursement policies, every company has its budget for business travel allowances for the year. So, check out your company or organization’s policies to understand what’s allowed and what's not.
Most companies follow standards set by the IRS, but it’s always good to read up on the rules yourself to stay on top of things. Remember to keep track of any documentation from your business trip and track your mileage if you're responsible for driving during your trip.
As with almost anything, a company can refuse to reimburse travel expenses. This is usually because of an organization’s policies or guidelines. For example, if your expenses fall outside of specified limits, you don’t have the proper documentation, or a company policy has been violated, your request may be rejected.
Generally speaking, travel expense reimbursement is not considered income for individuals. This protects employees from having an extra tax burden for doing their job. Of course, ensure you have followed the proper steps to request reimbursement and keep copies for yourself, just in case.
Travel expense reimbursement is the last thing you want to deal with after a business trip. So, reduce the extra work and use Expensify to track your expenses correctly.
From helping you keep track of mileage, scanning receipts, or setting spending limits, Expensify is here to make reimbursing travel expenses a breeze so you can focus on more critical business matters.
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