Travel & Expense Reimbursement Policy

This policy establishes the rules for pre-approval, booking, allowable expenses, per diem, mileage, documentation, and reimbursement of business travel expenses. The policy is intended to operate as an IRS accountable plan so eligible reimbursements are not treated as taxable wages when employees provide timely substantiation and return any excess advances within the required timeframe.

This policy applies to all employees, managers, contractors if expressly authorized in writing, and any other individuals who incur expenses on behalf of the company. It applies to domestic and international business travel, local mileage, client visits, conferences, training, and other approved business-related expenses. California employees: reimbursement obligations must also be administered consistently with California Labor Code Section 2802. Non-exempt employees: travel time and expense handling must not violate FLSA overtime requirements.

Key terms used in this policy are defined in the Definitions section above. Additional terms:

• Pre-approval: Written approval from the employee’s manager or designated approver before travel is booked or expenses are incurred, except in emergencies.
• Reasonable and necessary: An expense that is ordinary, appropriate, and directly related to company business.
• Documented warning: A written notice issued when an employee repeatedly fails to follow expense rules, submit receipts, or meet deadlines.

1. Pre-approval required: Employees must obtain written approval before booking travel or incurring reimbursable expenses, except for minor local expenses under company limits or emergency travel approved after the fact.
2. Allowable expenses: Reimbursable expenses must be reasonable, necessary, and directly related to company business. Examples may include airfare, train fare, hotel, ground transportation, parking, tolls, business meals, conference fees, internet access while traveling, and mileage for approved personal vehicle use.
3. Non-reimbursable expenses: Personal expenses are not reimbursable, including entertainment, alcohol unless expressly permitted for a business meal, spouse or guest travel, fines, traffic tickets, personal upgrades, and expenses without a valid business purpose.
4. Per diem: The company may use per diem rates for meals and incidental expenses, and in some cases lodging, based on the approved destination and travel dates. Per diem rates may not exceed the company-approved limit or applicable IRS guidance.
5. Mileage: Personal vehicle mileage for approved business travel is reimbursed at the company mileage rate in effect on the date of travel. Commuting between home and the regular work location is not reimbursable unless required by law or specifically approved.
6. Advances: Travel advances, if provided, must be used only for business expenses and any unused amount must be returned promptly. Employees must substantiate all advanced amounts within the required timeframe.
7. Receipts and substantiation: Itemized receipts are required for all expenses above the company threshold and for any expense where a receipt is needed to support IRS accountable plan treatment. Employees must include the business purpose, date, location, attendees if applicable, and cost center or project code.
8. Submission deadline: Expense reports must be submitted within 60 days after the expense is incurred or the travel ends, whichever is later, unless a shorter deadline is required by the company or applicable law.
9. Reimbursement timeline: Approved expense reports will be reimbursed through payroll or accounts payable as soon as reasonably practicable, typically within one pay cycle or 30 days after approval, subject to processing cutoffs and applicable law.
10. Currency and exchange rates: International expenses must be submitted in the original currency and converted using the exchange rate documented by the card issuer, receipt, or approved company method.

1. Request approval: Submit a travel request that includes destination, dates, business purpose, estimated costs, and any anticipated lodging or airfare.
2. Book travel: After approval, book travel using preferred vendors or approved booking channels when available.
3. Collect documentation: Keep itemized receipts, conference agendas, mileage logs, and any other supporting documents during travel.
4. Submit expense report: Complete the expense report promptly after travel ends and attach all required documentation.
5. Manager review: The manager or designated approver reviews the report for business purpose, policy compliance, and budget availability.
6. Finance audit: Finance may request clarification, reject unsupported items, or adjust reimbursements to comply with policy and tax rules.
7. Payment: Once approved, reimbursement is issued through the normal payroll or AP process.
8. Corrections: If an expense is denied or underpaid, the employee may resubmit corrected documentation or request review through Finance within a reasonable timeframe.

Employees must obtain pre-approval, spend company funds responsibly, retain receipts, submit accurate and timely expense reports, and return excess advances.

Managers must review requests and expense reports in good faith, confirm business purpose, and approve only reasonable and necessary expenses.

Finance / Accounts Payable must administer reimbursement processing, audit submissions, maintain records, and ensure alignment with IRS accountable plan requirements.

Payroll must process any reimbursements paid through payroll and ensure taxable items, if any, are handled appropriately.

HR must support policy communication, training, and disciplinary escalation for repeated noncompliance.

Failure to follow this policy may result in delayed reimbursement, partial reimbursement, denial of reimbursement, repayment of advances, retraining, a documented warning, placement on a PIP where appropriate, or other corrective action up to and including termination of employment. Repeated late submissions, unsupported expenses, falsified receipts, or misuse of company funds may be treated as misconduct. The company will apply this policy consistently and will not retaliate against employees for making good-faith questions or complaints about reimbursement practices.

Exceptions must be approved in writing by Finance or another designated policy holder before the expense is incurred whenever practicable. Emergency exceptions may be approved after the fact if the employee documents the circumstances and the business necessity. California employees: any noncompliant reimbursement handling must be reviewed promptly to avoid violating Labor Code Section 2802. Any exception must still preserve IRS accountable plan substantiation requirements unless a lawful taxable treatment is required.

This policy will be reviewed at least annually and updated as needed to reflect changes in IRS accountable plan guidance, per diem rates, mileage rates, payroll practices, and applicable federal or state law. Revisions must be approved by Finance, HR, and legal counsel or the designated policy holder before publication.