Travel expense reimbursement with Expensify

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.

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:

• Gather all documentation related to your business travel (flights, accommodation, meals, transport, etc.)

• Complete a reimbursement form (if provided by your employer or organization) or write a travel expense reimbursement letter.

• Submit your documentation and form to the department that handles reimbursements.

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.

Short answer: Yes, they can.

Here’s the deal. Whether travel expenses get reimbursed depends on a company’s specific policy. If an expense goes over per diem limits, doesn’t have prior approval, or is missing required documentation, the company can legally say no to reimbursement. In the U.S., there’s no federal law that forces companies to cover travel expenses unless it’s spelled out in an employment contract or required by state law (like in California, where employers must reimburse necessary business expenses).

Bottom line: Always check your company’s travel and expense policy so you know exactly what’s covered before you book that flight or hotel.

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.