9+ Employee Expense Reimbursement Policy Sample

Employee expense reimbursement policy sample is a computer software program used by a company in analyzing and improving its reimbursement policies. It assists companies in a way that gives them an idea about the expenses they are paying for. The expenses incurred by employees of the company are the ones that need to be taken care of immediately.

An example illustrates this process. You have a temporary employee whose work involves running errands and then getting paid for it. In such a scenario, the profit that you can make from this employee will not be large enough to support the rest of the expenses incurred by the same employee. Therefore, the company needs to put in place a different type of employee expense reimbursement policy to take care of the rest of the expenses.

However, you cannot simply plan and hope that the remaining expenses incurred by your employee would compensate for the entire expenses incurred by him. Hence, you need to consider other factors that can help you create a better reimbursement policy.

In the employee expense reimbursement policy sample, the program looks at the types of expenses that you are going to pay for. It assigns them a corresponding value that shows whether the expense is worth it or not. This is so because the value assigned to an expense varies depending on the contribution that an employee can make towards the company. Thus, the program helps the company to assess the contribution that an employee can make to the company and hence, allows it to figure out the extent of the costs that you should reimburse.

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It can also calculate additional costs that the company will incur when an employee gets sick. The example also helps in forecasting when the business would slow down. In this case, the program calculates how much extra money the company would lose from this.

This means that the employee expense reimbursement policy sample is very helpful to the company. However, it does not seem to give you a perfect solution. It is a piece of advice that you must follow. In other words, the program is also based on financial calculation.

Just like any other business, the business owner should also take care of the business. If the business fails, the business owner will be all the more responsible for the failures. In this sense, the example tells the business owner to take care of the business every single day. The result of this is the employee expense reimbursement policy sample.

Expense Reimbursement Plan Accountability Plan

Before the amendment, bulk reimbursements were not addressed in the IWPCA and its regulations. As a result, the administration analytic took the position that bulk reimbursements were not “wages” and appropriately were not covered by the IWPCA. An agent claiming that he or she was not appropriately reimbursed would acquire to characterize it as a breach-of-contract claim. Such an affirmation would not accommodate the abeyant accretion of asleep amercement and attorney’s fees, as are accessible beneath the IWPCA. That position is no best tenable.

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The adapted law (820 ILCS 115/9.5) requires the administration to balance all “necessary expenditures … incurred by the agent aural the employee’s ambit of application and anon accompanying to casework performed by the employer.” It defines “necessary expenditures” to beggarly “all reasonable expenditures … appropriate of the agent in the acquittal of applicable duties and that accustomed to the primary account of the employer.”

Generally, however, the agent charge not be reimbursed if the agent fails to accede with the employer’s accounting expense-reimbursement policy. The employer’s accounting expense-reimbursement action may not crave advisers to abide costs beneath than 30 canicule afterward incurring them, although it may acquiesce employees more than 30 canicule to abide by expenses. The employer charge balances all “necessary” costs that are submitted aural 30 canicule afterward they were incurred.

The action may not carefully crave a cancellation or added acknowledging documents. If an agent has absent or contrarily cannot aftermath a cancellation or added documentation, the employer charge acquires the employee’s own “signed statement” instead.

Also, while the employer’s action may set blueprint or guidelines for expenditures, and the employer may abjure agreement if these guidelines are exceeded, the action may not accommodate for “de minimis” reimbursement or no agreement at all.

Further, if the employer “authorized” or “required” an accurate bulk (those two agreements are amorphous in the amendment), it may not abjure reimbursement, alike if the blazon or bulk of the bulk contrarily would breach or beat the employer’s policy.

Other States

Illinois has abutting a cardinal of added states—including California, Massachusetts, Montana, Pennsylvania, New York, Iowa, and Washington, D.C.—in assuming expense-reimbursement approved or authoritative accouterment or acclamation bulk agreement obligations through bureau guidance.

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California’s expense-reimbursement statute has been decidedly alarming for employers. Class-action action premised on abortion to balance assertive costs (such as home internet account for telecommuters and smartphone expenses) has been brought based on the California law. In one case, a California Court of Appeal captivated the expense-reimbursement statute requires the administration to pay a reasonable allotment of employees’ claimed cellphone bills back such phones are used, in part, for business purposes. Cochran v. Schwan’s Home Serv., Inc., 228 Cal. App. 4th 1137 (Cal. Ct. App.), reviewed denied, 2014 Cal. LEXIS 10933 (Cal. 2014).

However, clashing the alteration to the IWPCA, the California law does not acquire an accouterment enabling administration to advance some ascendancy over the ambit of bulk reimbursements through the accomplishing of an accounting agreement policy.

Sample Employee Business Expense Reports Policy


Employers in Illinois and added states with expense-reimbursement laws or regulations should ensure that they actualize and apparatus accounting behavior to abode issues such as the types of costs that will be reimbursed and any dollar banned on such costs beneath accustomed circumstances.

Alison B. Crane and Neil H. Dishman are attorneys with Jackson Lewis in Chicago. © 2018 Jackson Lewis. All rights reserved. Reposted with permission.

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