Reimbursement Policy Template

Reimbursement Policy

Purpose of Reimbursement Policy

This Reimbursement Policy explains [Company Name] approach to reimbursing employees for authorised business expenses. The policy exists to ensure fair, consistent, and timely reimbursement, to protect company funds, and to provide clear guidance on eligible expenses, required documentation, and approval responsibilities.

Scope

This policy applies to all employees, contractors, and temporary staff who incur business-related expenses on behalf of [Company Name]. Exceptions must be approved in writing by the employee's manager and the Finance Department.

Eligible Expenses

Eligible expenses are reasonable and necessary costs incurred while conducting company business. Typical categories include:

• Business travel and transportation, including mileage when personal vehicles are used
• Meals and incidental expenses while traveling or meeting with clients
• Accommodation and lodging for business trips
• Client entertainment when pre-authorised and documented
• Supplies and materials directly related to a business activity

Expenses must be ordinary, reasonable, and supported by itemised receipts unless otherwise stated in this policy.

Submission and Documentation

Employees must submit expense claims using [Expense System] or the approved expense form. Each claim must include:

• Date and purpose of the expense
• Name of the employee incurring the expense
• Itemised receipts or proofs of payment for all amounts over the company threshold
• Business purpose and names of any attendees for meals or entertainment

Claims should be submitted within 30 calendar days of the expense date unless a different timeframe is authorised by the employee's manager.

Limits and Allowances

[Company Name] may set maximum limits or per diem rates for certain expense categories. Expenses that exceed published limits require prior written approval from the employee's manager and the Finance Department. Personal expenses are not eligible for reimbursement.

Approval Process

Expense claims follow the approval workflow below:

• Employee submits the claim with required documentation via [Expense System] or the approved form.
• The employee's manager reviews the claim for business purpose, completeness, and compliance. The manager should approve or reject within five business days.
• Approved claims are forwarded to the Finance Department for validation and payment processing. Finance will verify receipts, apply any limits, and process payment within ten business days of final approval.
• If a claim is rejected, the manager must provide the employee with the reason and instructions for correction or appeal.

Managers are responsible for ensuring expenses are business related and reasonable. HR supports managers and employees by clarifying policy application and addressing disputes. The Finance Department administers payments and maintains records.

Exceptions and Pre-Approval

Any non-routine or high-value expense must receive written pre-approval from the employee's manager and the Finance Department prior to commitment. Emergency expenses incurred without pre-approval may be considered for reimbursement on a case by case basis and require a written explanation and manager approval.

Reimbursement Timing and Payment Method

Reimbursements are normally paid by direct deposit or payroll adjustment, as permitted by company practice. Payment timing follows the Approval Process timelines. Where payroll timing prevents immediate reimbursement, Finance will schedule payment at the earliest practicable payroll cycle.

Recordkeeping and Audits

Employees must retain original receipts and supporting documentation for any expense claim. [Company Name] may require employees to retain records for a reasonable period and may perform periodic audits of expense claims. Employees must cooperate with audit requests and provide documentation promptly.

Non-Compliance

Failure to follow this Reimbursement Policy may result in denial of reimbursement, requirement to repay funds, and disciplinary action up to and including termination for serious or fraudulent conduct. Repeated or intentional non-compliance will be addressed through the company disciplinary process and may affect future reimbursement privileges.

Roles and Responsibilities

Employees are responsible for submitting accurate claims with full documentation. Managers are responsible for timely review and approval, ensuring expenses are appropriate. HR provides guidance on policy interpretation. The Finance Department processes payments and maintains records.

Note

This Reimbursement Policy may be updated periodically to reflect business needs and operational changes. Employees should consult HR or their manager for clarification on policy interpretation or to request exceptions.