Expense Reimbursement Policy - Template, Sample Form Pro · US-law

EXPENSE REIMBURSEMENT POLICY

Employer: ________

Effective Date: ________

This Expense Reimbursement Policy (the “Policy”) is adopted by ________, a ________ organized under the laws of the State of ________, with its principal place of business at ________ (the “Employer”). This Policy describes the guidelines that all employees of the Employer (“Employees,” or singularly an “Employee”) must follow when incurring expenses in a work-related capacity.

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This Policy is intended to comply with all applicable federal and state law, including, where applicable, the wage-payment and reimbursement requirements of the State of ________, and to qualify, where applicable, as an “accountable plan” under Section 62(c) of the Internal Revenue Code (26 U.S.C. § 62(c)) and Treasury Regulation § 1.62-2, so that qualifying reimbursements are excluded from the Employee’s taxable wages.

§ 1. Covered Expenses

1.1. The Employer will generally cover work-related expenses incurred by Employees. Work-related expenses are defined as expenses that are reasonable, necessary, and directly related to the Employee’s performance of services for the Employer.

1.2. Work-related expenses may either be paid directly by the Employer or paid initially by the Employee and subsequently reimbursed in accordance with this Policy.

1.3. Although work-related expenses may generally be covered, certain categories of expense may be subject to a cap or to a maximum approved amount of ________. Where a cap applies, the Employee should consult with their direct supervisor before incurring the expense.

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§ 2. Non-Covered Expenses

2.1. The following are considered categorically non-covered expenses, for which the Employee must bear the cost:

(a) Unauthorized or personal meetings or travel;

(b) Expenses related to the lapse or renewal of a professional license, except where the Employer has expressly agreed in writing to bear such cost;

(c) Expenses not related to the Employee’s work for the Employer;

(d) Unauthorized upgrades when traveling or renting equipment on behalf of the Employer;

(e) Fines, penalties, or citations related to speeding, parking, or other traffic or driving violations; and

(f) Any other expense not approved in accordance with this Policy.

2.2. The foregoing list is non-exhaustive. For any questions regarding covered or non-covered expenses, the Employee is advised to consult their direct supervisor before incurring the expense.

§ 3. Employee Responsibilities

3.1. Employees are responsible for ensuring that all expenses incurred are reasonable, necessary, and directly related to their work for the Employer.

3.2. Employees must obtain prior approval from their direct supervisor before incurring any work-related expense, except where prior approval is impracticable, in which case the Employee must seek approval promptly thereafter.

3.3. Employees must retain and submit accurate records and original itemized receipts for all expenses for which they seek reimbursement. Reimbursement requests must be submitted on the Employer’s designated form, together with all supporting documentation, within ________ following the date the expense was incurred. To satisfy the accountable-plan rules, Employees must substantiate the amount, time, place, and business purpose of each expense and return any advance or amount in excess of substantiated expenses within a reasonable period.

3.4. Employees are expected to exercise good judgment and to act in the best interests of the Employer when incurring any work-related expense.

3.5. Employees must not falsify, exaggerate, or misrepresent any expense submitted for reimbursement.

§ 4. Reimbursement Procedure and Timing

4.1. Properly substantiated and approved reimbursement requests will ordinarily be paid within ________ following submission, by the Employer’s standard method of payment.

4.2. The Employer reserves the right to request additional documentation and to decline reimbursement for any expense that does not comply with this Policy or applicable law.

§ 5. Disciplinary Action

5.1. Employees found to have falsified documents, exaggerated expenses, or otherwise violated this Policy will be subject to disciplinary action, up to and including termination of employment, and may be required to repay any improperly obtained amounts, in addition to any remedies available to the Employer at law or in equity.

§ 6. At-Will Employment; No Contract

6.1. Nothing in this Policy creates a contract of employment or alters the at-will nature of employment with the Employer, where applicable. Employment may be terminated by either the Employer or the Employee at any time, with or without cause or notice, subject to applicable law.

§ 7. Amendment and Modification

7.1. The Employer reserves the right to amend, modify, suspend, or discontinue this Policy, in whole or in part, at any time and in its sole discretion, subject to applicable law. Employees will be notified of any material changes.

§ 8. Governing Law and Severability

8.1. This Policy shall be governed by and construed in accordance with the laws of the State of ________ and applicable federal law, without regard to its conflict-of-laws principles.

8.2. If any provision of this Policy is held invalid or unenforceable, the remaining provisions shall continue in full force and effect, and the invalid provision shall be modified to the minimum extent necessary to make it valid and enforceable.

§ 9. Acknowledgment

By signing below, the Employee acknowledges that they have received, read, and understood this Expense Reimbursement Policy and agree to comply with its terms.

EMPLOYER:

Name: ________

Title: ________

Signature: ________

Date: ________

EMPLOYEE:

Name: ________

Signature: ________

Date: ________