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How to Handle Your Business Travel Reimbursements Efficiently

Team Kissflow

Updated on 12 Feb 2024 • 4 min read

Travel reimbursement can sometimes be an overlooked   financial process   in an organization, perhaps because it used to be a particularly time-consuming task. But the truth is, if the process is done right, it can yield profitable time and resource efficiencies for both employees and the business as a whole.

Here’s how to make sure that the travel reimbursement process in your organization is offering you the best value, regarding time, ease, and money.

How does travel reimbursement work?

Travel reimbursement is the way employers pay their employees back for expenses they have incurred during business-related travel. Such expenses can range from airfare to mileage, event registration, parking, and meals. Depending on your travel policy, employees may need to pay for these first.

How to speed-up travel reimbursement process?

Digitally automating the travel reimbursement process has become an increasingly popular way for businesses to handle what was once a   manual process . Regardless of how the travel expense management process is done, it is important to both employees and the company alike.

Here are some simple tips to get your travel reimbursements faster:

• Make sure the workflow fits
• Keep it simple
• Stick to cloud

1. Make sure the workflow fits

Choosing an out-of-the-box travel reimbursement solution might seem like a good idea, but there may be significant differences in how you want to process reimbursements. Rather than buying a standalone solution, you should consider building your own workflow and form on a simple automation platform.

2. Keep it simple

Many automated solutions actually make the process more complex. More than automated, employees want easy, so don’t choose a solution that complicates things more.

3. Stick to the cloud

Cloud-based travel reimbursement handling is easier for organizations of all sizes. It allows users quick and easy access to the system, coupled with sophisticated data manipulation and analysis, thus, meeting the needs of all parties in the process.

Features to look for in a travel reimbursement system

Every business has unique requirements, but there are a few features that you cannot do without. Here are some essential features that every travel reimbursement system should have:

1. Travel expense policy management

The travel management tool should let you define custom expense policies and approval hierarchies for different kinds of T&E expenses. The system should display the company’s guidelines when employees report their expenses, so they don’t submit unqualified expenses.

2. Expense reporting

Employees report their business expenses to managers or the finance team when they come back from business trips. The travel reimbursement system should let them submit expenses as and when they happen with a mobile app so no expense is left unaccounted.

3. Multi-currency expenses

When employees undertake international travel, they spend in a foreign currency. They get reimbursed in the local currency once they are back. The travel reimbursement system should accommodate multiple currencies and conversion rates.

4. Data validation

Whenever employees submit their reimbursement claims, the system should validate the expenses and throw red flags if they don’t adhere to the spending guidelines. Auto-validation deters the employees from submitting personal expenses, resulting in significant cost savings.

5.   Expense approvals

If there are any expenses in the report that don’t comply with the organization’s policy, the system should notify the approver. This makes it easier for managers and the finance team to approve or reject a claim.

6. Integrated system

If the travel reimbursement software is connected with corporate credit cards, travel expenses can be automatically fetched. The system should also post journal entries to the accounting software and update the payroll software so employees can be reimbursed along with their regular paychecks.

Benefits of automating travel reimbursements

By automating the travel reimbursement process, you can experience these benefits:

• Faster, on-the-go processing
• Fewer errors or requests for more information
• Immediate insight into the state of every request
• Analytics on how long the process usually takes
• Clearer sharing of travel policies and approvals

Steps involved in manual travel reimbursement process

In the past, this reimbursement process was often laborious and time consuming for all involved.

Let’s have a look at the different steps of this manual process.

Requesting Reimbursement

Approving reimbursement, requesting payment, approving payment.

The employee would likely have to fill out a paper form by hand, completing full details of the type of travel reimbursement being sought, the reasons for it, and a total cost breakdown, along with attaching all the paper receipts in an envelope or stapled to the back of the form.

This form would then be handed to their line manager, along with all those receipts, for the line manager to authorize.

The authorized form would be sent to the finance team for payment.

The payment would be approved and wired by the finance team. Finally, the employee receives the payment.

Drawbacks of manual reimbursement process

Manual process in a travel expense tracker system is prone to a number of potential issues, one of the biggest being the fact that the reimbursement crossed a number of hands before its eventual payment to the employee.

Employees relied on their manager to approve the claim quickly. Subsequently, they were bound to strict payment and processing rules, which often caused delays and inevitable frustration.

The manual travel reimbursement process often resulted in errors, or a need to further clarifications between the three key parties within the process: the employee, the manager, and the finance team.

Travel reimbursement with Kissflow Finance & Ops Cloud

Kissflow Finance & Ops Cloud   offers organizations robust yet simple solutions to overcome obstacles in their travel reimbursement processes. It gives employees and managers the opportunity to make and authorize claims on the move, and its built-in system formulas mean that the number of fields that need to be manually completed is minimized, leading to quicker and more accurate processing.

The system offers substantial flexibility to add customizable features that suit the needs of the business.

For example,   workflows can be adjusted to add in supervisor approvals over an absolute monetary value or auto-approvals for lower amounts. It is also straightforward to add or change permissions to the app, to ensure that the system is customized to each user, adding to the simplicity and ease of the process even further.

With   Kissflow Finance & Ops Cloud , you can streamline all your key finance processes like travel reimbursement claims, travel approvals, and budget requests. Get improved control over finance approvals and see your efficiency soaring. Get your free demo today.

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What to know about travel expense reimbursement + templates.

The best way to establish an accurate reimbursement strategy for your employee and your company is to ensure that you have an expense reimbursement policy in place and that it is covered with all applicable employees during the onboarding process.

Caryl Ramsey

Published on

June 2nd, 2023

Shoeboxed is an expense & receipt tracking app that helps you get reimbursed quickly, maximize tax deductions, and reduce the hassle of doing accounting.

Employers and employees should understand the business’s guidelines for  T&E  or travel expense reimbursement policies so that neither runs into any issues over business-related expenses down the road.

The IRS is pretty flexible with employers when it comes to employee reimbursement for business travel expenses while away on a company trip.

Table of Contents

Does travel expense reimbursement qualify as a deductible travel expense?

What the IRS is not flexible about is whether or not the travel-related expenses incurred on the business trip qualify as a deductible travel expense.

Employers can deduct “ordinary and necessary expenses” of employees traveling away from their tax home.

According to the IRS, any reimbursement that does not qualify as a deductible travel expense is considered employee wages.

What are “accountable” and “non-accountable” plans?

There are two methods for reimbursing workers for expenses incurred when traveling for business. These are the “accountable plan” and the “non-accountable” plan.

An “accountable plan” is based on the Internal Revenue Service’s guidelines for reimbursing employees for the actual travel costs so that the reimbursable expenses incurred are not counted as income.

This means that the reimbursements are not subject to W-2 reporting or withholding taxes.

The expenses, however, must be business-related. To qualify for the “accountable plan,” expenses must be business-related, reported accurately, and excess reimbursements issued.

If the company’s reimbursement process doesn’t meet the guidelines under federal law for the “accountable plan,” then the expenses fall under the “non-accountable plan.”

If a reimbursed cost is non-accountable, then it is subject to being taxed as part of the employee’s compensation, therefore, it must be reported on the W-2 form and is subject to withholding.

What is travel expense reimbursement?

Travel expense reimbursement is when you pay employees back for business expenses incurred while traveling.

The expenses that are reimbursed are dependent upon the reimbursement policies determined by your business.

A travel reimbursement policy should be set up by your business that specifies the rules and procedures regarding reimbursement for travel-related expenses.

Many companies are using traditional expense management systems where staff can use a credit card and submit refunded trip expenses after the trip ends.

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What common types of travel expenses qualify for deductible expense reimbursement?

As an optional reimbursement provider, you have a choice on whether or not to  reimburse employees for travel expenses .

Regardless, a clear reimbursement policy should be established within the company.

Some of the most typical reimbursable expenses include the following:

Transportation costs between your home and the business destination

Transportation between airport/station and hotel

Transportation between the hotel and the work location

Sending company-related supplies from your regular work location to your travel work destination

Business use of a rental car or the actual expenses of operating your personal vehicle when traveling away from home on business such as mileage reimbursement

The cost of parking your rental car can vary significantly depending on factors such as location, duration, and demand. Urban areas and popular tourist destinations often have higher parking fees, while off-peak times or less crowded areas may offer more affordable options

Lodging and meal expenses

Dry cleaning and laundry

Business communication expenses

Business related tips

Parking fees and tolls

How do expense reports play a role in a business’s expense reimbursement policy?

To prevent fraud and to keep company records updated and accurate, companies should  use expense reports  as part of their expense reimbursement policy.

The expense report should be used by employees to report incidental expenses such as travel expenses, business meals, and small purchases of supplies or equipment for the office.

Employees fill out these expense reports, which require the information of a typical transaction.

Some of the information found on an expense report include the vendor’s name, date paid, expense description, amount paid, and totals for each expense category .

Then the expense report is submitted to the company and according to the reimbursement policy, the employee is reimbursed.

See also: Expense Report Template Google Sheets: 4 Free Templates

Receipt requirements

It’s important to always have proof or documentation of the expenses that you incurred. The best proof is to provide the original receipt from the store, merchant, or a  receipt book .

Therefore, when turning in an expense report, always attach any  supporting documentation such as your receipts  to the expense report.

This safeguards the company against  expense fraud  and ensures that the company will have the documentation needed for tax deductions and any  audits  if requested.

Processing expense reports for travel reimbursements

Once expense reports are submitted to the company, the company is responsible for the accuracy of the expense reports.

The company has an obligation to check the expense report against its business travel and reimbursement policies.

This is meant as an assurance system for ensuring accurate compliance with corporate policies.

Deadlines for expense reimbursement

Businesses should establish monthly or quarterly deadlines for expense reports. This ensures that the business can claim the expense as a tax deduction.

It also ensures that records are kept more accurate and up-to-date, that an expense doesn’t fall through the cracks, and that the company maintains a more efficient cash flow.

Not only should there be a deadline for the employee to submit an expense report, but there also should be a deadline for when the employee will be reimbursed by the company.

See also: Travel Nurse Expenses: Put Money Back in Your Pocket

4 Free travel expense reimbursement form templates

Whether you’re a new business looking for an easy way to keep up with eligible travel reimbursements or an employee that often travels for work, these free travel expense reimbursement form templates are a great way to record travel expenses and separate them from non travel reimbursements.

1. Hloom free travel expense reimbursement spreadsheet

Hloom free travel expense reimbursement spreadsheet for Excel.

Hloom offers a  free travel expense reimbursement spreadsheet  that you can use to report any travel expenses made while away on a business trip.

Employees’ travel expenses should be recorded in a concise, organized template so it’s easy to categorize eligible reimbursement claims, see if expenditures were within spending limits, and receive reimbursement all by looking at a single form.

Use this template to record:

The date, time, and location you traveled to

The meals you ate

The cost of lodging

Cost of transportation

Private vehicle license

This template is 100% free and customizable, so you can adjust the columns as needed to suit your company.

2. GeneralBlue simple free travel expense reimbursement form

This  free travel expense reimbursement form by GeneralBlue  is as easy as it gets. It’s an Excel template with 8 columns for recording the expenses incurred traveling for business.

With this straightforward form, you can record:

The date you traveled

A description of your trip

The cost of transportation

The cost of hotels

The cost of meals

Miscellaneous expenses

The total amount of travel expenses

There is also a line for employee and approval signatures so you have an official record of travel expenses and reimbursements.

3. U.S. General Services Administration travel expense reimbursement template

Travel expense reimbursement template from the U.S. General Services Administration.

For state employees, the U.S. GSA offers a  free travel expense reimbursement template  that you can use to record spending while out on state business.

This template has everything an employee would need to record official business expenses, including:

Department or establishment

Official business categories

Mileage, including fare or toll

Date traveled

Additional persons

Tips and miscellaneous expenses

Spaces for authorizing signatures

The U.S. GSA travel expense template has to be printed and written as a paper copy.

4. Vertex42 travel expense reimbursement sheet

The  Vertex42 travel expense reimbursement sheet  is available for free and can be downloaded as an Excel file or Google Sheet .

This expense report includes:

Description of travel

Air and transportation costs

Fuel and mileage costs

Conferences and seminars

Meals and tip costs

Entertainment

Other expenses

The total cost of expenses

There’s also a place for authorized signatures, department, manager name, employee ID, and more.

Bonus: Shoeboxed for receipt tracking and expense reports

Use Shoeboxed to capture your receipts and create detailed expense reports for reimbursement.

If you don’t want to deal with the hassle of keeping up with your receipts, manually inputting the expenses into a spreadsheet, or printing out an expense report for your boss,  Shoeboxed  can help!

Tracking receipts with Shoeboxed

Shoeboxed  is a great  travel management software  that allows you to snap photos of your receipts, digitally extract the important information, and categorize the expenses so that they’re easy to find and manage in your Shoeboxed account.

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Use Shoeboxed’s Magic Envelope to ship off your receipts and get them back as scanned data in a private, secure cloud-based account. 📁 30-day full money-back guarantee!

Creating expense reports for business travel expenses

Once your receipt details are uploaded to your  Shoeboxed account , you can select the receipts you want to put in your expense report and either export, print, or email them to the appropriate authority.

Shoeboxed will then create a detailed and organized  expense report  with images of your receipts attached so you can get reimbursed!

And if you didn’t think it could get any better, Shoeboxed also offers a  free mileage tracker  so you can effortlessly calculate business mileage and add it to your expense report.

Frequently asked questions

Can i get reimbursed for travel expenses.

The IRS offers two plans for reimbursing workers for travel expenses that are deductible: 1. Employers don’t have to pay employment tax by not including the reimbursement for travel-related expenses from the worker’s wages with the accountable plan; or 2. Employers will have to count all payments to workers as wages under a non-accountable plan.

What are travel reimbursements?

Travel compensation consists of reimbursements for out-of-pocket expenses by employees when they travel for work. The employee typically fills out an expense report and turns it in to the employer. Your employee’s costs will be affected according to your company and reimbursement policies. Travel insurance policies provide you with guidelines for reimbursement of travel expenses.

How much travel expense can I claim?

During business travel the actual cost of transport is 100% deducted—whether it is a flight ticket, train ticket, or bus ticket. Similarly, renting a motor vehicle can make your travel expenses deductible.

In conclusion

The best way to establish an accurate reimbursement strategy for your employee and your company is to ensure that you have an expense reimbursement policy in place and that it is covered by all applicable employees during the onboarding process.

Providing an expense report template makes it much easier for the employees and for those processing the expense reports.

The expense reports will also help to maximize tax deductions, make the audit process much smoother, and ensure that the employee is being reimbursed the correct amount.

Caryl Ramsey  has years of experience assisting in different aspects of bookkeeping, taxes, and customer service. She uses a variety of accounting software for setting up client information, reconciling accounts, coding expenses, running financial reports, and preparing tax returns. She is also experienced in setting up corporations with the State Corporation Commission and the IRS.

About Shoeboxed!

Shoeboxed  is a receipt scanning service with  receipt software  that supports multiple methods for receipt capture: send, scan, upload, forward, and more!

You can stuff your receipts into one of our Magic Envelopes (prepaid postage within the US). Use our receipt app ( iPhone ,  iPad  and  Android ) to snap a picture while on the go. Auto-import receipts from Gmail. Or forward a receipt to your designated Shoeboxed email address.

Turn your receipts into data and deductibles with our expense reports that include IRS-accepted receipt images.

Join over 1 million businesses scanning & organizing receipts, creating expense reports and more—with Shoeboxed.

Try  Shoeboxed  today!

Turn business receipts into data & deductibles

Join over 1 million businesses scanning receipts, creating expense reports, and reclaiming multiple hours every week—with Shoeboxed.

The ABCs of Travel Expense Reimbursement: A Beginner’s Handbook

Traveling for work can be an exciting adventure, but it often comes with a myriad of expenses. Fortunately, many employers offer travel expense reimbursement to ease the financial burden on their employees. In this beginner’s handbook, we’ll explore the world of travel expense reimbursement , understanding its intricacies, and learn about Zaggle EMS which can make the process much smoother.

Understanding Travel Expense Reimbursement

Travel Expense Reimbursement is a process where an employer reimburses an employee for expenses incurred during a business trip. These expenses can include transportation, accommodation, meals, and miscellaneous costs. Employees need to understand what is eligible for reimbursement and how to track and document these expenses properly.

Common Travel Expenses

Let’s break down the common travel expenses into four categories:

A. Transportation Expenses: Transportation expenses can include airfare, train tickets, car rentals, and even parking fees. For instance, a flight from Hyderabad to Mumbai or a taxi ride to the conference venue can fall under this category.

B. Accommodation Expenses: Accommodation expenses cover the costs of staying in hotels, Airbnb rentals, or other lodging options. Whether it’s a five-star hotel in Delhi or a cozy guest house in the city, these expenses are eligible for reimbursement.

C. Meals and Dining Expenses: This category covers the cost of food and dining while on a business trip. It includes breakfast, lunch, dinner, and even snacks. Whether you’re dining at a fancy restaurant or grabbing a quick sandwich on the go, these expenses add up.

D. Miscellaneous Expenses: Miscellaneous expenses can be a bit tricky, as they encompass a wide range of costs, from conference fees and dry cleaning to business calls and internet charges. It’s essential to keep track of these smaller expenses, as they can significantly impact your reimbursement.

Expense Tracking and Documentation

One of the main challenges in the travel expense reimbursement process is proper tracking and documentation. Keeping receipts and organizing expenses can be cumbersome, and paper records are prone to loss or damage.

One of the primary difficulties lies in the proper tracking and documentation of expenses . Keeping physical receipts and records can be cumbersome, leading to potential errors, lost paperwork, or delays in reimbursement. Efficient expense tracking and reporting are key to overcoming these challenges and ensuring a smooth reimbursement process.

This is where digital tools like Zaggle EMS play a crucial role, making the process more efficient and less error-prone.

A. Submitting Expense Reports

With Zaggle EMS, employees can submit expense reports conveniently, reducing paperwork and the risk of errors. Smart Scan, a feature within Zaggle EMS, allows you to create expenses by scanning receipts using OCR (Optical Character Recognition) technology. It’s available through the Zaggle mobile application. You can even attach up to three receipts per expense, making sure you have all the necessary documentation.

B. Reimbursement Process

Zaggle EMS streamlines the reimbursement process by providing a clear and structured platform for both employees and employers. It categorizes expenses, making it easier for organizations to understand where their money is going.

C. Approval Process

The approval process is a crucial step in the travel expense reimbursement journey, ensuring that expenses are legitimate and comply with company policies

Zaggle EMS allows you to establish a hierarchical or multi-stage approval flow to ensure expenses are reviewed by the right people in the organization. In Zaggle EMS, you can configure up to 5 levels of approval in your workflow. This flexibility accommodates the unique approval structures within various organizations, from small businesses to large enterprises.

The approval process is critical to maintaining financial responsibility within an organization and adhering to established policies. By configuring hierarchical approval flows, organizations can ensure that expense reports undergo the necessary scrutiny. Moreover, the flexibility in the number of approval levels and the ability to resubmit and approve rejected reports streamline the process, making travel expense reimbursement a transparent and accountable process for both employees and employers.

Tips for a Smooth Reimbursement Process

1. Stay Organized: Keep all your receipts in one place. Using digital tools like Zaggle EMS can help you store and organize them efficiently.

2. Submit Promptly: Don’t procrastinate in submitting your expense reports. The sooner you do, the quicker you’ll get reimbursed.

3. Know Your Company’s Policy : Familiarize yourself with your company’s reimbursement policy. Some expenses may have specific limits or requirements.

4. Double-check: Before submitting an expense report, double-check all the information. Accuracy is crucial to avoid any delays.

Travel expense reimbursement doesn’t have to be a daunting process. With the right knowledge and tools, such as Zaggle EMS , you can simplify the task of tracking, documenting, and reporting your expenses. By understanding the ABCs of travel expense reimbursement , you can make your business trips financially stress-free and focus on the work at hand. Remember, the key to a smooth reimbursement process is organization and the use of efficient digital tools. Safe travels!

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Tax Resources for Accountants and Small Businesses (U.S.)

• Expense Reimbursements / IRS / Meals and Incidental Expenses / Mileage / Payroll / Per Diem Rates / Small business
• Complete Guide to Reimbursing Employees for Travel Expenses

Published September 2, 2020 · Updated April 21, 2021

When an employee travels away from the office and incurs expenses, the company should reimburse them. Whether travelling across the world or just driving their car to a client’s location, getting the reimbursement right isn’t hard.

Keep reading to learn how to make proper employee reimbursements.

Accountable Plans

You’ll first need to decide if you will implement an accountable or nonaccountable plan. This is just as it sounds; either you’ll have employees be accountable for business expense reimbursements or not.

All businesses should have an expense reimbursement plan in writing. This includes corporations, sole proprietors, the self-employed, and non-profits. Non-profits should be extremely careful when reimbursing disqualified persons because nonaccountable plan reimbursements not properly approved or recorded can cause significant tax exposure to the charitable organization.

An accountable plan must follow the IRS guidelines for expense reimbursement. To qualify, the following rules must be met:

• Expenses must be for business purposes.
• Expenses must be adequately reported to the company in reasonable time.
• Any excess reimbursement or allowance must be returned in a reasonable amount of time.

Any expense that doesn’t meet these three criteria is considered a reimbursement under a nonaccountable plan.

This distinction between these two types of plans is important because accountable plan reimbursements are not taxable to the employee, whereas nonaccountable plans are taxable.

Business Purpose

Expenses incurred as an employee while completing work for an employer have a business purpose. Examples include things like registration fees for a conference, taxi rides to the airport for a business trip, or meals while away on a business trip.

If however, an employer reimburses an employee for dinner when the employee works late, this does not qualify as a business purpose. This reimbursement would be taxable to the employee because it was made under a nonaccountable plan.

Reporting in a Reasonable Time

While what is considered a reasonable amount of time is subjective, the general rule is that all reimbursable expenses must be submitted within 60 days of when they were incurred.

Adequate reporting involves providing a record, like an expense report, of all expenses incurred and providing evidence, like receipts, to support the expenses.

Excess Reimbursement

If an employee receives a travel advance to cover travel expenses but spends less than the advance, the difference is an excess reimbursement and must be returned to the employer to not be taxable. If the excess isn’t returned in a reasonable amount of time, it’s taxable.

A reasonable period of time in this instance is generally deemed to be within 120 days of when the expense was incurred.

With a travel advance, employees should submit an expense report and receipts to substantiate all expenses.

Mileage and Business Use of Personal Vehicle

When an employee uses their personal vehicle for company business, you’ll need to reimburse them. You have three options.

• Standard mileage rate
• Actual costs
• Monthly allowance

Standard Mileage Rate

If you use the standard mileage rate, it is 57.5 cents per mile for 2020.

You can pay more, but the IRS’ safe-harbor threshold of 57.5 cents per mile will allow you a tax deduction without having to substantiate the rate.

Note that the IRS typically updates rates in December. So, you can expect to see the 2021 rate announced in December 2020. IRS 2021 Mileage Rates are here.

IRS Standard Mileage Rates 2020

Actual Costs

Instead of using the standard rate, you can reimburse employees for actual expenses.

The employee will sum up all the costs of owning the vehicle including everything from fuel, maintenance, tolls, registration, and insurance. And based upon the percentage of business miles driven, that portion of the total actual costs is reimbursed.

Monthly Allowance

Using the monthly allowance method is relatively easy. Each month you provide a set dollar amount to the employee.

If you require the employee to provide a mileage log at the end of the month, this will determine if any part of the allowance is taxable. If no mileage log is required, the entire allowance is taxable under an unaccountable plan.

If a mileage log is provided and the employee drove less than expected, they should return the excess allowance within 30 days. If they don’t, the excess becomes taxable to them.

An employee’s commute from their home to their normal place of business is not a reimbursable expense. Any business miles driven in excess of the commute miles is reimbursable.

For example, an employee’s normal round-trip commute is 20 miles. On Fridays, the employee works on-site at a client’s office that is 30 miles away from the employee’s home. So, the employee drives 60 miles round-trip on Fridays. Since this is longer than he would drive if he commuted to the office, you’ll want to reimburse the employee for 40 miles (60 miles – 20 miles).

Mileage Logs

Employees should keep mileage logs when using a personal vehicle for business use. The log should include:

• Employee’s name
• Description of vehicle
• Date of business use
• Purpose of business use
• Starting mileage on odometer
• Ending mileage on odometer
• Approval authorization

Here’s an example of a mileage log using Microsoft Excel.

Mileage log and expense report – employee reimbursement

Note that in this example, the employee drove from the office to a client and then back to the office. Therefore, there is no need to deduct commuting mileage.

But suppose, like in our example from above, that on Fridays the employee drives from home to the client’s location and back home. His mileage log would look like this:

Mileage log and expense report example – employee reimbursement

But what if in this example, the drive to the client’s office from the employee’s home was shorter than his regular commute? In this case there is nothing to reimburse and the employee enjoys the benefit of less driving.

What would happen if this same employee didn’t normally work on Fridays or he always worked from home on Fridays? Then the entire drive to the client’s office would be reimbursable since the employee’s normal work schedule didn’t require him to commute on Fridays.

Many employees will forget to deduct their normal commute from mileage reimbursement requests. You’ll want to remind them.

Direct Expense Reimbursement of Travel Expenses

For employees who travel frequently, providing them with a company credit card is ideal. But for those times when an employee must use their own money for business expenses, you’ll want to reimburse employees quickly.

For easy recordkeeping, have employees complete expense reports when seeking reimbursements. Like the mileage log, it will detail who incurred the expense and when, what it was for, and the amount.

You can reimburse your employees with cash; however best practices would be to pay with check or some other trackable means, like ACH.

Here’s an example of an easy expense report in Excel.

Travel expense report example – employee reimbursement

For each expense, the employee should include receipts to support the amounts requested.

Receipts for purchases should contain the amount, date, place, and a brief description of the expense.

For example, hotel receipts should include:

• The name and location of the hotel.
• The dates stayed.
• Separate amounts for charges (i.e. lodging, meals, or food).

Restaurant and meal receipts should include:

• The name and location of the restaurant.
• The names of people in attendance.
• The date and amount of the meal.

You may choose to reimburse employees for meal tips. Be sure to have a clear policy of what will be reimbursed and what will not. For example, you’ll reimburse up to 20% for tips. Anything above that will not be reimbursed.

You’ll also need to consider your policy for lost receipts. You can still reimburse but have the employee fill out a missing receipt form to document the expense.

In lieu of direct expense reimbursement, consider using a per diem.

A per diem provides the employee with a specified dollar amount per day to use on meals, snacks, lodging, or other miscellaneous purchases. Larger expenses like airfare would be paid using the direct expense reimbursement method or paid for directly by the company.

Per diems should be prorated for partial days of travel. Acceptable methods include the ¾’s method or any other method you choose that is reasonable.  The ¾’s method adds ¾ of a daily per diem rate on departure days and another ¾’s on return days.

The IRS sets per diem rates for cities and metropolitan areas. More expensive locales have higher daily rates than cheaper cities. For example, the daily rate for high cost cities like San Francisco, Vail, Colorado, and Nashville, Tennessee is $297. And many cities are designated high cost for only portions of the year. Miami and Park City, Utah are considered high cost only from December 1 – March 31.

And if you’re not in a high cost city, the daily rate is $200. These per diem rates are often updated each year. So you’ll always want to check for the current rates.

For example, Dave is travelling to Seattle for business. Seattle is a high cost locale. He’s leaving on Monday and returning on Thursday. Seattle’s maximum per diem rate is $297 per day. Dave will receive $222.75 ($297 x ¾) for Monday and Thursday and the full $297 for Tuesday and Wednesday.

Per diems are not taxable income to your employee if you use the IRS rates and your employee provides an expense report with receipts. However, using higher rates will create taxable income for the amount above the federal rate. And not submitting an expense report and receipts will make the entire per diem taxable because you’ll have an unaccountable plan and your company will not have the required receipts to support the tax deduction.

If your business operates in the transportation sector (i.e. shipping, trucking, or rail, etc…), it’s important to note that there are different per diem limits and rules you must follow.

Entertainment Expenses

With the 2017 Tax Cuts and Jobs Act, entertainment expenses are no longer tax deductible for companies.

As an employer, you may still reimburse your employees for entertainment expenses; however, these reimbursements will need to be segregated so that they are not included on your tax return. Examples of entertainment expenses include tickets to entertain clients at sporting events or country club fees for golf memberships.

What documentation you require for entertainment reimbursements is up to you but best practices suggest following the same requirements for travel or mileage reimbursements.

Commingling

If travel or meals involve both a business and personal aspect, only the portion of the expense that is business related is reimbursable.  Expense reports and receipts should indicate whether there are any personal expenses.

For example, an employee makes a business trip to California from Georgia and elects to stay two days after business is finished for a mini-vacation. Best practices would have the employee check out of his hotel room and check back in using his personal credit card to pay the hotel bill for his extended stay. This way he has two different receipts; one for business and one for pleasure. However, if he doesn’t do that and the entire hotel stay is charged on the same receipt, you’ll need to back out the charges related to his personal stay.

None of this information should be taken as legal or financial advice, nor should it deter you from seeking the assistance of a licensed attorney, accountant, or financial services professional. But if you want to make sure your company’s policies for employee reimbursements are consistent with best practices, implementing these policies is a great place to start!

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A Guide To Securing Travel Reimbursement: What You Need To Know

Traveling, whether for professional commitments or personal adventures, often comes with its fair share of expenses. From transportation and accommodation to meals and incidental costs, the financial aspects of travel can quickly add up. While these expenses are generally seen as a necessary part of the journey, they can sometimes strain one's budget, especially if they aren't anticipated. Fortunately, to alleviate this financial burden, numerous organizations, companies, and institutions have established travel reimbursement policies. These policies are designed to compensate individuals for certain costs they incur while on the move, ensuring that the financial aspects of their travels don't unduly burden them.

In this comprehensive guide, we will explore the underlying reasons for travel reimbursement, delve into its various categories, and provide insights on how individuals can effectively navigate the process to ensure they receive what they're entitled to.

Purpose Of Travel Reimbursement

Travel reimbursement serves as a mechanism to compensate individuals for expenses they incur while traveling for specific purposes. The primary goal is to ensure that individuals do not face financial strain due to work-related or other approved travels. Such reimbursements can cover a range of expenses, from transportation and accommodation to meals and incidental costs.

Types Of Travel Reimbursements 

Travel reimbursements are payments made to employees to cover expenses incurred while on business-related travel. There are several types of travel reimbursements, including: 

Business League

Business leagues, often non-profit organizations, may offer travel reimbursements to their members or representatives for attending meetings, conferences, or other league-related activities. The reimbursement typically covers transportation, accommodation, and sometimes daily allowances.

Business Trip

When employees travel for work, whether for meetings, training, or other job-related tasks, their employer often covers the associated costs. This can include flights, hotel stays, meals, and other travel-related expenses. The reimbursement process usually requires the employee to submit an expense report with receipts.

Beneficiary Travel

Beneficiary travel reimbursement is designed for veterans or specific beneficiaries who need to travel for medical or health-related reasons. For instance, the U.S. Department of Veterans Affairs offers travel pay reimbursement to eligible veterans and caregivers for travel expenses related to approved health care appointments.

Health Care Travel Reimbursement

Healthcare travel reimbursement is available in some countries to ensure that patients, especially those from remote areas, can access necessary medical services without being burdened by travel costs. For example, the NHS in the UK has a Healthcare Travel Costs Scheme (HTCS) that reimburses travel costs for eligible patients.

Employer-Provided Vehicle

When employers provide vehicles to their employees for work-related tasks, they might also offer reimbursements for associated costs. This can include fuel, maintenance, and other vehicle-related expenses. The reimbursement might be based on mileage or a fixed monthly car allowance. It's essential for employees to maintain accurate records and understand their employer's policy regarding personal use of the vehicle.

United States Regulations On Travel Reimbursement

Travel reimbursement regulations in the United States are designed to ensure that employees are fairly compensated for expenses incurred during business-related travels. These regulations are governed by the Internal Revenue Service (IRS) and other federal agencies. Here's a closer look at some of the key aspects:

Standard Mileage Rate

The IRS sets the standard mileage rate annually, which serves as the amount an employee can claim for every mile they drive for business purposes. For 2023, the standard mileage rate is 65.5 cents per mile for business travel. This rate is a reflection of the average costs of operating a vehicle, including gas, maintenance, and depreciation.

Meal Allowance

Meal allowances, often referred to as "per diem" rates, are set to cover the cost of meals and incidental expenses during business travel. The exact amount can vary based on the location of travel. For instance, traveling to major cities might have a higher per diem rate compared to smaller towns. The U.S. Department of State provides foreign per diem rates, which include meal costs and an additional amount to cover incidental travel expenses. It's essential for travelers to check the current rates and ensure they adhere to the set limits.

Accountable Plan Rules

An accountable plan is a reimbursement arrangement that meets specific IRS criteria, ensuring that reimbursements are not considered taxable income. For a reimbursement plan to be deemed "accountable," it must satisfy the following requirements:

Business Connection : The expenses must have a business purpose. This means they should be directly related to the business activities of the employer.

Substantiation : Employees must provide their employers with evidence of their expenses. This can be in the form of receipts, invoices, or other relevant documentation.

Returning Excess Amounts : If an employee receives an advance or an allowance that exceeds their actual expenses, they must return the excess amount to the employer within a reasonable time.

If a reimbursement arrangement does not meet these criteria, the IRS considers it a "non-accountable" plan, and reimbursements may be subject to taxation.

Diem Rates For Travelers

"Per diem" is a Latin term that translates to "per day." In the context of business travel, it refers to the daily allowance given to employees to cover expenses incurred while on official duty. This allowance is designed to cover lodging, meals, and incidental costs without the need for the traveler to submit detailed expense reports. Here's a closer look at the daily and mileage rates associated with per diem:

The daily rate, often referred to as the meal and incidental expenses (M&IE) rate, is set to cover the cost of meals and incidental expenses during business travel. The exact amount can vary based on the location of travel. For instance:

Traveling to major cities might have a higher per diem rate compared to smaller towns.

The U.S. Department of State provides foreign per diem rates, which include meal costs and an additional amount, equal to 10% of the combined lodging and meal costs, to cover incidental travel expenses.

For domestic travel within the United States, the General Services Administration (GSA) sets the per diem rates. For example, the M&IE per diem tiers for FY 2024 range from $59-$79, with the standard M&IE rate set at $59.

Mileage Rate

The mileage rate is designed to reimburse travelers for the costs associated with using their personal vehicles for business-related travels. This rate is set annually by the IRS and reflects the average costs of operating a vehicle, including gas, maintenance, and depreciation.

For 2023, the GSA has set the mileage reimbursement rate at 65.5 cents per mile for business travel.

This rate is applicable for travelers who opt to use their vehicles instead of other modes of transportation, such as air travel or rental cars. It's essential for travelers to maintain accurate records of their mileage to ensure proper reimbursement.

Get Travel Reimbursement

Travel reimbursement is more than just a financial relief; it's a testament to the value organizations place on their employees and members. As the world of business and healthcare continues to evolve, understanding the nuances of travel reimbursement becomes increasingly essential. Whether you're an employer setting policies or an employee navigating the reimbursement process, staying informed ensures fairness and transparency. This guide has aimed to shed light on the intricate facets of travel reimbursement, from its purpose to the regulations governing it. As you embark on your travels, remember to keep abreast of the latest guidelines and always advocate for your rights as a traveler. 

Discover more opportunities for American veterans by reading our guide on how to avail GI Bill tuition reimbursement . Visit American Veteran to find comprehensive online resources dedicated to American Veterans.

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• Travel Reimbursement Policy: A Comprehensive Guide

Starting a journey for a corporate excursion can be a whirlpool of commotion, but the genuine expedition frequently commences upon arrival, when confronted with a heap of receipts and the intimidating mission of maneuvering through your organization’s protocol for its travel reimbursement policy . This guide acts as your essential resource for understanding and mastering the intricacies of these policies, ensuring that you receive reimbursement for every eligible penny spent.

Understanding the Basics: What is a Travel Reimbursement Policy?

At its core, a travel reimbursement policy is a set of rules that governs how employees can claim expenses incurred on business trips. These guidelines are tailored to each company, detailing eligible expenses and the process for submitting claims. They’re the blueprint for fair compensation, covering transportation, lodging, meals, and other incidental costs.

Expense Categories

• Transportation: Flights, trains, taxis, and more.
• Accommodation: Hotels and rentals.
• Meals and Entertainment: Daily allowances based on location.
• Incidentals: Parking fees, internet charges, etc.

Spend Limits

These policies often set spending limits to prevent excessive claims, such as daily meal caps or maximum hotel rates.

Required Documentation

Receipts, invoices, and boarding passes are the keystones of a solid claim, providing the evidence needed to back up your expenses.

Approval Process

Understanding the chain of command for approvals is crucial to a smooth reimbursement experience.

Eligible Expenses: What Can You Claim?

Knowing what you can claim is half the battle. From efficient expense management solutions to transportation costs, here’s a breakdown of typical reimbursable expenses:

Transportation Costs

• Airfare, train tickets, rental cars, and taxi fares.
• Keep all travel documents as proof.

Accommodation Expenses

• Hotel stays and rentals are reimbursable.
• Save hotel bills or rental agreements.

Meals and Entertainment Allowances

• Companies usually provide a daily meal allowance.
• Document your meal expenses within the set limits.

Incidental Expenses

• Claim parking fees, internet charges, and tips.

Appropriate Documentation: How to Keep Track of Your Expenses

Organization is key when it comes to reimbursement. Here’s how to keep your expenses in check:

Save All Receipts

Collect and save every receipt related to your business expenses. Consider using a receipt management app for digital storage and easy access.

Record Details

For each expense, jot down the date, location, and purpose. This will streamline your claim process.

Use Digital Tools

Embrace digital tools and apps for expense tracking. They can automate the process, making it less of a chore.

Submission Procedures: Navigating the Reimbursement Process

With your documentation in order, it’s time to submit your claim. Here’s a step-by-step guide:

Create an Expense Report

Compile a detailed report of your expenses, complete with all supporting documents.

Submit Your Expense Report

Follow your company’s procedures, whether it’s through an online portal or via email, to submit your report.

Reimbursement Timelines: When Can You Expect to Get Paid?

Timelines for reimbursement vary, but most companies have set periods for processing claims. Stay informed about these timelines and follow up if necessary.

Tips and Strategies for Maximizing Your Reimbursement

Maximizing your reimbursement is an art. Here’s how to master it:

Review your company’s policy before your trip to understand the coverage and limits.

Keep Track of Expenses in Real-Time

Document expenses as they occur to ensure accuracy and ease the reimbursement process.

Submit Claims Promptly

Don’t delay in submitting your expense report. The quicker you submit, the faster you’ll be reimbursed.

Common Pitfalls to Avoid: Mistakes that Could Delay or Deny Your Reimbursement

Even with the best intentions, mistakes can happen. Here’s what to avoid:

Inadequate Documentation

Lack of proper receipts and invoices is a common reason for reimbursement hiccups.

Non-Compliance with Policy Guidelines

Stick to the rules set out in your company’s policy to avoid any reimbursement roadblocks.

Travel Reimbursement Policy Best Practices: Recommendations for Employers

For employers, crafting a clear and concise policy is paramount. Here are some best practices:

Clear Communication

Ensure all employees are well-versed in the policy’s details, from eligible expenses to submission guidelines.

Simplify Procedures

Streamline the process to avoid confusion and make it easier for employees to submit their claims. As we navigate the complexities of travel reimbursement, it’s clear that a solution like Clyr can transform this often cumbersome process into a seamless experience. With Clyr’s ability to integrate with major management platforms and provide real-time expense notifications, the days of manual tracking and lengthy reimbursement cycles can be a thing of the past.

Crafting a Travel Reimbursement Policy That Works for Everyone Leveraging Technology for Efficient Reimbursement 

In the age of digital transformation, leveraging technology is not just a convenience—it’s a necessity for efficient expense management solutions. With the right tools, the reimbursement process can be significantly streamlined, reducing the time from submission to payment. Here’s how technology can make a difference: 

• Automated Financial Reporting for Out-of-Office Teams : For teams that are constantly on the move, automated financial reporting can be a game-changer. It ensures that expenses are logged and categorized accurately, which is essential for timely reimbursement. 
• Integration-Friendly Financial Tools for Property Management : Property management teams often juggle multiple tasks and expenses. Integration-friendly financial tools can synchronize financial data across platforms, making it easier to track and manage expenses. 
• Real-Time Expense Tracking Software : Real-time tracking allows for immediate recording of expenses, which can prevent the loss of receipts and ensure that no expense goes unclaimed. 

By adopting top financial reporting software for field teams, companies can benefit from a more cohesive and transparent expense management process. Clyr, for instance, offers seamless financial data synchronization for field services, ensuring that every dollar spent is accounted for and reimbursed accordingly. 

The Role of Mobile Apps in Expense Management 

Mobile apps have revolutionized the way we manage our expenses on the go. They offer the convenience of capturing receipts and tracking expenses in real-time, which is particularly beneficial for employees who are often out of the office. Here are some advantages of using mobile apps for expense management: 

1. Instant Receipt Capture : Snap a photo of your receipt, and it’s securely stored and ready for your expense report. 

2. On-the-Spot Expense Entry : Enter expenses as they happen, reducing the risk of forgetting or losing track of them. 

3. Accessibility : Access your expense records anywhere, anytime, right from your smartphone. 

For example, a receipt management app can simplify the process of collecting and organizing receipts, making it easier for employees to submit accurate expense reports. This not only saves time but also reduces the likelihood of errors that could delay reimbursement.

How to Handle International Travel Expenses 

International travel adds another layer of complexity to expense management. Currency conversions, varying tax laws, and additional documentation requirements can complicate the reimbursement process. Here are some tips for handling international travel expenses: 

• Understand Currency Exchange Rates : Keep track of the exchange rates at the time of each transaction to ensure accurate reimbursement. 
• Know the Tax Implications : Different countries have different tax laws. Be aware of what can and cannot be claimed as a business expense. 
•   Use Efficient Expense Management Solutions : Choose a platform that can handle multiple currencies and automate the conversion process. 

For businesses with international operations, it’s crucial to have efficient expense management solutions that can adapt to the complexities of global travel. This not only simplifies the reimbursement process but also ensures compliance with international financial regulations. 

Addressing Common Questions About Travel Reimbursement 

Travel reimbursement policies can be complex, and employees often have questions about what they can claim and how to go about it. Here are some common questions and their answers: 

• What if I lose a receipt?- Check if your company accepts credit card statements or if they have a specific policy for lost receipts. Some companies may allow a signed statement explaining the expense. 
• Can I claim expenses for leisure activities during a business trip? – Typically, only business-related expenses are reimbursable. However, some companies may allow for a reasonable amount of leisure expenses if they do not add additional cost to the trip. 
• How do I claim mileage if I use my personal car?- Companies usually reimburse mileage at a standard rate. Keep a log of your business travel mileage to submit with your expense report. 
• How can I address a delay in my reimbursement? – Take the initiative to follow up with your finance department. While delays can happen, it is crucial to verify that your claim is being processed.

By addressing these questions proactively, companies can alleviate concerns and make the reimbursement process smoother for everyone. 

The Future of Travel Reimbursement: Trends and Predictions 

The landscape of travel reimbursement is evolving with technology and changing work patterns. Here are some trends and predictions for the future: 

• Increased Automation : With platforms like Clyr, we can expect more expense management automation , reducing manual entry and speeding up the reimbursement cycle. 
• Mobile-First Solutions : As remote work becomes more common, mobile apps will play a larger role in expense management. 
• Personalized Expense Policies : Companies may start to offer more personalized policies that cater to individual needs and work habits. 
• Integration with Travel Booking : Seamless integration with travel booking systems will allow for pre-approval of expenses and automatic tracking. 

These advancements will not only make the process more efficient but also more employee-friendly, leading to higher satisfaction and compliance.

Case Studies: Successful Reimbursement Stories 

Let’s explore a few case studies where companies have successfully implemented efficient expense management solutions: 

• A Tech Startup: By using expense report automation , a growing tech company reduced its reimbursement cycle from weeks to just a few days, improving employee satisfaction. 
• A Consulting Firm: With the adoption of real-time expense tracking software, consultants could submit expenses on the go, leading to real-time budget updates and better financial planning. 
• A Nonprofit Organization : By simplifying job costing with financial software, a nonprofit was able to allocate funds more accurately and report to donors more transparently. 

These stories highlight the positive impact of adopting modern expense management practices. 

Expert Insights: Interviews with Finance Professionals 

In conversations with finance professionals, several key points are consistently highlighted: 

• The Importance of Policy Clarity : Clear policies prevent confusion and ensure that employees know what’s expected of them. 
• The Role of Technology: There’s a consensus that technology, especially expense reporting in QuickBooks and similar integrations, is crucial for efficiency. 
• Employee Training: Educating employees on the use of expense management tools is essential for maximizing their benefits. These insights from experts underscore the need for companies to invest in both technology and employee training. 

The Intersection of Travel Policies and Employee Satisfaction 

Employee satisfaction is closely tied to how travel policies are structured and implemented. A fair and transparent policy can lead to: 

• Boosted Morale: The sense of being valued among employees is heightened when they are assured that their expenses will be reimbursed effortlessly.
• Better Compliance: Clear guidelines and easy-to-use tools encourage employees to comply with the policy. 
• Attracting Talent: Competitive reimbursement policies can be a factor in attracting and retaining top talent. 

By considering employee satisfaction, companies can create policies that are beneficial for both the staff and the organization. 

Crafting a Travel Reimbursement Policy That Works for Everyone 

Creating a travel reimbursement policy that meets the needs of both the company and its employees involves several key steps: 

• Gather Input: Include feedback from employees who travel frequently to understand their needs and challenges. 
• Define Clear Guidelines: Establish what is and isn’t reimbursable, and under what circumstances. 
• Leverage Technology: Implement tools like Clyr to streamline the process and reduce administrative burdens. 
• Regularly Review and Update: As business needs and travel norms evolve, so should your policy. 

By crafting a well-thought-out policy, companies can ensure a smooth reimbursement process that supports their financial goals and keeps employees content. 

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Travel and Expense

What is a travel allowance definitions and insights.

A travel allowance can be an effective way to manage employee travel expenses and manage costs for the employee. 

When employees travel for business, there are myriad expenses, from hotels to taxis or ride-sharing services. Using a travel allowance can help give travelers flexibility and control while increasing compliance with tax regulations. 

What Is a Travel Allowance? 

A travel allowance is compensation paid by an employer to employees to cover expenses incurred when traveling for business. In addition to lodging and transportation, travel allowances are typically used for airfare, meals, and other expenses related to business travel. It is business travel compensation, provided either before or after travel is completed. 

Managing business travel compensation can be complex and hard to manage. The way businesses handle travel compensation is changing, as leaders look to implement tools that aid travelers and companies alike. 

Technology is transforming how companies manage all aspects of employee travel , including the creation and coordination of travel allowances. 

Types of Travel Allowance 

There are many types of travel allowances, which can be given upfront or based on a reimbursement schedule. Here is a look at some of the most common. 

Fixed Travel Allowance 

A fixed travel allowance is a flat rate that is offered to an employee, irrespective of the level of expenses incurred. Employees are responsible for managing their travel expenses and determining how to use the money best to accommodate their needs. It is commonly used with employees for short trips or who travel infrequently. 

Typically, with a fixed allowance, if the employee spends less than the allocated amount, the employee can keep the difference. If the employee spends more, they are responsible for making up the difference. Businesses using fixed travel allowance should work with their tax professional to understand the implications of this practice. 

Daily Travel Allowance 

Also called a per diem, a daily travel allowance is an amount used for each day of travel and can be used for lodging, transportation, meals, and other travel expenses. Typically, a traveler will reconcile the per diem by submitting an expense report and receipts. The traveler will be reimbursed for any expenses they spent in excess and will return money that was unspent. 

Travel Reimbursement 

This travel allowance requires the traveler to submit receipts for actual expenses incurred, which are then reimbursed. This process can be cumbersome and time-consuming for the traveler. If reimbursement is not done in a timely manner, it can be burdensome for the employee, who is essentially lending money to the company. Fortunately, there are technologies available today to simplify this work. 

Mileage Allowance 

This type of allowance pays the employee for miles traveled on business. It is typically used when employees use their own car for business-related travel. Technologies can tracking and  reimbursing for mileage simpler and more accurate. 

Methods for Calculating Travel Allowances 

When using travel allowances as part of a corporate travel program, one key consideration is how the travel allowances are calculated. 

The process often has to consider the distance traveled and the time spent traveling. Here is one way to calculate a travel allowance. 

Location and Days of Travel 

Start by determining the location of the traveler at midnight on each day of travel. A day of travel is defined as a 24-hour period an employee is conducting business while traveling. 

The day of travel ends when the next day starts or they return home from a business trip to their home or office. For example, if an employee leaves for a trip at 4 p.m., the first day of travel is from 4 p.m. that day until 4 p.m. the next. 

Lodging allowances are provided based on whether an employee spends the night in accommodations other than their own home. Typically, lodging allowances are based on the location and the current price rates for various hotel categories, based on company preferences for the level of hotels allowed. 

Unlike with other categories, usually lodging is an either/or determination. Employees are either allowed the lodging allowance or not based on the circumstances of the trip. 

Like with lodging, meal allowances are usually based on the prevailing costs of meals in each location. It assumes that a traveler will have three meals a day. 

Typically, a meal allowance covers both meals and incidentals, such as snacks. Often it is prorated based on the time in any given day a traveler is on the road. 

The meal allowance may also be reduced if there are meals provided as part of the work travel, such as part of a conference registration fee or transportation ticket. 

Managing Travel Allowances 

Managing travel allowances is a complex task. Here are some tips on how to effectively implement and manage a program: 

• Develop a Clear Policy. Travelers need to understand the specifics in your travel program and how allowances are used. The policy needs to spell out, for example, what expenses are allowed and not allowed and the ways in which allowances are calculated. Transparency is essential to ensure all employees understand how travel expenses are covered 
• Consider Incidentals. Business travelers face many complexities and challenges. You want a policy that makes it easy for travelers to navigate while on the road. Be sure your policy covers costs that may arise, including parking, fuel, tips, laundry services, printing, internet fees, and luggage check fees 
• Analyze Data. You need a system in place that collects and reports on travel data to allow you to better understand trends, shifts and challenges. With visibility into your travel program, you can make timely, well-informed decisions 

Developing Travel Allowance Policies and Guidelines 

If your company wants to develop a travel allowance policy, where should you begin? 

The policy should be rooted in a broader travel policy which should consider the following: 

• Scope. What aspects of business travel will your policy cover? 
• Coverage. Determine which elements of travel the policy will cover, such as air travel, lodging, meals, incidentals, and ground transportation 
• Reimbursement Types. Will your company use travel allowances and, if so, which types? 
• Participation. How will policies be determined? Be sure to include staff from human resources, finance, and departments that frequently travel, in determining the policy 
• Safety. Be sure your policy provides protection for employees while they are traveling  
• Expense Reporting. Develop tools or adopt that will be used for the reporting of travel expenses, with an emphasis on scalability, technology integration, and ease of use 

Technological Advancements in Travel Allowance Management 

Technology is changing the way companies manage business travel . There are powerful platforms available today that integrate travel policies, allow for the booking of travel and itinerary management and provide robust data collection and travel. 

Employees need access to easy-to-use tools that allow for the recording of receipts and other transactions, let them reconcile expenses and generate expense reports, and simplify approvals and routing. 

SAP Concur solutions can provide companies with integrated business travel, expense, and invoice solutions. With SAP Concur solutions, companies can book travel, manage expenses, integrate with business systems, manage invoices, and more. 

Learn more about how SAP Concur solutions can simplify your travel management . 

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What Are Travel Expenses?

Understanding travel expenses, the bottom line.

• Deductions & Credits
• Tax Deductions

Travel Expenses Definition and Tax Deductible Categories

Michelle P. Scott is a New York attorney with extensive experience in tax, corporate, financial, and nonprofit law, and public policy. As General Counsel, private practitioner, and Congressional counsel, she has advised financial institutions, businesses, charities, individuals, and public officials, and written and lectured extensively.

For tax purposes, travel expenses are costs associated with traveling to conduct business-related activities. Reasonable travel expenses can generally be deducted from taxable income by a company when its employees incur costs while traveling away from home specifically for business. That business can include conferences or meetings.

Key Takeaways

• Travel expenses are tax-deductible only if they were incurred to conduct business-related activities.
• Only ordinary and necessary travel expenses are deductible; expenses that are deemed unreasonable, lavish, or extravagant are not deductible.
• The IRS considers employees to be traveling if their business obligations require them to be away from their "tax home” substantially longer than an ordinary day's work.
• Examples of deductible travel expenses include airfare, lodging, transportation services, meals and tips, and the use of communications devices.

Travel expenses incurred while on an indefinite work assignment that lasts more than one year are not deductible for tax purposes.

The Internal Revenue Service (IRS) considers employees to be traveling if their business obligations require them to be away from their "tax home" (the area where their main place of business is located) for substantially longer than an ordinary workday, and they need to get sleep or rest to meet the demands of their work while away.

Well-organized records—such as receipts, canceled checks, and other documents that support a deduction—can help you get reimbursed by your employer and can help your employer prepare tax returns. Examples of travel expenses can include:

• Airfare and lodging for the express purpose of conducting business away from home
• Transportation services such as taxis, buses, or trains to the airport or to and around the travel destination
• The cost of meals and tips, dry cleaning service for clothes, and the cost of business calls during business travel
• The cost of computer rental and other communications devices while on the business trip

Travel expenses do not include regular commuting costs.

Individual wage earners can no longer deduct unreimbursed business expenses. That deduction was one of many eliminated by the Tax Cuts and Jobs Act of 2017.

While many travel expenses can be deducted by businesses, those that are deemed unreasonable, lavish, or extravagant, or expenditures for personal purposes, may be excluded.

Types of Travel Expenses

Types of travel expenses can include:

• Personal vehicle expenses
• Taxi or rideshare expenses
• Airfare, train fare, or ferry fees
• Laundry and dry cleaning
• Business meals
• Business calls
• Shipment costs for work-related materials
• Some equipment rentals, such as computers or trailers

The use of a personal vehicle in conjunction with a business trip, including actual mileage, tolls, and parking fees, can be included as a travel expense. The cost of using rental vehicles can also be counted as a travel expense, though only for the business-use portion of the trip. For instance, if in the course of a business trip, you visited a family member or acquaintance, the cost of driving from the hotel to visit them would not qualify for travel expense deductions .

The IRS allows other types of ordinary and necessary expenses to be treated as related to business travel for deduction purposes. Such expenses can include transport to and from a business meal, the hiring of a public stenographer, payment for computer rental fees related to the trip, and the shipment of luggage and display materials used for business presentations.

Travel expenses can also include operating and maintaining a house trailer as part of the business trip.

Can I Deduct My Business Travel Expenses?

Business travel expenses can no longer be deducted by individuals.

If you are self-employed or operate your own business, you can deduct those "ordinary and necessary" business expenses from your return.

If you work for a company and are reimbursed for the costs of your business travel , your employer will deduct those costs at tax time.

Do I Need Receipts for Travel Expenses?

Yes. Whether you're an employee claiming reimbursement from an employer or a business owner claiming a tax deduction, you need to prepare to prove your expenditures. Keep a running log of your expenses and file away the receipts as backup.

What Are Reasonable Travel Expenses?

Reasonable travel expenses, from the viewpoint of an employer or the IRS, would include transportation to and from the business destination, accommodation costs, and meal costs. Certainly, business supplies and equipment necessary to do the job away from home are reasonable. Taxis or Ubers taken during the business trip are reasonable.

Unreasonable is a judgment call. The boss or the IRS might well frown upon a bill for a hotel suite instead of a room, or a sports car rental instead of a sedan.

Individual taxpayers need no longer fret over recordkeeping for unreimbursed travel expenses. They're no longer tax deductible by individuals, at least until 2025 when the provisions in the latest tax reform package are due to expire or be extended.

If you are self-employed or own your own business, you should keep records of your business travel expenses so that you can deduct them properly.

Internal Revenue Service. " Topic No. 511, Business Travel Expenses ."

Internal Revenue Service. " Publication 463, Travel, Gift, and Car Expenses ," Page 13.

Internal Revenue Service. " Publication 5307, Tax Reform Basics for Individuals and Families ," Page 7.

Internal Revenue Service. " Publication 463, Travel, Gift, and Car Expenses ," Pages 6-7, 13-14.

Internal Revenue Service. " Publication 463, Travel, Gift, and Car Expenses ," Page 4.

Internal Revenue Service. " Publication 5307, Tax Reform Basics for Individuals and Families ," Pages 5, 7.

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Topic no. 511, Business travel expenses

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Travel expenses are the ordinary and necessary expenses of traveling away from home for your business, profession, or job. You can't deduct expenses that are lavish or extravagant, or that are for personal purposes.

You're traveling away from home if your duties require you to be away from the general area of your tax home for a period substantially longer than an ordinary day's work, and you need to get sleep or rest to meet the demands of your work while away.

Generally, your tax home is the entire city or general area where your main place of business or work is located, regardless of where you maintain your family home. For example, you live with your family in Chicago but work in Milwaukee where you stay in a hotel and eat in restaurants. You return to Chicago every weekend. You may not deduct any of your travel, meals or lodging in Milwaukee because that's your tax home. Your travel on weekends to your family home in Chicago isn't for your work, so these expenses are also not deductible. If you regularly work in more than one place, your tax home is the general area where your main place of business or work is located.

In determining your main place of business, take into account the length of time you normally need to spend at each location for business purposes, the degree of business activity in each area, and the relative significance of the financial return from each area. However, the most important consideration is the length of time you spend at each location.

You can deduct travel expenses paid or incurred in connection with a temporary work assignment away from home. However, you can't deduct travel expenses paid in connection with an indefinite work assignment. Any work assignment in excess of one year is considered indefinite. Also, you may not deduct travel expenses at a work location if you realistically expect that you'll work there for more than one year, whether or not you actually work there that long. If you realistically expect to work at a temporary location for one year or less, and the expectation changes so that at some point you realistically expect to work there for more than one year, travel expenses become nondeductible when your expectation changes.

Travel expenses for conventions are deductible if you can show that your attendance benefits your trade or business. Special rules apply to conventions held outside the North American area.

Deductible travel expenses while away from home include, but aren't limited to, the costs of:

• Travel by airplane, train, bus or car between your home and your business destination. (If you're provided with a ticket or you're riding free as a result of a frequent traveler or similar program, your cost is zero.)
• The airport or train station and your hotel,
• The hotel and the work location of your customers or clients, your business meeting place, or your temporary work location.
• Shipping of baggage, and sample or display material between your regular and temporary work locations.
• Using your car while at your business destination. You can deduct actual expenses or the standard mileage rate, as well as business-related tolls and parking fees. If you rent a car, you can deduct only the business-use portion for the expenses.
• Lodging and non-entertainment-related meals.
• Dry cleaning and laundry.
• Business calls while on your business trip. (This includes business communications by fax machine or other communication devices.)
• Tips you pay for services related to any of these expenses.
• Other similar ordinary and necessary expenses related to your business travel. (These expenses might include transportation to and from a business meal, public stenographer's fees, computer rental fees, and operating and maintaining a house trailer.)

Instead of keeping records of your meal expenses and deducting the actual cost, you can generally use a standard meal allowance, which varies depending on where you travel. The deduction for business meals is generally limited to 50% of the unreimbursed cost.

If you're self-employed, you can deduct travel expenses on Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship) , or if you're a farmer, on Schedule F (Form 1040), Profit or Loss From Farming .

If you're a member of the National Guard or military reserve, you may be able to claim a deduction for unreimbursed travel expenses paid in connection with the performance of services as a reservist that reduces your adjusted gross income. This travel must be overnight and more than 100 miles from your home. Expenses must be ordinary and necessary. This deduction is limited to the regular federal per diem rate (for lodging, meals, and incidental expenses) and the standard mileage rate (for car expenses) plus any parking fees, ferry fees, and tolls. Claim these expenses on Form 2106, Employee Business Expenses and report them on Form 1040 , Form 1040-SR , or Form 1040-NR as an adjustment to income.

Good records are essential. Refer to Topic no. 305 for information on recordkeeping. For more information on these and other travel expenses, refer to Publication 463, Travel, Entertainment, Gift, and Car Expenses .

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A Guide to Travel Expense Reimbursement Process

Table of Contents

Introduction

We live in a world where you can access multiple services anytime, anywhere, with a single click on our phones. You can now order food, book a hotel, rent a car, and perform other tasks successfully with just a smartphone and the internet. 

Business travel should be no different! You should be able to plan business trips with ease and receive travel expense reimbursements with equal ease. 

Travel expense reimbursement meaning

Surely, if you have friends, you know what reimbursement means. You pay on their behalf and they pay you back later! We know that in the “friend” scenario, it almost never comes back, but in travel expense reimbursement , your money comes back to you within a specific time limit. 

Today, in most organizations, reimbursement requests are entertained and processed manually or semi-automatically. Whether it is for employees or employers, this is nothing short of a nightmare. These manual processes are cumbersome and error-ridden, leading to long waiting periods. 

Does your organization suffer from the same travel reimbursement inefficiencies ? How long do employees in your organization wait before their expense claims are settled? 

It’s high time you switched to an agile system that can make your firm’s travel reimbursement hassle-free . Do you know that you can bring down the travel expense reimbursement cycle to 5 days or less? Read on as we deep dive into expense reimbursement .

Also, Read: A Guide to Travel and Expense Management

How does travel expense reimbursement work?

Travel expense reimbursement is the process of paying your employees back for the out-of-pocket expenses incurred during a business trip . The firm must reimburse the employee fully if the employee, during the business trip , had paid from his wallet for expenses such as travel, food, etc. 

Organizations globally verify the legitimacy of the expenses before reimbursing the employee. To do that, employees must submit a travel expense report with details of the actual cost . The line managers and finance teams then verify the report to ensure its legitimacy and compliance.

This entire process – if not automated – can take days or, worse, even months. Also, it can affect the employee’s productivity and negatively impact his morale – which will be reflected in his work! 

Is travel expense reimbursement mandatory for employers?

As per existing labor laws in any country, travel reimbursement is not mandatory. However, if employees of an organization travel for the company and spend out of their personal pocket during such travel, then the organization is obligated to reimburse such business travel expenses . 

To accommodate such expenses, organizations may consider providing a travel allowance for employees. On the other hand, on the provision of original receipts of expenses incurred, the amount may be reimbursed within a specific period (as decided by the organization).

How travel reimbursement benefits everyone ?

Here are some of the advantages of reimbursement: 

• Faster reimbursements will boost employee morale . 
• Travel expense reimbursement is considered business expenses that can be used for tax deductions.
• It can also positively impact employee efficiency and productivity

Let us look at this in more detail as we analyze the benefits for both employers and employees.

Benefits for employers

There are multiple benefits to automating travel reimbursement in your firm. Here are some of them: 

1. Reduce errors

In traditional expense reporting and travel reimbursement processes , there’s a high chance of committing errors. The employee could make this error while submitting the expense report , the manager while verifying, or the finance department. Worry no more. Automation can help eliminate errors in these processes. 

2. Eliminate paperwork 

You can eliminate your firm’s mind-boggling amount of paperwork by automating the entire travel reimbursement process . Your supervisors and finance teams no longer have to go through a ton of paperwork and then approve or reject the report.

Instead, by automating the process, they can now view the reports on a single screen and approve or reject them with a single click. Thus, making the entire process quick and efficient. 

Quick Read: 5 Easy Steps to Paperless Expense Filing

3. Greater policy compliance 

Automation is your best bet if you aim for greater policy compliance rates in your firm. By automating the reimbursement process , you can prevent reports that violate your company’s travel policy from getting reimbursed. Furthermore, in most expense management software, if there are any policy violations in the report, the system will flag it and notify both the user and approver.

4. Increased visibility

Using automated software for travel expense reimbursement , you can get better visibility of where your funds are being spent. Additionally, using the system, you can accurately find the categories you’re overspending or under-spending. Centralized spend visibility gives you better control over your funds and helps forecast future expenses. 

Benefits for employees

Now, let us look at how a good travel reimbursement process helps employees too.

1. Lowers the personal burden 

When you have a good travel expense reimbursement process in place, your employees feel assured that personal money spent on business expenses will be reimbursed. 

Any delays in the process may force them to be conscious of their spending habits. This may affect their liquidity when it comes to other essential personal expenses . 

2. Stress-free travel

Structured travel expense reimbursement processes ensure that employees’ business travel trips are stress-free. They do not have to worry about reimbursement. 

Timely settlements ensure that despite some lag in claim settlements , employees feel assured that if they provide original documents in support of their expenses, expenses will be reimbursed. 

3. Makes expense claims easy

A simple yet complete workflow for travel expense reimbursement ensures that employees stick to procedures and expense policies . Employees prefer clear-cut rules and easy-to-follow procedures as this benefits them too.

Also, Read: Corporate Travel Management

What are reimbursable travel expenses?

Certainly, not all expenses will be reimbursed by your company. So, how do you know what’s acceptable and what’s not? 

In this case, a comprehensive travel and expense policy works like a guide!

a) What is travel expense reimbursement policy? 

A travel reimbursement policy of a company is an official document that specifies the rules and procedures for travel expense reimbursement. Here are some of the aspects a travel reimbursement policy typically covers:

• Travel expenses your firm will cover
• Travel expenses your firm will not cover
• How employees should report expenses
• How and when will employees be reimbursed

b) What to include in a travel expense reimbursement policy? 

Since the travel and expense policy covers all aspects of travel expense reimbursement . It must be your “go-to” document for any clarifications in this regard. 

Let us look at the types of expenses that are included in the policy.

1. Travel expenses

The travel expense policy must detail the expenses that your firm will cover. Here are some of the travel-related expenses that most organizations cover: 

• Hotel accommodation
• Meals 
• Parking 

Make sure you mention the spending limits clearly, so the employees don’t overspend and end up not receiving reimbursement. 

2. Level of the employee

In some organizations, the level of the employee plays a significant role in the reimbursement process. In your travel policy, mention the business travel expenses you will reimburse at the employee level.

3. Non-employees

In some organizations, the travel policy states that employees can take their family and spouses along for the business trip. Some organizations also reimburse the expenses for the employee’s family members; if your firm is ready to do that, then state it in the policy.

4. Exclusions

In your expense policy, make sure you include the travel costs that will not be covered. This way, your employees will know where to spend their money. Here are some of the items that most companies do not reimburse:

• Alcohol 
• Flight and hotel room upgrades 
• expenses incurred on family members
• Non-policy compliant expenses 

5. Responsibility of employees

State all the steps your employees need to follow for reimbursement . In some companies, employees need to submit all the receipts along with their travel expense reports manually. On the other hand, in some companies, employees are required to submit it digitally. Make sure you add the reimbursement approval workflow into the policy. This way, your employees know whom to contact when reimbursement takes time. 

Mention the estimated time for the reimbursement to be reflected. This way, your employees will know when to expect the reimbursement. 

Employees’ daily allowance to cover business-related expenses is called per diem . Ensure you include per diem rates and other related information in the policy. 

So, that brings us to the question of what expenses are allowed and what are not.

c) Allowable expenses 

Here’s a list of all allowable travel and other incidental expenses that can be reimbursed: 

• Transportation
• Baggage fees
• Laundry costs 
• Visa charges

d) Non-allowable expenses 

All expenses that do not comply with your firm’s travel policies are non-allowable expenses. Also, personal expenses that employees incur are non-reimbursable . Here’s a list of non-allowable expenses: 

• Personal mobile bills
• Parking tickets and violations 

Also, Read: A Guide to Creating Corporate Travel Policy

Calculation of travel expenses for reimbursement

Calculation of travel expenses is an important aspect of expense management. Even if there are just a few expense claims, wrong calculations can have an impact. To avoid this, clarity on the process of calculation of travel expenses is essential.

Let us look at how to calculate travel expenses for reimbursement.

1. Calculate reimbursements using an expense report

A travel expense report is a document that contains a list of all expenses that the employee incurs during the trip. The sum of all those expenses is what constitutes the travel expense reimbursement amount. 

Travel expense reports may be submitted through manual or digital methods. Manual methods are time-consuming and prone to errors. Digital methods are quick and easy to use. So, both employees and employers benefit from such a process.

Want to know more? Check out our blog on travel and expense report

2. Authenticate claims

One of the most important stages is to authenticate the claims made for expenses incurred during travel for business purposes . Travel and expense policies clearly mention claimable expenses . The finance team must validate these claims by ensuring that they are compliant. 

For instance, they may cross-verify that amounts are within the permissible limits or that the mileage rate used is the right one for the employee (based on grade and other parameters).

3. Match expense amounts against original receipts

The next stage involves confirming that the expenses claimed were actually incurred by the employee, matching the actual expense (no fraud or padding), and proof of such expenses is attached to the expense report .

For instance, an employee may have claimed an amount and attached the original receipt for dry cleaning . A quick look at the policies may confirm that dry cleaning charges are not reimbursed by your company.

4. Settle claims

Once the above parameters are met and the claim is valid, you can settle the employee’s claim. For instance, for transportation costs , your finance team must verify that the employee has only claimed fuel costs (within permissible limits for their employment grade) where he has used a personal vehicle .

Then, you can either directly credit the employee’s bank account or use any other process that is followed in your organization. 

Also, Read: A Guide to Business Travel Management

Challenges in travel expense reimbursement

1. manual processes.

Manual processes are a big hurdle for quick and efficient travel expense reimbursements . From the time that an expense report is filed to when the claim is eventually settled, it crosses too many hands. It not only increases the time takes to settle the claim but increases the chances of errors or fraud .

2. Unclear travel and expense policies

Unless your travel and expense policy is comprehensive and clear, you are looking at problems and endless delays in expense reimbursements . You must simplify your travel and expense policy so employees understand it better and stick to the rules. Similarly, when the approval workflows are clearly defined and straightforward, the process is smoother and quicker. 

3. Complicated workflows

Complicated workflows can seriously hamper your travel expense reimbursement process . Whether you have linear or multi-layered workflows , it is important to keep them simple and straightforward. The clarity in the approval process goes a long way in ensuring that employees get approval quickly and the claims move to the next stage as quickly as possible. 

Best practices to streamline your travel expense reimbursement process

Looking to speed up the travel reimbursement process in your firm? Here are our best practices to make your company’s reimbursement process hassle-free .

1. Submitting expense reports on time

Delays in submitting expense reports are one of the important reasons for a slow employee travel expenses reimbursement process . To tackle this issue, set a deadline for submitting expense reports to which your employees must adhere. 

2. Follow an expense policy 

A clear and well-defined expense policy has multiple advantages. From reducing fraudulent claims to increasing the policy compliance rate to eliminating out-of-policy spending , expense policy can positively impact your reimbursement process . If you do not have an expense policy for your firm, we recommend formulating one to make the reimbursement process smooth. 

3. Implement an effective validation process

For the finance team, it’s arduous to go through each report and check for compliance. Due to this strenuous task, the chances of approving reports violating your policy are also very high. That’s why it’s always best to automate validation to speed up the process.

4. Automate travel expense reimbursement

By automating the travel expense reimbursement process , you can save both money and time for your organization. Additionally, automation can make the entire process quick and error-free . 

Also, Read: Expense Management Automation

Impact of automation on travel expense reimbursement

Do you know that organizations that have moved to an automated expense management system have quoted “ Reimbursing employees faster ” as the second biggest reason for digitizing T&E

When every other part of your business is being digitized, why ignore employee travel expenses ? 

Manual processes hinder productivity and are time-consuming. It is time to move to a simpler travel expense reimbursement process – for employers and employees. Now, reimbursing employees can be quick and easy. With an automated and efficient travel expense reimbursement system, you can

• Save on several hundred man-hours dedicated to authenticating and reconciling corporate travel expenditures.
• Digitally access travel expense data in real-time allowing your finance team to spend time on other critical parts of your business.
• Perform expense tracking digitally and access data instantly for better reporting and analysis. 

Essential features in an ideal travel expense reimbursement system

According to a 2020 Forrester study, 30% of finance leaders in top firms are unhappy with their T&E solution. Therefore, before zeroing in on a travel reimbursement system , here are the things you should look for: 

1. It has an advanced OCR technology 

Manually filling expense forms with data from invoices and receipts is a thing of the past now. Thanks to optical character recognition in most expense software , your employees now just have to click the receipt picture. OCR will then automatically capture the invoice data and create an expense. 

2. It should auto-capture expenses from all sources

Let’s accept it, manually filling out expense forms requires a special kind of superpower. Pick an expense software that auto-captures expenses from multiple sources like emails, SMS, credit, and debit card statements, TMCs, etc. 

3. It can detect non-policy-compliant expenses 

An efficient travel reimbursement system must automatically detect expenditures that do not comply with your company’s T&E policy and notify you. Thus helping you in maintaining a higher compliance rate. 

4. It has the best UI 

Spare your employees from using automated systems with an old, cluttered user interface. Instead, pick software that has the best and easy-to-use UI. 

5. GST compliance

Pick a T&E system that makes your firm GST compliant and allows you to claim ITC for all booking and expenses. 

Also, Read: 10 Best Travel Management Software

Simplify your travel expense reimbursement with Happay

If you’re looking for the best automated T&E management system to make your firm’s expense reporting and reimbursement process robust, your search ends with Happay . Known as Asia’s #1 T&E management solution for India’s conglomerates, we offer a complete paperless expense management solution with incredible cost savings.

Here are some of the key features of Happay: 

• You can offer a superior employee experience for your traveling employees and become a tech-savvy employer to attract the best talent in the industry.
• We offer 100% visibility as you enjoy better predictability and control over your T&E budget.
• Whether it is international or domestic , employees can self-book flights and hotels in one user-friendly app on mobile or the web. Pre-spend violations , real-time reporting, and policy configurations can be customized and are included in the system’s architecture.
• File travel expenses on the go using the in-built OCR technology in Happay
• Happay auto-captures expenses from email, text messages, credit card statements, and other sources. 
• Automate per diem based on expense data
• Happay’s GST return module can help gather all your GST data in one place. Save more on your travel spending with accurate ITC claims

And the benefits do not end here. Want to know more about Happay? Schedule a demo with us today. 

Travel expense reimbursements are always a sore point for employees as it is associated with emails back and forth along with long wait times. However, it does not have to be so. 

Apart from numerous other benefits, automated expense management solutions ensure that the turnaround time for travel expense reimbursements is short. As employees enjoy the quick settlements, finance teams can stay stress-free as reconciliations and other reporting are insightful and automatic. 

In most companies, for travel expense reimbursement, employees must submit expense reports along with proof of expenses.

As long as the reimbursement is for expenditures incurred for the organization, such expenses are not taxable income. Whether it is an allowance included in the income is a question that can be answered by looking at the employee’s individual salary details.

Here are a few expenses that businesses reimburse:  a) Air ticket/ train fare b) Cab fare  c) Meals during the travel

Since travel expense reimbursement is not an income for the employee, it need not be reported as income by the organization too.

Related Posts:

• 10 Best Travel Management Software and Systems in 2023
• Corporate Travel Management: The Business Guide
• 10 Best Corporate Travel Management Software in 2023
• A Guide to Creating a Corporate Travel Policy 2023…
• The Ultimate Guide to Travel and Expense Management…
• Corporate Travel Program: Why Does Your Business Need One?

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Travel Allowance: Meaning, Rules & More

What is travel allowance.

An employee may receive a travel allowance from their employer to help cover the costs associated with work travel. This kind of allowance is usually given on top of an employee's base pay or salary and is intended to cover the costs of business travel. The amount of travel reimbursement may differ based on the employer's policies, the nature and length of the journey, and the destination.

What are the Types of Travel Allowances?

Depending on the nature of the job, travel frequency, budget constraints of the company, and more such factors, different types of travel allowances can be offered to an employee.

1. Fixed Travel Allowance

A fixed travel allowance in salary implies that this is a fixed amount offered to the employee irrespective of the actual expenses incurred.

2. Daily Travel Allowance

As the name suggests, a daily travel allowance is offered to employees on a per-day basis, which covers their travel, meals, accommodation, and other such expenses.

3. Mileage Allowance

Employers can also provide a miles-based travel allowance to their employees, which depends on the number of miles they travel for business.

4. Travel Reimbursement

A travel reimbursement depends on the actual expense proofs submitted by an employee, which can include travel by air, rail or road.

The type of travel allowance offered by an employer may depend on various factors such as the nature of the job, frequency of travel, and budget constraints.

What are the Rules Applicable for Travel Allowance?

In India, there are specific tax rules governing travel allowances. Some of the basic travel allowance rules applicable to employees are as follows:

Exemption Limit

The exemption limit for travel allowances is determined by the Indian government and is subject to change. The exemption limit for travel allowance in India is ₹1,600 per month or ₹19,200 per year, as per FY 2022-2023. Read about taxation related to business travel in this blog .

Proof of Travel

The employer needs to provide proof of travel to claim the travel allowance, such as travel tickets, boarding passes, etc.

Actual Expenses

According to the travel allowance rules, if the amount of travel allowance exceeds the actual expenses incurred by the employee during travel, the excess amount is liable for a tax deduction.

Tax Deducted at Source (TDS)

If the amount of travel allowance in salary exceeds the exemption limit, the excess amount is subject to TDS, at a rate of 5%.

Clubbing with Salary

The travel allowance is considered a part of the employee's salary and is subject to taxation accordingly.

Both employers and employees need to understand tax-related travel allowance rules. Employees must keep proper records of travel expenses and provide valid proof to claim the exemption. Employers should also ensure that they deduct TDS at the correct rate and report the travel allowance as a part of the employee's salary in their tax returns.

In conclusion

In conclusion, travel allowances are provided by employers to cover the expenses associated with work travel. Different types of travel allowances, such as fixed allowances, daily allowances, mileage allowances, and travel reimbursements, may be offered based on various factors. It is important for both employers and employees to understand the tax rules and regulations governing travel allowances, including exemption limits, proof of travel, taxation on excess amounts, TDS deductions, and the inclusion of travel allowances in the employee's salary. Compliance with these rules ensures proper documentation and accurate reporting of travel allowances for taxation purposes.

Frequently Asked Questions

1. is travel allowance fully exempted.

If the tax allowance amount in an employee’s CTC structure is less than ₹1,600, then the entire allowance would be tax-free. Anything above that is applicable for a standard tax deduction.

2. How do you use travel allowance?

Employees can use travel allowance by opting for road, rail, or air travel within the country.

3. Is travel allowance part of the salary?

Yes, an employer pays a travel allowance in salary to cover the employee's travel expenses. Travel allowance is part of an employee’s cost-to-company and can be claimed annually.

4. Who can claim a travel allowance?

According to the travel allowance rules, employees can claim the allowance to meet travel-related expenses. The eligibility for claiming travel allowance depends on the company's policies, the nature of the employer’s job, and more such factors.

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Travel allowance: A Comprehensive Guide for Employees

• Written by: Rinaily Bonifacio
• Last updated: 11 March 2024

This article will explain travel allowance, when and how you can use it, and tips for getting the most out of your expenses.

Table of contents

What is travel allowance?

How does business travel allowance usually cover, what is a flat travel allowance, what is the daily allowance, easy ways on how companies manage their procedures for business travel allowances, effective communication, how to manage business travel allowances.

Travel allowance is a type of compensation employers provide to cover employee travel expenses incurred when traveling for business purposes. It helps with employee travel costs, such as transportation, lodging, meals, and other incidentals while on the job. Depending on the company policy, travel allowance may be given in cash or as reimbursed expenses.

For example, some companies provide a fixed daily amount for meals and lodging that employees can use during their travels. Other companies cover expenses incurred by employees when they submit receipts after their trip has ended. This is known as per diem allowance or transport allowance.

Business travel allowance typically covers the cost of airfare, hotel accommodations, and meals. It may also include per diem allowances such as ground transportation, parking, and incidentals. The exact coverage will vary depending on the company's policies and the type of business trip.

A flat travel allowance is a set amount of money an employee provides for travel costs. The employee is responsible for managing the funds and ensuring they are used for the intended purpose. This allowance is typically used for short trips or employees who travel infrequently.

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A daily allowance, also known as a per diem, is a set amount of money provided to employees for money incurred daily while traveling for business purposes. It typically covers things such as

• Transportation
• And incidentals.

The allowance amount is usually based on the location and duration of the business trip and is intended to cover living costs for that specific location.

Daily allowances are provided in addition to other travel compensation types, such as lodging or airfare reimbursement. The amount and coverage of a daily budget will vary depending on the company's policies and the nature of the business travel.

Companies can manage their procedures for business travel allowances by establishing clear guidelines and policies. This should include information on who is eligible for the assistance, what travel costs are covered, and how to submit expense reports. Additionally, companies can use travel management software to track and approve payments and ensure company policy compliance.

It is also essential for companies to communicate effectively with employees about travel allowance policies so that they are aware of their rights and obligations. This can include providing training and support and regular updates on any policy changes.

By managing their procedures for business travel allowances in a clear and organized manner, companies can ensure that their employees have the resources they need to complete their business trips while also managing the company's expenses.

Another critical aspect of managing business travel allowances is to keep an eye on the per diem rates and lodging expenses. It is essential to ensure that these expenses are within the budget and are in line with the rates established by the General Services Administration (GSA). Companies should also consider implementing a system for meal allowance and car hire reimbursement, as well as for laundry services, parking fees, and other miscellaneous expenses.

To manage business travel allowances effectively, companies should establish clear guidelines for employees traveling within the continental United States and those traveling to foreign countries. This includes setting a budget for each travel and providing employees with the necessary forms for expense reporting and reimbursement.

In addition, companies can use data analysis to identify trends and patterns in travel expenses. This can help them make more informed decisions about travel policies and budgeting and potentially save money on future trips.

It's also important to consider the needs of business travelers and their families and to establish policies that support them. For example, companies may offer additional allowances for family members traveling with a business traveler or for international travel.

Overall, an efficient reimbursement system and clear travel policies can help ensure that employees are promptly reimbursed for their expenses and that the company's expenses are tracked and managed effectively. This can be a great way to manage business travel allowances and keep costs under control.

Written by:

Rinaily Bonifacio

Rinaily is a renowned expert in the field of human resources with years of industry experience. With a passion for writing high-quality HR content, Rinaily brings a unique perspective to the challenges and opportunities of the modern workplace. As an experienced HR professional and content writer, She has contributed to leading publications in the field of HR.

Please note that the information on our website is intended for general informational purposes and not as binding advice. The information on our website cannot be considered a substitute for legal and binding advice for any specific situation. While we strive to provide up-to-date and accurate information, we do not guarantee the accuracy, completeness and timeliness of the information on our website for any purpose. We are not liable for any damage or loss arising from the use of the information on our website.

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Detailed guide on travel expense reimbursement

Business travel expense reimbursement is an essential expense for any company. You must ensure that the reimbursement system of your company is automated and streamlined to deliver increased productivity and help save time for the employees to work on other human-centric tasks.

Manual travel expense reimbursements processing and reporting has numerous errors that, in turn, cost the company more hours spent on fixing the mistakes.

An automated system saves the company any extra effort or money spent on error correction, long reconciliation processes, and data management. A complete travel and expense automation system will help your company establish a streamlined travel process without having to worry about reimbursements.

What is travel expense reimbursement?

Travel expense reimbursement is the process of compensating your employees for all the business expenses made during any work trip. The employees are reimbursed for all the travel expenses that they have to make out of their pockets. These valid compensation expenses include travel tickets, meals, hotel reservations, and any purchases made for the clients. 

To get reimbursed, employees are supposed to collect all the physical receipts and any other documents as proof of the spending and submit those to the finance department.

Every company has its own reimbursement claim submission system. Once the employees give in claims, the finance department checks all the receipts with other documents and ensures that everything is in compliance with the company travel expense policy . According to that, the finance department approves or rejects the claims.

What is the purpose of the travel expense reimbursement process?

Travel expense reimbursement process is essential because business travel expenses can be heavy on the employees’ pockets. It is not the employee's obligation to utilize their personal funds to pay for the business trip. It is the responsibility of every organization to reimburse its employees for any out-of-pocket expense made for the business. 

If your company takes reimbursement seriously and timely completes the process, your employees will be happy to for in the company. Satisfied employees mean smooth business functioning.

 Along with this, reimbursements are categorized under business expenses that are viable as tax deductions. Plus, having a reimbursement process makes it easier for the finance department to settle all claims, and you get greater visibility into the expenses of the business.

What are the travel expenses that are reimbursable?

1. Transportation expenses

The first and essential travel expense, transportation cost, has to be reimbursed. All kinds of transport used on the business trip are supposed to be in the reimbursement claim. These include train or flight tickets, public transport in the city, car rental costs, or ride shares.

 Employees must have valid transport expense proof like ticket copy, payment receipts, etc., as proof of transaction.

2. Accommodation expenses

Business travel expense reimbursement also includes accommodation expenses. Hotel or any other accommodation place charges, valet or parking expenses, internet or sim fees, etc. You can always set expense limits so that your employees know what can be booked inside the budget. This help in sidestepping the problem of overspending. 

3. Business-related entertainment expenses

Another category considered under corporate travel expense reimbursement is business-related entertainment expenses. These are costs employees have to incur to keep the clients or potential clients entertained and engaged. This can be social events, concerts, dinner parties, etc.

Also, if the employee spends on food, drinks, and other refreshments for the clients, those are also reimbursed. 

4. Meal expenses

If the employees buy meals for themselves or any refreshments, those are also supposed to be reimbursed by the company. These meals can be for themselves or for the clients. Daily meals can be counted under the per-diem expense of the employee as well. The daily allowance given to a travelling employee is called the per-diem expense. 

5. Incidental expenses

Incidental expenses are those minimal costs incurred apart from the major costs of traveling. Room service charges, tips to hotel staff or chauffeur, customer gifts, laundry service charges, etc. These expenses can be reimbursed after the trip. 

Experience hassle-free reimbursements

What is a travel expense reimbursement policy.

In general, a travel expense reimbursement policy is a document that has all the details and guidelines related to your business travel expenses reimbursement.

It should have enough information regarding everything starting from pre-travel planning to reimbursable amount settlements. Typically, you would also want to include details such as what types of travel expenses are and are not considered reimbursable.

Any hard limits you have on the amount that your company will cover should be stated as well. Procedures such as expense reports and approvals will also make it onto your travel expense reimbursement policy.

How to create a successful travel expense reimbursement policy?

There’s no reason to confuse your employees, especially when it comes to a policy that they’ll have to reference a lot.

 Having a simple travel expense reimbursement policy that is easily understandable by all employees will streamline all processes involved.

2. Comprehensible

Your policy for travel expenses reimbursement is no good if your employees have no clue how to follow it. You want your travel expense reimbursement policy to have plenty of details about the different steps involved while keeping it user-friendly.

3. Structured

Considering that there are a lot of details on travel reimbursement that you want to include, it’s important to maintain your policy and keep it neatly structured. This way, it’s easier to make changes and adjustments if necessary.

What to include in a travel expense reimbursement policy?

1. expense categories.

As mentioned, there are different types of expenses that will be incurred during business trips. This includes transportation expenses, lodging expenses, client entertainment expenses, and many more.

You’ll want to break down which expenses fall into what category in your travel expense reimbursement policy to provide clarity to your employees.

2. List of expenses that are reimbursable

Make a list of what expenses are applicable for travel reimbursement. While the details may differ from company to company, reimbursable expenses typically include transportation, accommodation, meals, client gifts, visa charges, and other business-related expenses.

Make sure that your employees know who the right person to ask is for expenses that they’re unsure about.

3. List of expenses that are non-reimbursable

Any personal expenses incurred by your employees during the duration of their trip are not reimbursable. This means that should an employee choose to do any personal shopping, those expenses will not be allowed for travel reimbursement.

Any travel upgrades your employees choose to get that are outside of the initial travel budget will also not be reimbursed.

4. Taxes on expenses and reimbursements

You want to be sure that you comply with tax regulations regarding your travel expenses and reimbursements. Note that employee allowances and reimbursements are two separate things.

For tax purposes, ensure you are aware of the differences and what your obligations are for paying travel expenses reimbursement specifically.

5. Budget for each expense category

To make sure that you don’t get an inflated number when your employees submit their reimbursement claims at the end of each business trip, you want to create a daily budget for each expense category.

This daily allowance is called per diem. Specify what the per diem rates are to encourage employees to stay within budget.

6. Specify the receipt and documentation requirements

Every company will have its own reimbursement claim requirements. While some might only require an upload of the receipt, others might want more details and supporting documents.

Make sure that when you create your travel expense reimbursement policy, you’re clear on what your reimburses need to get the travel expenses reimbursement claims processed.

7. Reimbursement plan

To make sure that everyone involved in the travel reimbursement process is on the same page, you want to include a section about how you plan to do reimbursements.

This makes sure that everyone’s expectations are aligned with one another. You also want to outline what are the responsibilities of everyone involved and what is involved.

8. Fraud and policy compliance

At the end of the day, a travel expense reimbursement policy is written to have everyone in your company adhere to it to ensure compliance and develop standardized processes.

It’s important that you outline a section about policy compliance and what the consequences are for deviating from the policy or fraud attempts.

Reimbursement made simple

What are the steps of a travel reimbursement process.

1. Pre-travel approval

Before travel expense reimbursement comes pre-travel approval, employees are supposed to submit a request and all related documents for the trip. This request mentions all the details of the travel, like place, time, dates, purpose, expense budget requirement, etc.

 It is essential that your company has a requirest template or set system through which the employees put in their travel requests and get approvals. 

2. Expense guidelines and policies

Once the employee travel request is submitted, the company is supposed to process the further details. You have to give the employees expense guidelines, a list of all reimbursable expenses, clarity on reimbursement policies, and an approved expense budget. This is done to ensure that the employees have a clear understanding of everything that is allowed and the expense policy limits. 

3. Expense documentation

While the employees are on a business trip, it is essential that they document every expense. Receipts of meals and drinks, client entertainment activity receipts, travel tickets, hotel reservation and stay documents, etc. All these have to be collected and stored. These receipts and documents are then attached while claiming reimbursement. 

4. Expense report preparation

When the employees come back from the business trip, they are supposed to prepare a report of all the expenses incurred during the trip. This report has to include details of all the expenses, like category, amount, merchant, etc.

Along with this report, the receipt of the purchases is attached. The finance department collects these reports and calculates the total reimbursements. 

5. Review and approval

The finance department scans every detail and matches the claim amount to the original receipt attached. This is done for extra ensure that all expenses are legit and everything is in compliance with the company expense policy.

Plus, sometimes, employees slip extra expenses into the expense report . The finance team has to make sure that every expense has a document proof of it. Once checked, the reimbursement is approved.

6. Reimbursement processing

Once all the details are sorted and the reimbursement claim is approved, the next step is to process the amount. The reimbursement amount is usually given to the employees along with their salaries. 

7. Reconciliation and reporting

After everything is done, travel expense reimbursement is added to the accounting sheet. All the details are rechecked, and reconciliation is initiated. Every expense is recorded, and then all necessary data is put into reports to maintain a database.

Suggested read: What is account reconciliation, types, benefits and procedure

How to streamline your travel reimbursement process?

Have a well-defined reimbursement policy.

Streamlining your travel reimbursement process starts by preparing a reimbursement policy. This must be easy to understand and should be distributed amongst all employees.

A comprehensive business travel expenses reimbursement policy must include things like reimbursable and non-reimbursable expenses, dates and guidelines to submit expense claims, deadlines, etc.

Along with this, mention the rules for pre-approvals and how the claim amount will be transferred. A clear understanding comes with a comprehensive reimbursement policy.

Digitize expense management

Another effective technique to streamline your travel reimbursement process is to digitize the travel and expense management process . A centralized system can help you track and process all travel expenses. The system must allow your employees to easily make reimbursement claims, make submissions, and track the process.

For example, these systems give employees the facility to click a picture of their receipts and upload it through a mobile application instantly. Plus, a digitized system also keeps a record of all the activity and data, and this database can be accessed easily.

Timely submissions of expense reports

It is advised to set reimbursement submission deadlines. Encourage your employees to submit all their claims on time so that the travel expense reimbursement process can be completed quickly.

If they delay their submission, the process will also be delayed, and ultimately employees won’t get their reimbursement amount on time. Put out reminders and be strict with your employees to complete the process on their end within the given time. 

Provide training and support to employees

Your employees will not just magically get acquainted with the process and guidelines. It is important to set up training sessions. These training sessions should educate the employees on the company’s expense policies, how to make expenses when on a trip, and how to file for reimbursements the right way.

Along with this, also put together a support team to help the employees with any kind of queries, problems, and issues while traveling or filing the claim. 

Streamline review and approval workflows

Employees have to run around to get approvals, and the finance department is behind the employees to submit their claims. This is a never-ending cycle. Instead, you should streamline the approval workflows.

Using an expense management system can automatically check the receipts and claims and flag expenses if suspicious. Along with this, these systems allow you to set a chain of approvers who will receive the summary of the claim and, with just one claim, can approve the reimbursement easily.

Conduct regular audits

Last but not least is to conduct regular audits. It is crucial to always be on of all the expenses and have a clear understanding of all the money being spent on reimbursements.

Ensure to keep a tab on all the processes and check if everything is running smoothly.

 Auditing regularly helps you to have a clear understanding of the business reimbursement spends and provides data to make any changes in the policies and process for better-streamlined expense management. 

Take control of your expenses

Benefits of streamlining travel reimbursement process using an automated system.

It is not a hidden fact that now with easy digitization and automation in the picture, manual processes can be time-consuming and extra effort-taking in comparison to automated systems.

Hence, why stay behind?

An automated travel expenses management system can help you save a lot of time and complete the same processes that took humongous efforts in just a few minutes. Along with this, the system quickly checks every detail and flags any unusual activity or expenses. 

A travel expenses management system is easy to use and gets the job done faster. Reconciliation with the accounting books becomes a piece of cake. Moreover, managers can access all expense data in real-time, and the finance team can easily work around the instantly available information.

 Ultimately, with everything available and done with just a few clicks, analysis and reporting also becomes effortless. 

Benefits for the employer

● Accurate financial records

Manual business travel expense reimbursement process is highly prone to errors. There are various mistakes the employees, the managers, and the finance team can make while submitting, checking, and reconciling travel expenses. However, an automated system takes over the whole process. Your employees just have to upload the snapshot of their expense receipts, and the rest will be done by the system automatically. The managers also just have to approve or reject the reimbursement request summary shown on their screens. 

● Enhanced expense reporting and analytics

How much time does your whole team take to compile all expense data, categorize and sort it to make a meaningful report? Probably days! Just imagine all required data being available with just a few clicks. This is what expense reporting automation does for you. It tracks, records, and collects all expense data in real-time and instantly organizes it into meaningful reports that can be accessed anytime. Using this, you can implement changes and make other decisions rather quickly. 

Master the art of expense tracking . Delve into our insightful article to learn effective strategies for tracking expenses, and gaining financial visibility.

● Help eliminate paperwork

It takes tons of paperwork and approvals to get just one business trip approved, managed, and reconciled. Employees and managers both have to go through huge lumps of documents to record everything and to ensure that the travel reimbursement process is completed with accuracy. But why not eliminate all this hassle and automate the travel expenses management process? It automatically processes the data and reports, and the managers just have to click approve or reject on their screen, making the process easier and quicker. 

● Ensure greater policy compliance

Policy compliance is the most difficult to maintain in an expense reimbursement process. However, automation solves this problem also. Any expense claim that is not in compliance with the company policies and rules will automatically be rejected. The claim will not go further for reimbursement processing if the expense amount or category or any other requirements do not match the company policy. Hence you no longer have to worry about expense fraud! 

● Time efficiency and cost savings

The ultimate motive for getting travel expenses management automation is to help your company save time and money. All those hours spent on making expense reports, filing reimbursement claims, checking all the paperwork, getting approvals, and reconciling with the accounting books can be reduced to just a few minutes with automation. Plus, all the extra costs spent on error correction and overtime for completing the process can be eliminated with automation. 

Benefits for the employees

● Increased trust and satisfaction

When your employees are reimbursed quickly, and the process is easy and convenient; they will build a sense of trust and satisfaction towards the institution. This convenience and ease can only come through the automation of the travel expenses reimbursement process. Employees just have to upload snapshots of their receipts, and the system will take care of the rest. 

● Faster reimbursement (Lowers the personal burden)

Again, the automation system will complete the reimbursement process faster than the manual processing time, so your employees will not have to worry about being short on personal finances or will not have to bear any burden of their personal funds. Faster reimbursements keep your employees happy. 

● Easy expense claims

With an expense management automation system, your employees can easily raise reimbursement claims , track the process, check the status of their claims, and finally be updated on when their reimbursement is approved and transferred. Along with this, the system will allow them to follow a clear-cut process without much hassle and documentation requirements. 

● Stress-free travel experience

Once you have proper reimbursement and travel expense management structure in place, your employees will not have to worry about reimbursements. Stress-free travel experience for your employees. A proper system assures that if the employees provide evidence for all expenses and file their claims correctly, they will be compensated no matter what. 

Key features to have in an automated reimbursement system

User-friendly interface.

What use is an automation system if it takes weeks to learn how to use it and has a complicated user interface? Instead, get automation software that is easy to use.

 Employees and managers both should be able to quickly grasp the working of it and should be able to use it to the fullest. All features must be effortlessly accessible on the dashboard so that skimming through for information doesn’t take long.

Mobile accessibility

The automation software you choose to integrate with your existing ERP system must have a mobile application version. While traveling, employees might not necessarily have their laptops or access to a PC.

So, a mobile version is convenient for uploading expense receipts instantly from anywhere, and also managers can approve expense claims easily. 

Receipt capture and storage

Another important feature necessary in an automated corporate travel expense reimbursement system is OCR technology. Optical Character Recognition technology captures essential characters from the uploaded receipt. These characters are amount, spend category, date, time, etc.

 Once captured, the system updates all that information into a centric database. This database is updated with new expense information in real-time. 

Automated calculation of reimbursements

Automation systems also offer the feature of automated calculation of reimbursements. As the system anyways does the whole reimbursement process, the end part calculator is not a difficult thing.

All expense claims are anyways recorded in the accounting sheets, everything is added, and a total can be derived just as easily.

Expense categorization

Expense management systems also provide businesses with the feature of automatic expense categorization. This means that as and when an expense is made, the system will automatically capture it and put it under the right expense category in the database and the accounting sheets.

Auto-categorization cancels out all the tedious labor put into just sorting and entering data. 

Approval workflows

Automation systems help businesses set up a smooth approval workflow. You can set multi-level approvers so that the reimbursement claim is checked 3-4 times by managers and other authorities before being passed.

This means that the expense claim request will be shown to the designated approvers of level 1, then level 2, and then level 3. Employees don’t have to go behind different people all day long to get the reports and claims approved.

Accounting system integration

One of the most important features to look for in an expense management automation system is integration with accounting software. Your expense management system must be flexible enough to integrate directly with your accounting software.

All expenses, when tracked in real-time, should also be entered into the accounting books in real-time. 

Policy compliance checks

Another must-have feature in a travel expenses reimbursement automation system is a policy compliance check. The software should not only process all the compensation claims but also should be able to flag and stop any claim that is not in compliance with the company policies and rules.

 You can enter all the required policy information in the system so that it can check the legitimacy of every expense against it. 

5 best travel reimbursement software for businesses

As an all-in-one expense management software , you can manage all business expenses with Volopay, including employee reimbursements. You can create expense categories for business travel for your own convenience.

Employees will then be able to file reimbursement claims from anywhere through the use of a mobile app in just a few clicks.

2. Zoho Expense

With Zoho Expense, you can make and manage online travel bookings. You can also manage offline travel-related needs, enabling you to make itineraries and travel profiles for smoother business travel.

 This way, tracking any expenses made during business trips will be simple. Easily pinpoint which travel expenses were made out of pocket and need to be reimbursed.

3. SAP Concur

SAP Concur offers a way to accurately track and report your business travel expenses hassle-free. Employees on business trips can snap pictures of expense receipts on the go, allowing you to keep all your travel expenses reimbursement data in one place.

 The reimbursement process can happen much faster when everything is easily accessible.

4. TravelPerk

TravelPerk is a travel management platform that helps you manage business trips and costs. You can collect all travel invoices through TravelPerk and employees won’t have to manually do expense reports.

 The platform allows you to view one invoice with all the details at the end of each trip, eliminating the need for paper travel reimbursement documents.

Fyle makes expense reporting stress-free for employees. Expense reports can be done at any time from anywhere with Fyle and will be reflected directly on the platform.

Every reimbursable expense is recorded on a centralized dashboard and can be filtered and viewed to make the travel reimbursement process go smoother.

Streamline your travel expense reimbursement process with Volopay

It is not impossible to find all the above-mentioned features in one platform. Introducing to you — Volopay! An all-in-one expenses management system created to help businesses save time and money that is normally invested in manually managing expenses and reports. 

With respect to travel expense reimbursement, Volopay gives ti customers the facility to set up a customized reimbursement process. With Volopay, you can set up multi-level approvers, get instant approval or rejection, OCR to recognize receipt characters, a mobile app for anywhere access, real-time expense tracking, and much more.

Optimize your expense management

Faqs on travel reimbursement.

For employees, reimbursements are treated are non-taxable income, and for the company itself, reimbursement expenses are tax deductible. 

An example of travel expense reimbursement is hotel reservations. The hotel your employees stay in during the business trip, the charges of that are reimbursable. 

An expense reimbursement policy is a set of rules and guidelines that are put in place to establish an expense structure and to educate the employees on how and what expenses are compensated. 

There is no period of time for reimbursements. Depending on the complexity of the company workflow, it can take anywhere between days to months. 

Travel expenses are broadly classified as reimbursable and non-reimbursable expenses.

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• Per Diem Lookup

To eliminate the confusion caused by a duplicate regulation, we discontinued hosting the FTR. Follow the link below to view the official copy.

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The Federal Travel Regulation summarizes the travel and relocation policy for all federal civilian employees and others authorized to travel at the government’s expense. Federal employees and agencies may use the FTR as a reference to ensure official travel and relocation is conducted in a responsible and cost effective manner.

Download the FTR (41 CFR) [PDF]

Last annual edition updated July 1, 2021. Prior years may be found at Code of Federal Regulations (Annual Edition) . Contents may be out of date. Refer to eCFR.gov for the most up-to-date regulation information.

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PER DIEM LOOK-UP

1 choose a location.

Error, The Per Diem API is not responding. Please try again later.

No results could be found for the location you've entered.

Rates for Alaska, Hawaii, U.S. Territories and Possessions are set by the Department of Defense .

Rates for foreign countries are set by the State Department .

2 Choose a date

Rates are available between 10/1/2021 and 09/30/2024.

The End Date of your trip can not occur before the Start Date.

Traveler reimbursement is based on the location of the work activities and not the accommodations, unless lodging is not available at the work activity, then the agency may authorize the rate where lodging is obtained.

Unless otherwise specified, the per diem locality is defined as "all locations within, or entirely surrounded by, the corporate limits of the key city, including independent entities located within those boundaries."

Per diem localities with county definitions shall include "all locations within, or entirely surrounded by, the corporate limits of the key city as well as the boundaries of the listed counties, including independent entities located within the boundaries of the key city and the listed counties (unless otherwise listed separately)."

When a military installation or Government - related facility(whether or not specifically named) is located partially within more than one city or county boundary, the applicable per diem rate for the entire installation or facility is the higher of the rates which apply to the cities and / or counties, even though part(s) of such activities may be located outside the defined per diem locality.

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Biden-Harris Administration Announces Final Rule Requiring Automatic Refunds of Airline Tickets and Ancillary Service Fees

Rule makes it easy to get money back for cancelled or significantly changed flights, significantly delayed checked bags, and additional services not provided  

WASHINGTON – The Biden-Harris Administration today announced that the U.S. Department of Transportation (DOT) has issued a final rule that requires airlines to promptly provide passengers with automatic cash refunds when owed. The new rule makes it easy for passengers to obtain refunds when airlines cancel or significantly change their flights, significantly delay their checked bags, or fail to provide the extra services they purchased.

“Passengers deserve to get their money back when an airline owes them - without headaches or haggling,” said U.S. Transportation Secretary Pete Buttigieg . “Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”  

The final rule creates certainty for consumers by defining the specific circumstances in which airlines must provide refunds. Prior to this rule, airlines were permitted to set their own standards for what kind of flight changes warranted a refund. As a result, refund policies differed from airline to airline, which made it difficult for passengers to know or assert their refund rights. DOT also received complaints of some airlines revising and applying less consumer-friendly refund policies during spikes in flight cancellations and changes. 

Under the rule, passengers are entitled to a refund for:

• Canceled or significantly changed flights: Passengers will be entitled to a refund if their flight is canceled or significantly changed, and they do not accept alternative transportation or travel credits offered. For the first time, the rule defines “significant change.” Significant changes to a flight include departure or arrival times that are more than 3 hours domestically and 6 hours internationally; departures or arrivals from a different airport; increases in the number of connections; instances where passengers are downgraded to a lower class of service; or connections at different airports or flights on different planes that are less accessible or accommodating to a person with a disability.  
• Significantly delayed baggage return: Passengers who file a mishandled baggage report will be entitled to a refund of their checked bag fee if it is not delivered within 12 hours of their domestic flight arriving at the gate, or 15-30 hours of their international flight arriving at the gate, depending on the length of the flight.  
• Extra services not provided: Passengers will be entitled to a refund for the fee they paid for an extra service — such as Wi-Fi, seat selection, or inflight entertainment — if an airline fails to provide this service.

DOT’s final rule also makes it simple and straightforward for passengers to receive the money they are owed. Without this rule, consumers have to navigate a patchwork of cumbersome processes to request and receive a refund — searching through airline websites to figure out how make the request, filling out extra “digital paperwork,” or at times waiting for hours on the phone. In addition, passengers would receive a travel credit or voucher by default from some airlines instead of getting their money back, so they could not use their refund to rebook on another airline when their flight was changed or cancelled without navigating a cumbersome request process.  

The final rule improves the passenger experience by requiring refunds to be:

• Automatic: Airlines must automatically issue refunds without passengers having to explicitly request them or jump through hoops.   
• Prompt: Airlines and ticket agents must issue refunds within seven business days of refunds becoming due for credit card purchases and 20 calendar days for other payment methods.  
• Cash or original form of payment: Airlines and ticket agents must provide refunds in cash or whatever original payment method the individual used to make the purchase, such as credit card or airline miles. Airlines may not substitute vouchers, travel credits, or other forms of compensation unless the passenger affirmatively chooses to accept alternative compensation.    
• Full amount: Airlines and ticket agents must provide full refunds of the ticket purchase price, minus the value of any portion of transportation already used. The refunds must include all government-imposed taxes and fees and airline-imposed fees, regardless of whether the taxes or fees are refundable to airlines.

The final rule also requires airlines to provide prompt notifications to consumers affected by a cancelled or significantly changed flight of their right to a refund of the ticket and extra service fees, as well as any related policies.

In addition, in instances where consumers are restricted by a government or advised by a medical professional not to travel to, from, or within the United States due to a serious communicable disease, the final rule requires that airlines must provide travel credits or vouchers. Consumers may be required to provide documentary evidence to support their request. Travel vouchers or credits provided by airlines must be transferrable and valid for at least five years from the date of issuance.

The Department received a significant number of complaints against airlines and ticket agents for refusing to provide a refund or for delaying processing of refunds during and after the COVID-19 pandemic. At the height of the pandemic in 2020, refund complaints peaked at 87 percent of all air travel service complaints received by DOT. Refund problems continue to make up a substantial share of the complaints that DOT receives.

DOT’s Historic Record of Consumer Protection Under the Biden-Harris Administration

Under the Biden-Harris Administration and Secretary Buttigieg, DOT has advanced the largest expansion of airline passenger rights, issued the biggest fines against airlines for failing consumers, and returned more money to passengers in refunds and reimbursements than ever before in the Department’s history.

• Thanks to pressure from Secretary Buttigieg and DOT’s flightrights.gov dashboard, all 10 major U.S. airlines guarantee free rebooking and meals, and nine guarantee hotel accommodations when an airline issue causes a significant delay or cancellation. These are new commitments the airlines added to their customer service plans that DOT can legally ensure they adhere to and are displayed on flightrights.gov .  
• Since President Biden took office, DOT has helped return more than $3 billion in refunds and reimbursements owed to airline passengers – including over $600 million to passengers affected by the Southwest Airlines holiday meltdown in 2022.   
• Under Secretary Buttigieg, DOT has issued over $164 million in penalties against airlines for consumer protection violations. Between 1996 and 2020, DOT collectively issued less than $71 million in penalties against airlines for consumer protection violations.  
• DOT recently launched a new partnership with a bipartisan group of state attorneys general to fast-track the review of consumer complaints, hold airlines accountable, and protect the rights of the traveling public.  
• In 2023, the flight cancellation rate in the U.S. was a record low at under 1.2% — the lowest rate of flight cancellations in over 10 years despite a record amount of air travel.  
• DOT is undertaking its first ever industry-wide review of airline privacy practices and its first review of airline loyalty programs.

In addition to finalizing the rules to require automatic refunds and protect against surprise fees, DOT is also pursuing rulemakings that would:

• Propose to ban family seating junk fees and guarantee that parents can sit with their children for no extra charge when they fly. Before President Biden and Secretary Buttigieg pressed airlines last year, no airline committed to guaranteeing fee-free family seating. Now, four airlines guarantee fee-free family seating, and the Department is working on its family seating junk fee ban proposal.  
• Propose to make passenger compensation and amenities mandatory so that travelers are taken care of when airlines cause flight delays or cancellations.   
• Expand the rights for passengers who use wheelchairs and ensure that they can travel safely and with dignity . The comment period on this proposed rule closes on May 13, 2024.

The final rule on refunds can be found at https://www.transportation.gov/airconsumer/latest-news and at regulations.gov , docket number DOT-OST-2022-0089. There are different implementation periods in this final rule ranging from six months for airlines to provide automatic refunds when owed to 12 months for airlines to provide transferable travel vouchers or credits when consumers are unable to travel for reasons related to a serious communicable disease. 

Information about airline passenger rights, as well as DOT’s rules, guidance and orders, can be found at   https://www.transportation.gov/airconsumer .

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Automatic Refunds and No More Hidden Fees: D.O.T. Sets New Rules for Airlines

The Transportation Department issued new requirements on refunds when flights are canceled or delayed and on revealing “junk” fees before booking. Here’s what passengers can expect.

By Christine Chung

The Transportation Department on Wednesday announced new rules taking aim at two of the most difficult and annoying issues in air travel: obtaining refunds and encountering surprise fees late in the booking process.

“Passengers deserve to know upfront what costs they are facing and should get their money back when an airline owes them — without having to ask,” said U.S. Transportation Secretary Pete Buttigieg in a statement, adding that the changes would not only save passengers “time and money,” but also prevent headaches.

The department’s new rules, Mr. Buttigieg said, will hold airlines to clear and consistent standards when they cancel, delay or substantially change flights, and require automatic refunds to be issued within weeks. They will also require them to reveal all fees before a ticket is purchased.

Airlines for America , a trade group representing the country’s largest air carriers, said in a statement that its airlines “abide by and frequently exceed” D.O.T. consumer protection regulations.

Passenger advocates welcomed the new steps.

Tomasz Pawliszyn, the chief executive of AirHelp, a Berlin-based company that assists passengers with airline claims, called it a “massive step forward and huge improvement in consumer rights and protection” that brings the United States closer to global standards in passenger rights.

Here’s what we know about the D.O.T.’s new rules, which will begin to go into effect in October.

There’s now one definition for a “significant” delay.

Until now, airlines have been allowed to set their own definition for a “significant” delay and compensation has varied by carrier . Now, according to the D.O.T., there will be one standard: when departure or arrival is delayed by three hours for domestic flights and six hours for international flights.

Passengers will get prompt refunds for cancellations or significant changes for flights and delayed bags, for any reason.

When things go wrong, getting compensation from an airline has often required establishing a cumbersome paper trail or spending untold hours on the phone. Under the new rules, refunds will be automatic, without passengers having to request them. Refunds will be made in full, excepting the value of any transportation already used. Airlines and ticket agents must provide refunds in the original form of payment, whether by cash, credit card or airline miles. Refunds are due within seven days for credit card purchases and within 20 days for other payments.

Passengers with other flight disruptions, such as being downgraded to a lower service class, are also entitled to refunds.

The list of significant changes for which passengers can get their money back also includes: departure or arrival from an airport different from the one booked; connections at different airports or flights on planes that are less accessible to a person with a disability; an increase in the number of scheduled connections. Also, passengers who pay for services like Wi-Fi or seat selection that are then unavailable will be refunded any fees.

Airlines must give travel vouchers or credits to ticketed passengers unable to fly because of government restrictions or a doctor’s orders.

The vouchers or credits will be transferable and can be used for at least five years after the date they were issued.

Fees for checked baggage and modifying a reservation must be disclosed upfront.

Airlines and ticket agents are now required to display any extra fees for things like checking bags or seat selection clearly and individually before a ticket purchase. They will also need to outline the airline’s policies on baggage, cancellations and changing flights before a customer purchases a ticket.

The rules, which apply to all flights on domestic airlines and flights to and from the United States operated by foreign airlines, have varying start dates.

For example, automatic refunds must be instituted by the airlines within six months. But carriers have a year before they’re required to issue travel vouchers and credits for passengers advised by a medical professional not to fly.

Follow New York Times Travel on Instagram and sign up for our weekly Travel Dispatch newsletter to get expert tips on traveling smarter and inspiration for your next vacation. Dreaming up a future getaway or just armchair traveling? Check out our 52 Places to Go in 2024 .

Christine Chung is a Times reporter covering airlines and consumer travel. More about Christine Chung

Open Up Your World

Considering a trip, or just some armchair traveling here are some ideas..

52 Places:  Why do we travel? For food, culture, adventure, natural beauty? Our 2024 list has all those elements, and more .

Mumbai:  Spend 36 hours in this fast-changing Indian city  by exploring ancient caves, catching a concert in a former textile mill and feasting on mangoes.

Kyoto:  The Japanese city’s dry gardens offer spots for quiet contemplation  in an increasingly overtouristed destination.

Iceland:  The country markets itself as a destination to see the northern lights. But they can be elusive, as one writer recently found .

Texas:  Canoeing the Rio Grande near Big Bend National Park can be magical. But as the river dries, it’s getting harder to find where a boat will actually float .

Enough with airline hidden fees: DOT rules take aim at 'corporate rip-offs'

The Department of Transportation announced new rules on Wednesday to better protect airline passengers against “costly surprise airline fees,” the agency said.

As part of the Biden-Harris Administration’s efforts to crack down on “corporate rip-offs,” two new air travel rules were finalized. The rules mandate airlines to pay full refunds in a timely and straightforward manner and ensure transparency regarding fees associated with air travel.

The new regulations are expected to save consumers over half a billion dollars each year in hidden junk fees, the DOT said. 

“Passengers deserve to know upfront what costs they are facing and should get their money back when an airline owes them – without having to ask,” Secretary of Transportation Pete Buttigieg said in a statement. 

“Today’s announcements will require airlines to both provide passengers better information about costs before ticket purchase, and promptly provide cash refunds to passengers when they are owed – not only saving passengers time and money, but also preventing headaches.”

Learn more: Best travel insurance

What to know about the newly finalized rules for airline passengers:

What are the new rules from the DOT and how do they impact passengers?

The first new regulation will simplify the process for airline passengers to get what they’re owed by requiring airlines to give automatic cash refunds. Passengers can get these refunds when their flights are “cancelled or significantly changed, their checked bags are significantly delayed, or the ancillary services, like Wi-Fi, they purchased are not provided,” the announcement said. 

The second will require airlines and ticket agents to be upfront about any hidden fees, such as checking a bag or changing a flight, to help “consumers avoid unneeded or unexpected charges that can quickly increase and add significant cost to what may, at first, look like a cheap ticket.” Airline fees, increasingly common for airlines to boost their profit, have grown “confusing” for passengers.

Both rules will go into effect in about six months, or around the end of October, the agency said.

Making the skies more accessible: This proposal would help the DOT 'more easily penalize airlines' that damage wheelchairs

How will the new rules make getting refunds from airlines easier? 

Getting a refund from airlines is a long-winded and often complicated process. Sometimes, passengers end up getting a travel credit or voucher instead of an actual reimbursement or just a partial refund. Under the new regulation, refunds will be much more straightforward. 

Airlines must promptly provide automatic refunds without passengers explicitly requesting them, and the refunds must be issued in the original payment method used to make the purchase.  

How fast will the refund get to me?

Airlines will have seven business days to make full refunds for credit card purchases and 20 calendar days for other payment methods. 

How else is the DOT cracking down on hidden airline junk fees? 

It can be tricky to know exactly how much your final airline ticket will cost due to hidden fees. What may look like a low price at first can quickly add up. Airlines will now have to disclose any baggage, change and cancellation fees and policies before purchases are made – and it has to be clear and upfront, not hidden behind a hyperlink. Airlines will also need to be transparent about weight and dimension limitations. Third-party websites such as Expedia or Booking.com will also be required to display this information. 

These days, it’s common for people to pay for seat selection, especially for the lowest price fares, but carriers will now need to inform consumers that seats are guaranteed and it’s unnecessary to pay for one.

The DOT is also banning airlines from using bait-and-switch tactics, in which an airline advertises a discounted fare that doesn’t include mandatory fees that drive the ticket price up. 

Kathleen Wong is a travel reporter for USA TODAY based in Hawaii. You can reach her at [email protected] .

Airlines must cough up cancellation cash and can no longer hide fees under new federal rule

A federal rule announced Wednesday will require airlines to quickly give cash refunds — without lengthy arguments — to passengers whose flights have been canceled or seriously delayed, the Biden administration said.

“Passengers deserve to get their money back when an airline owes them — without headaches or haggling,” Transportation Secretary Pete Buttigieg said in a statement.

The rule from the Transportation Department says passengers who decline other reimbursement like travel credits are to get cash refunds.

It applies when a flight is canceled or has a “significant change,” the administration said.A “significant change” includes when departure or arrival times are three or more hours different from the scheduled times for domestic flights or six hours for international flights, and when the airport is changed or connections are added, it said.

Passengers are also to get refunds when their baggage is 12 hours late in delivery for domestic flights.

The new rule comes after promises to hold airlines accountable after major disruptions that made travel hell for passengers, including the 2022 Southwest Airlines meltdown , which resulted in almost 17,000 significantly delayed or canceled flights and a missing baggage nightmare.

The Transportation Department said that the new rule means refunds are automatic and that "airlines must automatically issue refunds without passengers having to explicitly request them or jump through hoops."

Also announced Wednesday was a rule requiring airlines to more clearly disclose so-called junk fees upfront, such as surprise baggage or other fees, the department said.

It said that rule is expected to save fliers around $500 million a year.

The surprise fees are used so tickets look cheaper than they really are, and then fliers get the unwelcome surprise of fees on checked bags, carry-on bags or reservation changes — or even discounts that are advertised but apply to only part of the ticket price, officials said.

Airlines will also have to tell fliers clearly that their seats are guaranteed and that they don't have to pay extra to ensure they have seats for flights, according to the Transportation Department.

Airlines for America, an industry trade group, said that its member airlines “offer transparency and vast choice to consumers from first search to touchdown” and that they do offer cash refunds.

The 11 largest U.S. airlines returned $10.9 billion in cash refunds last year, an increase over $7.5 billion in 2019 but slightly down from $11.2 billion in 2022, the group said.

“U.S. airlines are providing more options and better services while ticket prices, including ancillary revenues, are at historic lows,” Airlines for America said.

Left out of the federal changes announced Wednesday are those involving "family seating fees," but the Transportation Department said in a statement that "DOT is planning to propose a separate rule that bans airlines from charging these junk fees."

Travelers have complained to the Transportation Department that children weren’t seated next to accompanying adults, including in some cases young children, department officials said last year.

Fees on bags specifically have made up an increasing amount of airline revenues, the Transportation Department said Wednesday in announcing the new rules.

A Transportation Department analysis found that airline revenue from baggage fees increased 30% from 2018 to 2022, while operating revenue — which is from the flights themselves — increased by only half that amount, the department said.

Jay Blackman is an NBC News producer covering such areas as transportation, space, medical and consumer issues.

Phil Helsel is a reporter for NBC News.

What is TSA PreCheck? Plus, how to get it nearly free

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TSA PreCheck provides expedited screening when you check in at the airport. Passengers who have TSA PreCheck clearance on their boarding pass can go through a dedicated line at U.S. airports for faster security clearance. We’ll explain everything you need to know about this Trusted Traveler program and how it can make your pre-flight experience better.

What does TSA PreCheck do?

TSA PreCheck is a government-run program that provides expedited screening at airport security checkpoints for travelers flying from U.S. airports. With TSA PreCheck, you’ll use a separate line at the airport for screening and you won’t have to remove your shoes or belt, or take your laptop or other electronic devices out of your carry-on. According to the TSA, 99% of passengers who use the TSA PreCheck lines wait less than 10 minutes to complete the screening process.

How to get TSA PreCheck

TSA Precheck is a Trusted Traveler program run by the Department of Homeland Security’s Transportation Security Administration. Membership in this program is limited to U.S. citizens, U.S. nationals and legal permanent residents. For those who fit the residency criteria, there are a few steps to apply for TSA PreCheck:

• Go to the Trusted Traveler website and select the Get Started button under TSA PreCheck.
• Idemia , which charges $78 to enroll, $70 to renew online and has over 610 enrollment centers, or 
• Telos , which charges $85 to enroll and $70 to renew online and has 28 enrollment centers. 
• Make an appointment. At the appointment, which TSA says should take about 10 minutes, you’ll be asked to provide the appropriate identification , have your photo taken and be fingerprinted.
• Pay the application fee. Some travel credit cards offer an application fee reimbursement if you charge it to the card. More on that below.
• Wait to receive your Known Traveler Number (KTN) from your provider. TSA says this usually takes about three to five days, although it could take up to 60 days. You can get your application status by email, phone, text, or by checking online through the enrollment provider you applied with.
• Once you have a KTN, you can add it to any frequent flyer programs you participate in and also enter it on any flight reservations you make to have TSA PreCheck marked on your boarding pass for security. Each time you book a ticket you’ll need to enter your KTN on your reservation if it isn’t already saved with the airline to take advantage of the TSA PreCheck line. If your boarding pass does not show a TSA PreCheck indicator you will not be able to use the PreCheck lane to go through security.

What’s the difference between TSA PreCheck and Global Entry ?

TSA PreCheck is run by the Transportation Security Administration and expedites the security line process when departing from U.S. airports. 

Global Entry is run by the U.S. Customs and Border Patrol and allows expedited entry into the U.S. from international locations. However, TSA PreCheck is included with Global Entry membership . Here’s a side-by-side breakdown of the two programs:

What is CLEAR?

CLEAR is a biometric technology company that is not a government-operated trusted traveler program but can provide expedited identity screening. CLEAR® Plus is a program found at more than 55 U.S. airports that allows its members to go through the security checkpoint process in a dedicated lane with reduced waiting times.

Certain credit cards provide a statement credit to reimburse CLEAR Plus membership, such as the The Platinum Card® from American Express and the American Express® Green Card .

Amex Green vs Gold vs Platinum: What color looks best on you?

TSA PreCheck is in more than 200 airports, although some airports will have both TSA PreCheck lanes and CLEAR lanes. Which one is faster will depend on various factors including how busy the airport is and how many people are in line for each.

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Are there other Trusted Traveler programs?

Yes, in addition to TSA PreCheck and Global Entry, other trusted traveler programs include:

• NEXUS: This program has a $50 application fee and is good for five years once approved. NEXUS allows expedited air, vehicle and pedestrian entry into the U.S. and Canada, expedited marine entrance into the U.S. from Canada and access to TSA PreCheck expedited security lanes at airports within the U.S. and U.S territories for U.S. Citizens, U.S. lawful permanent residents, and Canadian citizens.
• SENTRI: This program has a $122.25 fee and SENTRI is valid for five years once approved. The program allows expedited air, vehicle and pedestrian entry into the U.S. from Canada and Mexico. It’s available to U.S. citizens and lawful permanent residents, as well as all foreign nationals. SENTRI offers access to TSA PreCheck expedited security lanes at airports within the U.S. and U.S territories for U.S. citizens and U.S. lawful permanent residents.
• FAST: This program has a $50 fee and it’s valid for five years. FAST allows expedited entry for truck drivers entering and exiting the U.S. from Canada and Mexico who are U.S. citizens, U.S. lawful permanent residents, Canadian citizens, Canadian permanent residents, and Mexican nationals. FAST does not include TSA PreCheck membership.

Credit cards with TSA PreCheck application fee reimbursement

There are numerous travel credit cards that offer an up to $100 application fee reimbursement credit for you to apply for either TSA PreCheck or Global Entry if you pay with the card. Some of the options include:

• American Express Platinum Card
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• Capital One Venture X Rewards Credit Card

Capital One Venture Rewards Credit Card

• Chase Sapphire Reserve®
• Aeroplan® Credit Card
• Citi® / AAdvantage® Executive World Elite Mastercard®
• Delta SkyMiles® Platinum American Express Card
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• IHG One Rewards Premier Credit Card
• Marriott Bonvoy Brilliant® American Express® Card

United SM Explorer Card

• United Club℠ Infinite Card
• United Quest℠ Card

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To view rates and fees of the Delta SkyMiles® Platinum American Express Card,  see this page 

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The takeaway

TSA PreCheck has the potential to save you a lot of time and hassle at the airport, particularly if you’re a frequent traveler. And, with the right credit card, you can get it almost free—we say “almost” because cards that come with a TSA PreCheck reimbursement typically charge an annual fee, so you’ll still have to pay to carry the card. But that doesn’t have to be expensive. 

For example, the United Explorer charges a $0 introductory annual fee for the first year (then $95). If you’re someone who flies United regularly, you’ll likely find this card well worth that price tag. In addition to the TSA PreCheck benefit, it offers perks such as your first checked bag free, priority boarding, and two United Club one-time passes per account anniversary year.

See our picks for the best credit cards for cheap airport lounge access .

In conclusion, we think most travelers flying out of U.S. airports will find TSA PreCheck well worth it. And, if you fly internationally, consider Global Entry—you’ll get PreCheck included.

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EDITORIAL DISCLOSURE : The advice, opinions, or rankings contained in this article are solely those of the Fortune Recommends ™ editorial team. This content has not been reviewed or endorsed by any of our affiliate partners or other third parties.