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When employees travel for business, they often incur expenses that are reimbursable by the company. These expenses can include airfare, lodging, meals, and more. To ensure that this process is streamlined and transparent, many companies have a travel and entertainment policy in place. This policy outlines what expenses are eligible for reimbursement, how employees should go about submitting their expenses, and any other guidelines or restrictions that apply.
If you’re looking to create a travel and entertainment policy for your own company, we’ve put together a sample policy below that you can use as a starting point.
Expense Categories
The first section of your travel and entertainment policy should outline which expense categories are eligible for reimbursement. Common expense categories include:
- Transportation (airfare, train fare, taxi fare, rental car)
- Lodging (hotel costs)
- Meals (including tips)
- Entertainment (business-related activities such as client meetings or team building events)
- Miscellaneous (parking fees, tolls, business-related phone calls)
Approval Process
Next, your travel and entertainment policy should outline the approval process for expenses. This section should include:
- Who is responsible for approving expenses (e.g. the employee’s manager)
- What documentation is required for reimbursement (e.g. receipts, expense reports)
- How quickly expenses will be reimbursed
Booking Travel
This section of the policy should outline how employees should book travel for business purposes. This can include:
- Which travel booking sites or services to use
- When to book travel (e.g. at least two weeks in advance)
- What to do if travel plans change (e.g. if a flight is cancelled)
Per Diem or Actual Expenses?
Some companies prefer to reimburse employees for expenses using a per diem rate (i.e. a set amount for each day of travel), while others prefer to reimburse actual expenses. This section should outline which method your company uses, and any guidelines or restrictions that apply.
Expenses Not Eligible for Reimbursement
Finally, your travel and entertainment policy should outline which expenses are not eligible for reimbursement. Common expenses that may not be eligible include:
- Alcohol
- Personal expenses (e.g. souvenirs or personal phone calls)
- Expenses incurred during personal time (e.g. if an employee goes sightseeing during a business trip)
Conclusion
Creating a travel and entertainment policy can help ensure that your company’s travel expenses are managed effectively and transparently. By using the sample policy above as a starting point, you can create a policy that works for your company’s unique needs and requirements.