Incidental Expenses (IE)
Candlefocus EditorIE are common when traveling for business purposes and are especially pertinent when an employee is using their personal funds in order to cover these expenses. It is important for companies to have policies and procedures in place which outline the reimbursement process. Often, companies require employees to pay for incidental expenses out of pocket or with a company credit card or cash distributed for the purpose.
When reimbursed, the payments made should be done so by means of separate, standalone checks. This will make it clear that the payments are merely reimbursements and not considered as income. Most companies will also often require receipt submission in order to showcase the validity of the expense and guarantee that the necessary steps were taken to ensure that the employee was not giving themselves a raise.
Overall, Incidental Expenses, while not often considered a major business expense, can still have major repercussions if not managed properly. Thoughtful consideration should be taken when both reviewing and formulating policies and procedures related to IE control and reimbursements in order to eliminate any complications that may arise.