Travel policy themes and guidelines

Employers usually cover reasonable meals for travelling employees. Employee travel meal expenses have three options.

 

Per diem is a daily amount reimbursed to business travellers for food and incidentals. Per diems can cover lodging. Per diems are sometimes paid before a trip so employees don’t have to pay out of pocket and wait for reimbursement. Federal and private employers use this method. Individual receipts don’t need to be saved and submitted, and the company can accurately estimate a business trip’s cost. Employees should fill out a general expense report with dates, business purpose, and amount for tax purposes (per diems are not taxed as long as they are properly accounted for and used for business purposes).

 

Company policy determines whether employees can keep or be reimbursed for unused per diems.

 

Employees can buy their own food while travelling and submit receipts for reimbursement. Many employers set spending limits and don’t reimburse alcohol with meals.

 

A company credit card lets employees avoid upfront payments and reimbursements. This is a good idea for frequent travellers who don’t want to tie up personal funds in hotel deposits and meal expenses. If your employees will be entertaining clients or prospects on trips, they need a business card. It’s reasonable for employees to buy their own meals, but asking them to buy clients dinner is excessive. Before giving out credit cards, you should have a company policy.

 

Employees should agree to report lost or stolen cards or suspicious charges immediately. They should also agree that the card is for business use only and to reimburse the company for any personal expenses. Most business trips involve flights, which many of us dislike. Include any airfare or flight restrictions.

 

Business class seats for employees?

Most companies steer employees toward economy class, but list any exceptions. Off-peak travel times, business class may be cheaper or the same price as economy class after wi-fi and baggage fees. Some companies let employees book premium seats on long international flights.

 

Include if employees can use business travel rewards like frequent flyer miles for personal use. Air travel can be gruelling, so it’s worth providing this small benefit to employees rather than accumulating business rewards.

 

If your company takes frequent business trips, consider partnering with a hotel chain or vendor. If you book enough nights per year, hotels may offer a discount. This reduces hotel costs and simplifies booking. Tell employees to check the partnered hotel chain for each business trip. All employees get the same room quality and experience.

 

Employees are told to book standard rooms, not suites or upgrades. This reduces costs and improves fairness. Disabled employees can choose accessible rooms (sometimes called ADA rooms). Most hotels offer them for free. You can also specify whether extra charges are reimbursed or personal.

 

Can employees raid the minibar or order a pay-per-view movie?

These charges may fall under an entertainment budget or meal/incidental per diem. Wi-Fi and hotel parking are reimbursable.

 

Business travellers usually rent cars. Unless they need to transport large materials or clients, employees should choose the economy option. Employees may use other transportation methods and should track expenses. An employee visiting New York City may find it more cost-effective to use taxis, rideshare, or the subway than to park. Many companies reimburse airport public transit or rideshare costs.

 

Do employees need travel insurance? Some companies forbid employees from purchasing flight and travel insurance. Trip cancellation insurance could be useful, though. Consider the client’s industry and track record to determine if they’ll need to reschedule. Check if employees should pay more for rental car insurance. Company auto insurance may cover business travellers. Their personal coverage may include rental cars.

 

Specify the budget for entertaining clients on these trips.

In this situation, alcohol may be reimbursable, even if it’s not under your meal policy. Personal entertainment expenses like sight-seeing or going to bars/events alone after work aren’t reimbursed. Sometimes dry cleaning and personal expenses are reimbursable for important meetings or conferences. Your company decides whether to reimburse personal expenses.

 

Also, clarify personal travel.

Employees may request to stay over the weekend in a business trip location to explore. This is reasonable as long as the employee pays for additional hotel nights or rental car days and changing return dates doesn’t increase airfare costs. Before approving an employee’s personal travel extension, set clear expectations.

 

We’ve discussed business travel expenses; now write your travel policy and let employees know how to submit expense reports. Time limit employees. If expenses aren’t submitted quickly, receipts may be lost or forgotten.

 

A week is fair.

This policy should follow your reimbursement cycle. Others process expenses weekly or biweekly and only request monthly reports. If employees travel and expense often, use an app like Expensify to upload receipts and expenses from mobile devices. This keeps everyone organised and simplifies reimbursement. If you provide a company card, employees may be less motivated to submit expenses or save receipts without personal reimbursement.

 

Explain the reimbursement process.

Department heads, HR, or accounting receive expense reports. When is submission and payout? Some employers reimburse expenses on paychecks, while others use a separate system. Employees want to know when they’ll receive these funds, so be specific. Let employees know the turnaround time for processing reimbursements if there’s no set schedule or a deadline from the date of their return.

 

Professionalism is expected on business trips, but it never hurts to reiterate your company’s policies. Remind employees to follow company policies while travelling, including vehicle safety policies if driving. Most company policies should still apply while travelling, even for business dinners or networking events.

 

Employees should take this responsibility seriously when representing the company.