Expense policy template for an employee handbook: free and customizable
Also known as: Travel and expense policy template, Expense reimbursement policy template, Business expenses policy, Handbook expenses section
A free expenses section for an employee handbook. It covers what the company reimburses, what it does not, approval limits, travel booking, meals and accommodation, receipts, claim deadlines, reimbursement timing, advances and company cards, and what happens when the rules are misused.
An expense policy prevents two kinds of trouble: employees who are unsure what they may spend and are left out of pocket, and spending that nobody approved. The best policies are short and specific. They state the principle (spend as if it were your own money), set limits where the risk is real, and say how and when claims are paid. This section is country-neutral. Tax treatment of reimbursements, per-diem rates and mileage allowances are set locally, so those lines have placeholders for you to fill in.
SECTION HEADER
[COMPANY LEGAL NAME] Expenses Version: [1.0] Effective date: [YYYY-MM-DD] Applies to: [ALL EMPLOYEES / THE GROUPS LISTED] Owner: [FINANCE / HR / ROLE]
1. PRINCIPLES
We reimburse reasonable expenses that you incur for the company's business. An expense must have a business purpose, be proportionate and be supported by a receipt. Spend company money as carefully as you would spend your own. You may not gain personally from an expense.
2. WHAT WE REIMBURSE
Examples of expenses we reimburse when they are incurred for business: - Travel to meetings, clients or events, approved in advance - Accommodation and meals during business travel, within the limits in section 5 - [TRAINING, CONFERENCES AND PROFESSIONAL MEMBERSHIPS APPROVED BY YOUR MANAGER] - [HOME OFFICE EQUIPMENT AND ALLOWANCES AS DESCRIBED IN THE WORKING HOURS AND REMOTE WORK POLICY] - [CLIENT ENTERTAINMENT WITHIN [AMOUNT] PER PERSON, WITH THE NAMES AND PURPOSE RECORDED] - [OTHER: LIST]
3. WHAT WE DO NOT REIMBURSE
- Personal expenses, including personal travel added to a business trip - Fines, penalties and parking or traffic violations - Alcohol, unless it is part of approved client entertainment - Expenses for family members or friends - Expenses without a receipt, unless [APPROVED BY FINANCE] - [OTHER: LIST]
4. APPROVAL LIMITS
- Up to [AMOUNT]: your manager approves. - From [AMOUNT] to [AMOUNT]: [ROLE] approves in advance. - Above [AMOUNT]: [ROLE] approves in advance. Do not split a purchase to stay under a limit. Approve in advance anything that you cannot easily claim back.
5. TRAVEL, MEALS AND ACCOMMODATION
Book travel through [TRAVEL TOOL / TRAVEL AGENT / FINANCE] at least [NUMBER] days ahead where you can. Choose [ECONOMY CLASS / STANDARD CLASS] and the cheapest reasonable option that fits the schedule. Accommodation: up to [AMOUNT] per night in [CITY CATEGORY]. Meals: [ACTUAL COST UP TO [AMOUNT] PER DAY / A DAILY ALLOWANCE OF [AMOUNT] PER [COUNTRY OR REGION] AS SET BY [LOCAL RULE]]. Local transport: [PUBLIC TRANSPORT / TAXI WHEN [CONDITIONS]]. Use of your own car: [AMOUNT] per [KILOMETER / MILE], as long as the trip is approved.
6. RECEIPTS AND CLAIMS
Submit your claim in [EXPENSE SYSTEM / FORM] within [NUMBER] days of the expense, and no later than [DEADLINE] after a trip. Attach an itemized receipt or invoice for every expense. State the date, the amount, the currency, the purpose and, for meals and entertainment, who attended. Claims submitted after [NUMBER] days [MAY NOT BE REIMBURSED / REQUIRE APPROVAL FROM FINANCE].
7. PAYMENT
Approved claims are paid [WITH THE NEXT PAYROLL / WITHIN [NUMBER] WORKING DAYS] to your bank account. Foreign-currency expenses are converted at [THE RATE ON THE DAY OF PAYMENT / THE RATE ON YOUR CARD STATEMENT / THE COMPANY'S MONTHLY RATE]. Reimbursements are [NOT PART OF YOUR SALARY / HANDLED FOR TAX AS LOCAL LAW REQUIRES].
8. ADVANCES AND COMPANY CARDS
[Advances: You may ask for an advance of up to [AMOUNT] for approved travel. Account for it within [NUMBER] days of the trip and return any unspent amount.] [Company cards: Company cards are for business expenses only. You are responsible for keeping the card safe and for submitting receipts for each charge within [NUMBER] days. Report a lost card to [CONTACT] at once. Personal use must be repaid within [NUMBER] days.]
9. MISUSE
Claims that are false or inflated, or personal expenses charged to the company, are a serious breach of this policy and of the Code of Conduct. They can lead to repayment, [DEDUCTION FROM PAY WHERE LAW ALLOWS], disciplinary action up to dismissal and, where required, reporting to the authorities.
When to use this template
- Employees are starting to travel, buy tools or pay for client meetings and ask who covers it
- Claims reach finance with missing receipts or without approval
- You are setting up company cards or advances for the first time
What the policy has to decide
- The principle: business purpose, reasonable cost, and no personal gain
- What is covered and what is excluded
- Who approves what, and above which amount
- How to book travel and what class and price limits apply
- What proof is needed and how long employees have to claim
- How fast claims are paid and in which currency
- What happens with advances, company cards and misuse
Customization notes
Section 2: list only what you will actually reimburse. A vague "reasonable expenses" invites disagreement. Section 4: set limits at a level where you really want a second pair of eyes, and make them lower for expenses that carry more risk, such as entertainment and gifts. Section 5: for per diems and mileage, use the local statutory or tax-free rates where they exist. They differ widely and change. Section 6: make receipts non-negotiable and allow a short list of exceptions with a form that the employee signs. Section 7: reimbursing in the same currency as the expense is simplest. If you convert, state the rate source so that claims do not turn into rate disputes. Section 9: check whether deducting a repayment from pay is allowed where the employee works. In some countries it is not, or needs written consent.
Frequently asked questions
What should an expense policy include?
The principles, what is and is not reimbursed, approval limits, travel, meal and accommodation rules, receipt and claim deadlines, payment timing and currency, advances and company cards, and the consequences of misuse.
How long should employees have to submit expenses?
A deadline of 30 days after the expense is common. A short deadline keeps finance records current, but make sure the deadline works for people who travel.
Are expense reimbursements taxable?
It depends on the country and on whether the reimbursement follows local rules, for example a documented business purpose or a fixed per-diem rate. Ask your accountant, and write the answer into the policy.
Do employees need receipts for every expense?
In principle yes. Receipts are the basis of the tax treatment and the audit trail. Allow only a short, defined list of exceptions, such as small tips or tolls, and require a signed statement when a receipt is missing.