Travel expenses are the expenses in a company that are related to a trip. The trip must be related to your workplace and approved by your employer. It does not apply to daily commuting to and from work.
A travel expense can be hotel expenses, plane tickets, dinner, and taxis, for example.
How to get travel expenses covered?
There are several ways to get travel expenses covered. Often, the employee pays for the expenses during the trip and gets reimbursed afterwards, but it is also possible for the employer to pay directly for the expenses. This can happen, for example, if the employee has a company card.
If you have paid for travel expenses with a personal card, it can be covered as expense reimbursement. This happens when the employee receives benefits after completing the work. The most common way to cover travel expenses is through reimbursement. Reimbursement means that you get reimbursed for the actual expenses. You then keep receipts for all purchases and report them. Then you get the money refunded.
An employee can also receive a per diem based on rates. This must be reported together with salary.
How much of the travel expenses should be covered?
What should be covered by travel expenses is determined between the employer and the employee. It is common for hotel, transportation, and meals to be covered. How much you get paid will also depend on the timing and duration of the trip. If the trip lasts longer, it is natural to have a salary supplement, bonus, or similar to compensate for the time spent on the trip.
For the expense reimbursements not to be taxed, the reimbursement cannot cost more than the trip.
If the employee has paid with a company card, it is recorded the same way on the plus side, and then deducted from the bank account it was charged to.
If the employee has paid with a company card, it is recorded the same way on the plus side, and then deducted from the bank account it was charged to.