Payroll reimbursement is the sum of money which an employee gets back from the company, for having spent on expenses necessary for work. For employees to claim their reimbursements, these expenses should be specifically defined by the company.
In most of the cases, the employee has to produce the necessary bills to claim the reimbursements. In case, the reimbursements are defined as a part of the salary of the employee, then producing the bills is necessary to be able to get tax exemptions.
There can be various types of employee reimbursements. Some of them are listed below –
• Auto mileage and travel reimbursement
These reimbursements typically refer to any expenditures made while the employee is travelling, including vehicle, lodging, and meals. Employers either use the standard mileage rates when reimbursing employees for personal automobile travel or offer a fixed allowance for lodging, meals, and incidental travel expenses.
• Mobile Bills Reimbursement
There are a number of companies who opt to reimburse the telephone bills incurred by their employees. Among the main conditions for telephone reimbursement include-
-The connection should be billed in the name of the employee and needs to be a post-paid connection.
– Telephone reimbursements are applicable for data connection also.
• Medical Reimbursement
Some employers provide their employees with medical expense reimbursement plans. They include:
• Healthcare Reimbursement Plan – To reimburse health insurance premiums.
• Health Savings Account – To reimburse medical expenses directly to an employee’s personal bank account.