Employee Business Expense Reimbursement Form
Give your employees a simple way to submit reimbursement reports. As a new employer, you will quickly realize that you need a way to reimburse employees for general business expenses like office supplies, telephones, mileage, software, training fees, etc. A while ago, I created a Travel Expense Form, but for these other expenses, a more general Reimbursement Form will suffice. All you need is a simple spreadsheet for this type of form, so our free expense reimbursement template below is just the thing.
This reimbursement form was designed to allow employees to request reimbursement for general business expenses.
How Do I Reimburse an Employee For Business Expenses?
How to Reimburse Employees for Business-Related Expenses
Customize the template and then give a copy of the form to your employees when they need to submit a request for expense reimbursement. Make sure they know to attach a copy of their receipts. Remember to customize the list of items in the Categories worksheet and keep the mileage rate note up-to-date (see the references below for the current rates).
It would probably be good to write-up a short document that you can give your employees as a guide for what types of expenses you will reimburse and any other policies that you want to put into place (such as requiring an employee to get prior approval for any purchase over $XX).
Processing a Payment: For accounting purposes (assuming you are using an "accountable plan" - see IRS Publication 463), I find it simpler to write a separate check than to include the reimbursement in a payroll check. Employees may appreciate being reimbursed as soon as possible, instead of waiting for the normal paycheck. If you write a check, make sure to write Expense Reimbursement in the Memo field or otherwise indicate that the check is a reimbursement rather than a normal paycheck. See IRS Publication 463 for detailed rules.
For each expense, choose an appropriate category. If you have questions about how to use the form, ask your employer. Don't forget to attach copies of your receipts.
Important: Keep a copy of your receipts and your reimbursement request form for your own records!
Business Meals: For business meals to be tax-deductible, there must be a clear business purpose, along with a receipt. You might include the purpose for the meal in the Description if you are listing many items on a single form.
- IRS Publication 463 (Chapter 6) at irs.gov - How to Report Expenses (information for both employees and employers)
- Mileage and Per Diem Rates at www.gsa.gov - U.S. General Services website providing mandated rates for mileage reimbursement and per diem.
- Standard Mileage Rates at www.irs.gov - The IRS's table for employees and self-employed individuals.