We Answer: What Are Expense Reimbursements? And Other FAQs.
A SAP Concur blog post answers common questions about expense reimbursements, including: what is an expense reimbursement, what expenses are reimbursable, whether receipts are needed, how to pay reimbursements, reimbursement timelines, whether reimbursements count as income and are taxable, and alternatives. It emphasizes that reimbursement amounts should exactly match expenses, receipts are non-negotiable for IRS audits, and reimbursements are not considered income for employees. Alternatives include advances, per diems, corporate cards, and purchasing cards.
Impact and considerations
Clear expense reimbursement policies and processes are critical for corporate compliance and employee satisfaction. Understanding IRS rules and best practices helps companies avoid tax risks while ensuring timely reimbursement for employees.
Key points
- An expense reimbursement is payment from a business to an employee for business-related expenses incurred personally, and the amount should exactly match.
- Reimbursable expenses must meet IRS guidelines: reasonable and incurred for the purpose of earning income.
- Receipts are required for reimbursement and are non-negotiable if audited by the IRS.
- Reimbursements can be paid via payroll, check, or direct deposit, but payroll may delay receipt.
- Reimbursements are not considered income for employees and do not need to be reported to the IRS.
- Alternatives include advances, per diems, corporate cards, and purchasing cards.
Sources and time
- Primary source
- SAP Concur
- Other sources
- 0
- First source publication
- 11 Jan 2023, 17:20
- Page published
- 14 Aug 2026, 08:27
- Last updated
- 11 Jan 2023, 17:20
- Original links
- SAP Concur Blog：We Answer: What Are Expense Reimbursements? And Other FAQs. (opens in a new tab)Primary source · en · Published 11 Jan 2023, 17:20