Travel and Business Expense Reimbursement Policy

Transcription

1 Travel and Business Expense Reimbursement Policy Ctrl + Click on description or page number to go to that section Ctrl + Click on description or page number to go to that section... 1 Purpose and Requirements... 2 Substantiation Requirements... 2 Falsification of Expenses... 2 Expense Report Submission Deadline... 2 Non-Reimbursable Expenses... 3 Travel Authorization... 3 Travel Arrangements... 4 Travel Advances... 5 Overseas Travel Health and Welfare Advance Approval Requirements... 6 Special Approval Requirements... 6 Reimbursement Requirements... 7 Car Rental... 7 Mileage... 8 Parking Fees and Tolls... 8 Telephone/Fax/Internet... 9 Cellular Phone Charges... 9 Lodging Meals Entertainment VISA/Passport Expenses Training Expenses Employee Activities Clubs and Memberships Dependent Care Pets Personal Losses Postage Gifts and Flowers Competitive Samples Relocation Expenses Expense Reports and Approval Requirements General Reimbursement Requirements

2 Purpose and Requirements From this point forward, the Company refers to Vollrath Company, LLC. The purpose of this policy is to document the allowable business expenses eligible for reimbursement. These include necessary and reasonable expenses as defined under section 162 of the Internal Revenue Code. Also included is additional reference information that may be useful to Vollrath employees in submitting employee business expense reports in order to receive timely reimbursement. If you are not sure how to classify a certain expense, contact the Accounting Manager for assistance. The approving manager is responsible for knowing the Company expense reimbursement policy and evaluating whether the expenses incurred are reasonable. If expenses are not clearly explained or are inconsistent with Company expense reimbursement policies, the approving manager is responsible for instructing the employee to correct any errors identified in the expense report, and for providing guidance to the employee on appropriateness of expenditures. Substantiation Requirements ALL expenses must be accompanied by a receipt or supporting documentation. Failure to provide such will result in denial of reimbursement. Exception: Meals of less than $25.00 value do not require a receipt. The Company does not offer a per diem rate. The GSA (U.S. General Services Admin) maximum daily total meals allowance amount for a city the size of Sheboygan is $51, Milwaukee $61 and Chicago $71. Falsification of Expenses Submitting fraudulent receipts or falsifying your expense report will result in loss of your reimbursement privileges or disciplinary procedure up to termination. Expense Report Submission Deadline Expense reports are due in Accounts Payable every week on Tuesdays by 12 noon CST. Use standard overnight delivery for expense reports on Monday to ensure delivery by Tuesday. Do not use priority morning delivery. 2

3 All reimbursement checks will be issued on the next scheduled check run (if submitted by the deadline, would be the Thursday of that week). This will be delayed if policy is not followed for submission of expenses. Non-Reimbursable Expenses The following are not reimbursable since they are primarily for personal use: adult entertainment air flight and other travel insurance air flight amenities (meals, headphones, alcohol, etc) clothing credit card interest charges day-care for children, elderly or pets fees for upgrades of air, hotel, or auto golfing or green fees golfing cart rental grooming, nail, hair salon, spa or massage expenses guest's expenses when accompanying a Company employee on trip health club fees hotel cancellation fee laundry (unless 5 out of town nights or more) movies (either in-room or at the theater) over-the-counter medications personal bar tabs and mini-bar purchases personal books, magazines or other entertainment personal car repair and maintenance personal expenses incurred during absence (snow removal, lawn care) personal travel portion during business trip (hotel, car rental, meals, etc) pet hotel stays or pet transportation political or charitable contributions rental fees for formal wear sporting events tobacco products (cigars, cigarettes, etc) toiletries theater, cinema or opera tickets traffic citations (parking tickets or fines) valet services (unless it is the only option) The exception to some of these items being reimbursable is if it pertains to client entertainment. Exceptions must be pre-approved by management. Travel Authorization All air travel must be booked either through Concur Solutions or by calling a Fox Agent. Concur bookings follow the proper authorization process. Bookings through a Fox Agent must have the Travel Authorization form completed and authorized by their supervisor. An from your Supervisor authorizing the travel is acceptable provided that travel 3

4 details are stated in the . Vice Presidents, CFO and President are exempt from this pre-approval requirement. Travel Arrangements All Company travel arrangements must be made through Fox World Travel via: 1. Concur Solutions Or 2. Fox Travel Agent To use Concur: Visit our travel portal with Fox is located: To set up a Concur profile please visit the link above and click on Concur Self- Registration in the upper left hand corner of the page: Or Contact a Fox Agent: Phone Number: Toll Free number: Fax Number: Domestic Team: fwt08@gofox.com International Team: intl78@gofox.com Agency hours are Monday-Friday 7:00 a.m. 7:30 p.m. CST After Hours, weekends, holidays: 4

5 Within USA: Outside USA: Code: 003 Travel Advances In case of financial hardship, an advance for travel may be granted. When submitting your expense report, deduct the advance from your total expenses and submit a check for any amount remaining (if any) due to the Company. Travel advance refunds received after the 90 day time window could be subject to all payroll tax withholdings, if any, as per IRS guidelines. Any advance must be paid immediately upon termination or will be deducted from the employees remaining payroll amount due. Overseas Travel Health and Welfare The Vollrath Company, LLC recognizes the need to care for the health and welfare of our employees when they participate in overseas travel for business purposes. The employee is responsible for obtaining any necessary immunizations or preventative medicine for their health as they travel overseas. Those travel precautions are reimbursable expenses. If the Company employee requires medical attention for illness/injury which occurred while traveling overseas, the employee should seek the appropriate medical attention. Any work related illness or injury will be considered a Worker s Compensation injury. All bills should be sent through the Company s Worker s Compensation insurance plan. If the employee is required to pay for the medical service up front, the employee should pay for the service and then file the claim with the insurance company upon their return. The HR Department can assist you in this manner. If the illness is serious in nature and requires the employee to return earlier than originally expected, the Company will make every arrangement possible to assist the employee with the proper arrangements. Medical expenses that are not work related will be considered as a traditional health care expense and should be handled through the employee s health care plan. 5

6 Advance Approval Requirements Advance approval is required for reimbursement of the following, with designated approving party noted: Family Member Expenses Combining Company and Personal Travel Policy Exceptions Entertainment incurred at home Use of leased, rented or chartered aircraft, including air taxis Special Approval Requirements Special approval is required for reimbursement of the following, with designated approving party noted: Reimbursement for loss of or damage to personal belongings. Reimbursement for the theft or loss of cash or tickets, except where the loss is clearly beyond the employee s reasonable control such as forcible theft/robbery documented by a report to a law enforcement agency (report to be included with expense report) immediately after the incident. 6

7 Reimbursement Requirements All travel related expenses should be paid by the employee and submitted for reimbursement according to the following categories and guidelines: Airfare Fox World Travel has been directed to obtain the lowest airfare available for all domestic and international flights. Employees with frequent flier programs who desire an alternative airline will be accommodated, as long as there is no additional cost to the Company. Contact Fox World Travel for further information on frequent flier programs. Plan as far in advance as possible in order to take advantage of early purchase discounts. Many airlines now charge for either the first or second bag checked. Baggage fees are generally reimbursable, however Company employees are expected to minimize the occurrence of these fees and check the fewest bags possible. Additional checked baggage as required for business needs is also allowed, but employees should follow the business policy and applicable laws for shipping equipment, tools and/or merchandise. Partially or totally unused tickets MUST be promptly sent to Fox World Travel to ensure proper refunding. Employees should immediately notify Fox World Travel regarding lost tickets. Airline lost ticket application fees are the responsibility of the employee and will be deducted from expense report reimbursement amount. Car Rental The Vollrath Company and Fox partnered with National/Enterprise car rental for negotiated rates. Please book all cars via Concur or Fox Agent. 1. Midsize (or lower) models should be rented. Higher upgrades are allowed only when transporting materials requires cargo space, or if three or more persons are traveling together. Upgrades not authorized by this policy are not reimbursable. 2. The Company self-insures for collision loss; therefore employees should decline the additional insurance offered. Any additional personal accident insurance (PA) or excess liability insurance may be purchased at the employee s option, but will not be reimbursed by the Company. 3. Employees should avoid costly surcharges by refueling rental vehicles before returning them. Gasoline expenses for rental cars are reimbursable. 4. Rental cars should be returned to the original rental location in order to avoid costly drop-off charges. 7

8 Mileage The traveler is entitled to claim round trip mileage based on the current IRS published rate per mile when using a personal vehicle. For employees whose office is located in their home, all business mileage is reimbursable. Destination and reason for all mileage claimed must be included on the Employee Expense Report. For Corporate employees mileage from your home to the office is not reimbursable. Mileage incurred in excess of the daily commuting miles is reimbursable at the rate shown above (business related). Mileage is not reimbursable while using the Company provided vehicles. Round trips to the airport when performed by a spouse to drop off/pickup the employee is allowed, since cost savings on parking are beneficial. Parking Fees and Tolls Long-term parking should be used for travel exceeding 24-hours. City parking charges are reimbursable. Any parking charges totaling over $5 for the day must have receipts. Valet parking is considered a non-reimbursable expense unless it is the only option in that city. Parking violations are not a reimbursable expense. Tolls are reimbursable. Note reason for trip and indicate number of tolls with total. Submit receipts when possible. Taxi/Shuttle/Public Transportation/Rapid Transit Employees should evaluate their individual circumstances and select the safest, most economical alternative when traveling to and from all destinations. Airport or hotel courtesy limousines or shuttle busses should be utilized whenever practical. Taxi, shuttle, and other public transportation (trains, buses, etc) expenses should be itemized as Other Transportation on the expense report and should be accompanied by receipts. Taxi tips should not exceed 15% and be included on the total cost of the fee when reporting. 8

9 Telephone/Fax/Internet The Sales Force employees working from a home office will be reimbursed for telephone, internet and fax expenses incurred, including any installation costs and supplies which are necessary to perform job duties up to $35. The requirements for reimbursement are as follows: Business/Office, internet, phone and fax lines installed in Sales department employees home offices, should be billed to and paid for by the employee and should be included on a monthly expense report. Telephone, Internet and Fax expenses should be entered separately on the expense report. Documents with itemized charges must be provided for reimbursement. Home internet monthly charges are reimbursed up to $35. Purchase of communication equipment must be approved by the Information Technology manager before buying. The use of an All-In-One Printer-Copier- Scanner-Fax is required instead of just fax machines. While traveling, employees must use a cell phone or calling card for all business related calls. Whenever making long distance calls from hotel phones, use the corporate calling card to avoid expensive hotel toll charges. Corporate calling cards may be obtained by contacting the Information Technology manager at the corporate office. Use of air phones during air travel is prohibited. Phone calls appearing on hotel bills should be expensed in the Telephone section of the expense report and not included on the Lodging line. Internet charges appearing on hotel bills should be expensed in the Internet section of the expense report and indicate that it is on the hotel bill. Cellular Phone Charges If you have been issued a Corporate cell phone, there are no reimbursable expenses. Savings Note: When calling the Corporate Voic system do not call the Company's 800 number when using your cellular phone. This is primarily due to the fact that two charges will be incurred; one charge from the cellular service provider and Vollrath Company, LLC is charged for use of the Company s toll-free line. Rather, call your extension and enter voic by pressing the pound sign after your greeting begins. Any Sales Force employee using a personal cell-phone for Company business should pay the bill and submit the itemized total with their monthly expense report. Reimbursement when using a non-corporate issued phone is 80% of total bill to a maximum of $150. Again, employees with Corporate phones do not qualify for this reimbursement as they should not require the use of a personal cell-phone for business. 9

10 Lodging All hotel reservations should be made through Fox World Travel, as they have special, negotiated rates with some hotels. If that is not feasible, hotels up to $150 per night for a single, standard room are to be used in all non-metropolitan areas. In larger cities (i.e. New York, Los Angeles, Honolulu, Chicago) travelers should stay in safe, secure accommodations available in the range of $150-$300 per night, if located in the metropolitan area. In-room movies, mini-bar purchases, spa services (massage, nails, hair, etc), charges to use the gym, pool or sauna facilities will not be reimbursed. Laundry services and valet parking are generally considered non-reimbursable expenses. However, hotel stays in excess of 5 days may warrant the use of laundry services. Exceptions must be approved by your immediate supervisor. Meals When traveling for the day, one meal is reimbursable for the individual employee. It should not exceed $15. Note: this is not a per diem, but a suggestion. When traveling overnight, employees will be reimbursed for three meals per day. It is recommended that total daily meal expenses should not exceed $50.00 for the individual employee traveling. Note: this is not a per diem. The GSA maximum daily total meals allowance amount for a city the size of Sheboygan is $51, Milwaukee $61 and Chicago $71. All meals expensed must have itemized receipts unless under $25. When more than one Vollrath employee is at the meal, the highest ranking employee must pay for the meal and expense because of the expense approving hierarchy. When expensing meals, please note the following: Detachable tabs from dinner checks are not considered valid receipts and Credit Card statements will not be accepted as evidence of a receipt and will not be accepted. An itemized dinner check must be submitted. For non-entertainment expenses, only one drink per meal per person will be the maximum amount reimbursed. Tips may not exceed 20% of the cost of the meal and should be included on the total of the meal (broken out on receipt is fine). All meals should be entered under the correct date in the corresponding category (breakfast, lunch, dinner). If there are multiple receipts for one meal, please list separately (do not total daily amounts). Any business meal over $100 needs a Business Requirement form submitted which should describe who attended and the business purpose. The explanation should always include the names, titles and company affiliation of those entertained. A short description (1-5 words) of the topic of conversation should also be included. Hint: This information can be written on the back of the receipt as a reminder. 10

11 Entertainment This policy is used for activities or events that are focused on the customers or vendor and should not be confused with Employee Activities described below. Entertainment expenses are reimbursable only if they are directly related to the Company business. This means that [1] business must actually be conducted either during the entertainment or immediately before or after and [2] there must be an expectation that the Company will derive a business benefit from the entertainment (other than goodwill of the person or persons entertained). This does not mean that the Company is requiring that income or another business benefit actually resulted from each and every entertainment expenditure. Indeed, employees must avoid situations where it might appear that business entertainment is being offered in exchange for a particular business benefit, such as a contract for purchases. Rather, business entertainment events should be used as an opportunity to promote Vollrath Company LLC s products and to learn more about the customer s or prospective customer s business. (See Appendix for group entertainment exceptions for President and CFO). In order to qualify for reimbursement, employees must be able to prove the business purpose and provide documentation for the amount of each expense, the date and place of the entertainment, and the business relationship of the persons entertained. If entertainment expense is incurred in places where obtaining a receipt is difficult, the Business Requirement form can be used for documentation. Adult Entertainment is NOT a reimbursable expense. Regardless of whether this might be an accepted business practice in some countries, Vollrath Company, LLC will not tolerate the use of Company funds at adult entertainment establishments. Adult Entertainment is defined as nightclub type entertainment that includes shows or other activities with an overtly sexual content (e.g. topless bars, strip clubs, etc.). Submission of receipts for expenditures related to adult entertainment will result in strong discipline, up to and including termination of employment (where permissible under applicable law). VISA/Passport Expenses When required for Company business, VISA and passport expenses are covered. Employees in an area that does NOT require frequent travel abroad, have to obtain or renew a passport at their expense. Training Expenses Only Pre-Approved training expenses relating to the employees professional improvement are allowable for reimbursement from the Company. The employee is to pay for the fee and submit registration confirmation and pre-approval sign-off with the expense report for reimbursement. All charges for training are to be expensed to the training pre- 11

12 approved account only. Unpaid invoices from organizations will not be accepted for payment. Employee Activities This policy includes activities that focus on employees, not customers. Prior approval from the CFO is required. Reimbursement is permitted for events that are intended to promote team morale and foster cohesion within a team. Reimbursable expenses include, but are not limited to, the cost to rent the facility, meals and entertainment. Expense for each event must be reasonable. Birthday meals/parties and Holiday luncheons are NOT reimbursable events. Corporate sponsored events are excluded from this policy. Clubs and Memberships Pre-Approved initiation fees, assessments and dues for membership in professional, business or civic organizations are allowable for reimbursement from the Company. The employee is to pay for the fee and submit on an expense report for reimbursement. Unpaid invoices from organizations will not be accepted. Employees are responsible for all fees and costs associated with membership in private clubs (e.g. country clubs, dining clubs, airline lounges, etc.) The Company will not pay for, or contribute to any fees and costs associated with memberships in private clubs. Dependent Care Child or Elderly care is not a reimbursable item. Pets Pet care items such as kenneling, day care, grooming, or travel charges, are not reimbursable. Personal Losses Personal losses while on Company business are not reimbursable. 12

13 Postage Postage costs for business related shipments are reimbursable. When shipping a package, use the most economical mode of delivery, such as FedEx or UPS. When submitting the expense, indicate what was shipped, to whom and why on the expense report and receipt. Gifts and Flowers Only department managers or above may submit expenses for reimbursement of gifts and flowers, which are subject to budget limitations. Those receipts should have the recipient s name and reason noted on it. Bereavement flowers/memorials are administered by Human Resources. Employee purchased bereavement flowers/memorials are not reimbursable. Gifts given to family or friends whose residence is used in lieu of a hotel during a business trip are not reimbursable due to tax requirements. Competitive Samples The purpose of this policy is to obtain competitive samples in the quickest most efficient manner, and to eliminate the need to generate purchase orders when it can be avoided. Also, it will provide a system for tracking sample usage to ensure effective use and cost control. 1. If internal staff is requesting the sample, obtain it through the District Sales Manager (DSM). The DSM should then forward the samples to the internal staff member whom requested it. 2. The DSM purchases the sample and records the expense on a separate weekly expense report. 3. Sample expenses should be charged to the DSM s account if the item is necessary for a sales meeting or other presentation. If the sample is for an internal employee, their name should be included on the expense report so the sample can be charged to that individual s cost center. Relocation Expenses Relocation and expatriate expenses are not reimbursable through the expense reporting process. Please contact Human Resources for proper reimbursement. 13

14 Expense Reports and Approval Requirements General Reimbursement Requirements The requirements for expense reports and approvals are as follows: Only approved expense reports should be submitted to Accounts Payable weekly in order to facilitate timely reimbursement. All expense reports should be submitted within 30 days of incurring the expense. Reports filed beyond 30 days will require approval of the Controller. The Company may elect not to reimburse expense reports that are more than two months in arrears. IRS guidelines state that business expenses submitted after 60 days may be disallowed as a corporate deduction for timeliness, and treated as personal income for the employee. Scanned reports, receipts and photos of itemized receipts are acceptable and must be legible. Faxed copies of receipts will not be accepted. Expense reports will be processed as any other invoice. Expenses incurred in a foreign country charged on the employee s charge card will be reimbursed based upon the converted rate per the statement. A copy of the credit card statement (for time constraints, may be obtained via online credit card account access) must accompany expense report and receipts for proper reimbursement. All expenses included on the expense report must be accompanied by a valid receipt, and a brief explanation of the expense. Credit Card statements will not be accepted as evidence of a receipt. All expense reports must be approved and signed by your immediate Supervisor/Manager. The Company reserves the right to withhold reimbursement while it investigates expense report items not properly documented. These requirements may be modified at any time at the discretion of the Chief Financial Officer. 14