Receipts, Documentation, and Other Issues
Per Diems
This Latin phrase, whose literal translation means per day, is typically used to describe the specific amount of money an organization allows an individual to spend per day when traveling on company business. It is usually used to cover meals and incidentals. Most U.S. companies and organizations use the per diem rate guide published by the General Services Administration (GSA).
The rates are updated typically once a year, although this may be more frequent if there is some good external reason. The rates vary by city. If you use the per diem approach, based on GSA numbers, in your travel and expense processes, expect to get a lot of complaints. Your employees will swear that it is impossible to get by on the amounts of money offered.
Receipts
IRS guidelines require receipts for expenditures in excess of $75. However, most companies find this level a little high and require that employees submit receipts for expenditures in excess of $25. Still others require a receipt for everything. You will find that, whatever dollar limit you set for receipts, you will have an amazing number of expenses just under that dollar amount.
The other issue regarding receipts is how they are sent to Accounts Payable.
Traditionally, receipts were attached to the expense report. Small pieces of paper of differing sizes cause problems. To get these small pieces of paper under control, some companies insist that these receipts be taped to a piece of paper before they are submitted. You may or may not require your employees to do this. While some prefer to get receipts in this method, others hate it.
At some companies, receipts are submitted along with the report so the approver can verify that the expenses are accurate. Then the receipts are shipped along with the report to Accounts Payable. Another approach is to have the receipts sent in a barcoded envelope for filing. Companies that utilize electronic T&E approaches typically employ this approach.
Disaster Recovery: Lessons Learned From Charlie and Katrina
When the topic of business travel and entertainment is discussed, most of the focus is on conferences and business trips. But there is another side to T&E, and that is when something goes wrong. Disaster recovery is a topic that often gets short shrift in travel and entertainment discussions. It’s not that the professionals who work in the function think it’s not important; they simply can’t get the necessary management focus. All that changes when there is a T&E card or corporate credit card program and there is a disaster. More to the point, the issue gets top-line attention when the cards are used by emergency personnel like employees of the local power and gas company. Clearly, when sending employees out in emergency situations, corporate T&E cards play a key role in how their requirements are met.
As everyone reading this is aware, Florida has had its share of emergencies in the last year or two, all courtesy of Mother Nature. The following advice was offered by several speakers at the National Association of Purchasing Card Professionals’ recent annual forum. The speakers pointed out that in Florida, where they are based, they have an added advantage of other disasters. The advantage, if you will, is that there is some warning before hurricanes hit.
Usually, it is possible to predict when and where a hurricane will hit, so some planning is possible.
Based on hard-earned experience, they recommend the following:
No-name cards can be a problem. These cards generally are inactive and will need to be activated. While this can be done, it certainly adds to the stress of the situation and depending on electrical and phone capabilities can be a problem.
The Merchant Category Codes (MCC) on cards designed as emergency cards can be modified quickly to allow for purchases in categories normally restricted. This might include food and hotels.
Ideally, employees should have to rely on only one piece of plastic. This should be their regular card, perhaps with MCC restrictions lifted, as mentioned above.
Consider seasonal raises in limits, especially in areas that have seasonal problems such as hurricanes or excessive snow. In any event, make it very easy to raise the limits on cards used by employees likely to be involved in disaster recovery.
Do not use online travel reservation services in times of disaster recovery. Call the local hotels yourself.
Be aware that getting rooms can be difficult as there will be a number of companies competing for the same rooms. Remember, if it is a natural disaster, FEMA, insurance companies, and various government agencies are all likely to be jockeying for rooms.
Reserve a block of rooms in the locations you are likely to need them.
P-cards or at a minimum corporate travel cards are a necessity. Without them, getting necessary supplies is likely to be difficult. At a time like this, vendors do not want your purchase orders.
If there is no power, do not despair. Your p-cards and corporate credit cards will still hold the day. The vendors will resort to the old way: writing information on paper and running the information through later, at which time you will get your receipt.
Review periodically to make sure that the right people have cards, that is, those people who will be out in the field doing the work.
Although documentation is the last thing on anyone’s mind in times of disaster, if at all possible, employees should be directed to get the necessary receipts for their expenditures. Otherwise, afterward, if reimbursement from FEMA or other government agencies is required, it could be difficult without proper documentation.
Other Delicate Issues
There are a number of matters that are a big deal in some organizations and of no concern to others:
Liquor
Movies
Spouses
Liquor
Depending on your organization, this may not be an issue. However, for some it is a serious matter and the policy strictly forbids payment for alcohol. Some go so far as to require that the employee submit the detailed bill that shows what was ordered. In these instances, employees are advised to request a separate bill for the liquor. The idea is that the liquor is paid for with personal funds. If the policy is strict, this can be true even for a bottle of beer or glass of wine.
Movies
Few companies will pay for movies that their employees watch while on company business. Checking the hotel folio is also the way to discover whether an employee has charged a movie to his or her room. If your policy does not cover movies, and most don’t, you will need to have the employee reimburse you for this. While hotels are capable of preparing two bills for a stay and segregating charges at the employee’s direction, it takes a lot of work and time, especially when the employee is trying to check out of the hotel quickly.
Thus, most will leave the movie on the company bill and simply reimburse the firm. Many companies choose to look the other way on this issue as the dollar amount is small and the annoyance associated with trying to straighten it out is not worth the effort. It should be noted that many companies are silent on this issue and while they may say they won’t pay, they do. One can only hope that the employees use some common sense and discretion in their selection of entertainment.
Spouses
Most organizations will not pay for spousal travel unless the spouse of the traveling employee is actively participating in company business. The tax regulations address this issue, as more than one high-powered executive has discovered the hard way. However, if there is no additional charge for a second
person staying in the room—and there rarely is—few organizations object to a spouse (or child or friend) accompanying the traveler.
For more Information:
Travel and Entertainment Best Practices, Payroll Practice Fundamentals, Payroll Management and Accounting, Successful Direct Deposit
Per Diems
This Latin phrase, whose literal translation means per day, is typically used to describe the specific amount of money an organization allows an individual to spend per day when traveling on company business. It is usually used to cover meals and incidentals. Most U.S. companies and organizations use the per diem rate guide published by the General Services Administration (GSA).
The rates are updated typically once a year, although this may be more frequent if there is some good external reason. The rates vary by city. If you use the per diem approach, based on GSA numbers, in your travel and expense processes, expect to get a lot of complaints. Your employees will swear that it is impossible to get by on the amounts of money offered.
Receipts
IRS guidelines require receipts for expenditures in excess of $75. However, most companies find this level a little high and require that employees submit receipts for expenditures in excess of $25. Still others require a receipt for everything. You will find that, whatever dollar limit you set for receipts, you will have an amazing number of expenses just under that dollar amount.
The other issue regarding receipts is how they are sent to Accounts Payable.
Traditionally, receipts were attached to the expense report. Small pieces of paper of differing sizes cause problems. To get these small pieces of paper under control, some companies insist that these receipts be taped to a piece of paper before they are submitted. You may or may not require your employees to do this. While some prefer to get receipts in this method, others hate it.
At some companies, receipts are submitted along with the report so the approver can verify that the expenses are accurate. Then the receipts are shipped along with the report to Accounts Payable. Another approach is to have the receipts sent in a barcoded envelope for filing. Companies that utilize electronic T&E approaches typically employ this approach.
Disaster Recovery: Lessons Learned From Charlie and Katrina
When the topic of business travel and entertainment is discussed, most of the focus is on conferences and business trips. But there is another side to T&E, and that is when something goes wrong. Disaster recovery is a topic that often gets short shrift in travel and entertainment discussions. It’s not that the professionals who work in the function think it’s not important; they simply can’t get the necessary management focus. All that changes when there is a T&E card or corporate credit card program and there is a disaster. More to the point, the issue gets top-line attention when the cards are used by emergency personnel like employees of the local power and gas company. Clearly, when sending employees out in emergency situations, corporate T&E cards play a key role in how their requirements are met.
As everyone reading this is aware, Florida has had its share of emergencies in the last year or two, all courtesy of Mother Nature. The following advice was offered by several speakers at the National Association of Purchasing Card Professionals’ recent annual forum. The speakers pointed out that in Florida, where they are based, they have an added advantage of other disasters. The advantage, if you will, is that there is some warning before hurricanes hit.
Usually, it is possible to predict when and where a hurricane will hit, so some planning is possible.
Based on hard-earned experience, they recommend the following:
No-name cards can be a problem. These cards generally are inactive and will need to be activated. While this can be done, it certainly adds to the stress of the situation and depending on electrical and phone capabilities can be a problem.
The Merchant Category Codes (MCC) on cards designed as emergency cards can be modified quickly to allow for purchases in categories normally restricted. This might include food and hotels.
Ideally, employees should have to rely on only one piece of plastic. This should be their regular card, perhaps with MCC restrictions lifted, as mentioned above.
Consider seasonal raises in limits, especially in areas that have seasonal problems such as hurricanes or excessive snow. In any event, make it very easy to raise the limits on cards used by employees likely to be involved in disaster recovery.
Do not use online travel reservation services in times of disaster recovery. Call the local hotels yourself.
Be aware that getting rooms can be difficult as there will be a number of companies competing for the same rooms. Remember, if it is a natural disaster, FEMA, insurance companies, and various government agencies are all likely to be jockeying for rooms.
Reserve a block of rooms in the locations you are likely to need them.
P-cards or at a minimum corporate travel cards are a necessity. Without them, getting necessary supplies is likely to be difficult. At a time like this, vendors do not want your purchase orders.
If there is no power, do not despair. Your p-cards and corporate credit cards will still hold the day. The vendors will resort to the old way: writing information on paper and running the information through later, at which time you will get your receipt.
Review periodically to make sure that the right people have cards, that is, those people who will be out in the field doing the work.
Although documentation is the last thing on anyone’s mind in times of disaster, if at all possible, employees should be directed to get the necessary receipts for their expenditures. Otherwise, afterward, if reimbursement from FEMA or other government agencies is required, it could be difficult without proper documentation.
Other Delicate Issues
There are a number of matters that are a big deal in some organizations and of no concern to others:
Liquor
Movies
Spouses
Liquor
Depending on your organization, this may not be an issue. However, for some it is a serious matter and the policy strictly forbids payment for alcohol. Some go so far as to require that the employee submit the detailed bill that shows what was ordered. In these instances, employees are advised to request a separate bill for the liquor. The idea is that the liquor is paid for with personal funds. If the policy is strict, this can be true even for a bottle of beer or glass of wine.
Movies
Few companies will pay for movies that their employees watch while on company business. Checking the hotel folio is also the way to discover whether an employee has charged a movie to his or her room. If your policy does not cover movies, and most don’t, you will need to have the employee reimburse you for this. While hotels are capable of preparing two bills for a stay and segregating charges at the employee’s direction, it takes a lot of work and time, especially when the employee is trying to check out of the hotel quickly.
Thus, most will leave the movie on the company bill and simply reimburse the firm. Many companies choose to look the other way on this issue as the dollar amount is small and the annoyance associated with trying to straighten it out is not worth the effort. It should be noted that many companies are silent on this issue and while they may say they won’t pay, they do. One can only hope that the employees use some common sense and discretion in their selection of entertainment.
Spouses
Most organizations will not pay for spousal travel unless the spouse of the traveling employee is actively participating in company business. The tax regulations address this issue, as more than one high-powered executive has discovered the hard way. However, if there is no additional charge for a second
person staying in the room—and there rarely is—few organizations object to a spouse (or child or friend) accompanying the traveler.
For more Information:
Travel and Entertainment Best Practices, Payroll Practice Fundamentals, Payroll Management and Accounting, Successful Direct Deposit
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