Not all employees have a desk job. Some like those working in sales or marketing have to regularly step out in the field or travel to different parts of the country to meet clients and hit targets.

Some organizations encourage employees to draw a certain amount of money from the offices to meet their expenses before embarking on the trip. On the other hand, some companies pay back the amount spent by the employee afterward. For this, the employee had to submit a detailed account of expenses along with a reimbursement form. It is a special type of employee forms.

What is an Expense Reimbursement Form?

Similar to mileage reimbursement form, an expense reimbursement form is a standard template used in several companies by the employees seeking a refund for the amount spent on behalf of the company. Based on the details mentioned in the form and adherence to the agreement between the employer and the employee, the company reimburses the amount.

Having a standardized form ensures that all the information is listed in a certain pattern, irrespective of the employee submitting it. This also makes it easier for the accounting department to dispose of all the requests efficiently.

What to Include in an Expense Reimbursement Form?

An expense reimbursement form template must include the following heads:

  • Standard employee information like name, designation, reporting manager, etc.
  • Itemized list of all the expenses made by the employee during his/her business trip or meetings etc. This must include the date on which the said expense occurred, payment method (credit/debit card or cash) used, and the purpose of the expenditure.
  • A summary of expenses along with the sum of the total amount to be reimbursed.
  • Original receipts

Why are Expense Reimbursement Forms Important?

There will be a lot of instances where an employee had to make an out-of-pocket expense to either cover his/her travel and lodging or for an impromptu lunch with the client. Reimbursement forms are important to ensure that employees do not end up taking that load on themselves. It also helps the organization in keeping a meticulous record of all the expenses being carried out and prevent any frauds from happening.

It will allow the accounting team to keep track of the money actually spent vis-à-vis the amount reimbursed, therefore helping to ensure that the employee gets his/her due.

How to Complete an Expense Reimbursement Form?

Filling out an expense form is rather straightforward and easy. Here is what all you need to include in your form:

  • Employee Details – Fill in all the details like name, designation, date, name of the organization and such.
  • Expense Details – In the table given in the form, furnish all important details regarding the expenses you want to be reimbursed. These include the date and time when the expense occurred, the payment mode used for making the payment, and a note of all the heads under which expenses were incurred as well as your signature on the form which tells the employer that the information provided by you is accurate and can be relied on.
  • Punch all the receipts that you have gathered along with the forms. Most organizations do not accept a reimbursement form without a valid payment receipt/invoice.
  • Once the form is completed in all the manner possible, verify the details and submit the form with the concerned department within the stipulated time.

FAQs

How to create an employee reimbursement form?

You do not have to create a separate reimbursement form. You can simply pick the one used by your organization. If your organization does not have a standardized format, you can download online from the several options available at CocoSign.

How to apply for reimbursement if my organization does not have a reimbursement form?

You can either download a reimbursement form from CocoSign, or you can write a letter to your accounts team detailing all the necessary information like total expenditure, heads under which the expense occurred, date of the expense, etc.

What is the difference between an expense claim form and an expense reimbursement form?

Expense reimbursement forms and expense claim forms are the same. They are used to document the expenses against which the organization or the employer will reimburse the employee.

Do I need to fill in the details of the payment receipt in the form?

No. But you must attach all the original receipts of the payments done by you for which you want to be reimbursed.

For what duration should the expense records be kept safe?

As mandated by the IRS, both the employee and the employer must keep a record of all the expense reports submitted for three years. These reports come in handy during the time of audits.

What is considered a reimbursable expense?

As mentioned in detail in the Form 1040 (Schedule C), Part II of IRS, the following expenses are reimbursed:

  • The cost incurred due to the advertising of an employee’s activities.
  • Purchase of office supplies including but not limited to pens, pencils, paper, printer, etc.
  • Payment done against the repairing and maintenance cost of office machines.
  • Any tax paid while on work such as toll tax, sales tax, etc.
  • Expenses that occurred during official travel, including lodging, meals, transportation, etc.
  • Bills paid for the use of utilities such as mobile phone, software, etc.

If you are looking for a readymade and strategically crafted reimbursement form, visit CocoSign. You can download from the several different templates available with us.

Disclaimer

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