Setting clear expectations for employee reimbursement requests

Executive overview

Late reimbursement requests force HR to backtrack on payroll and redo work. A written policy eliminates this by giving employees the rules upfront.

Define what is covered, how to submit, and when. Tie deadlines to payroll processing cycles so employees understand the urgency. Require a sign-off to confirm acknowledgement.

A reimbursement policy works only if employees have read and agreed to it before they incur expenses.

What to include as reimbursable expenses

• Business-related travel (transport, lodging, meals during business activities)
• Employee training or education required for the role
• Smartphone plans when the device is used for work calls, email, or other tasks
• Exclude anything personal, unrelated to business, or not pre-approved by management
• List explicit exclusions — personal entertainment, commuting, luxury items — to prevent disputes

Submission process and deadlines

• Require original receipts, invoices, or proof of purchase with every claim
• Specify the submission method — electronic form or physical form
• Set a rolling deadline: e.g. requests must be submitted within 30 days of the expense
• Tie the cutoff to payroll: e.g. submit by the Friday before payday or wait until next period
• Require manager approval before the request reaches HR

Communicating and maintaining the policy

• Require employees to sign off on the policy — acknowledgement, not just distribution
• Use an HRIS compliance feature to upload the document, track signatures, and send reminders
• Brief new hires on the policy as part of onboarding
• Review the policy annually or whenever payroll processes change
• Reissue for signature whenever the policy is updated