It refers to the payment received by the company to the employee for the expenses they paid on the company’s behalf or an entity related to business houses, food, travel or accommodation fare of an employee. It is not essential to reimburse the payment through cash. The employer or the business entity can use a cheque or bank transfer. In other words, it is a payment that an individual has used to spend on someone else’s benefits. Here are some of the types of reimbursements:
Transportation: It includes the travel charges that the employee has paid for a specific business meet or conference.
Accommodation: The expenses that the employee has used for having a stay for a business meeting.
Meal expenses: The expenses that an employee makes for eating during a business travel or meeting a client.
Miscellaneous expenses: these include everything apart from what the employee has from the above expenses.
