Travel Expenses: A Chance for Extra Income
The New York Times Magazine profiled the problems with employees’ submissions for travel and entertainment expenses reimbursement. American Express reported that employees spend $156 billion annually on travel and entertainment related to business. Internal auditors at companies listed types of expenses for which employees have sought reimbursement: hairdresser, traffic tickets, and kennel fees.
While the IRS raised the amount allowable for undocumented expenses to $75, most companies keep their limit for employees at $25. One company auditor commented that all taxi cab rides now cost$24.97 and if the company went with the IRS limit, the cab fares would climb to $74.65.
Some of the horror stories submitted by auditors on travel and entertainment expenses submitted by employees:
•One employee submitted a bill for $12 for a tin of cookies. When questioned, he could not explain how it had been used but asked for reimbursement anyway because all he would have to do is "make up” a couple of taxi rides to get it back anyway;
•$225 for three hockey tickets, except that the names on the tickets were the employee’s family members;
•$625 for wallpapering. The employee had included it with her other travel expenses and even had the wallpaper receipt written in a different language in order to throw off any questions; and
•$275 sports jacket submitted as a restaurant bill. The travel office called the number listed on the receipt and asked if food was sold there. The response was, "No, we’re a men’s clothing store.