What does a T&E policy look like?
To follow widely regarded best practices, your travel and expense policy should cover:
- Allowable business purposes for travel
- Booking tool and process (for air travel,, hotel rooms, public transportation, and car rental)
- Basic spending guidelines for each category including details of eligibility for upgrades to
business class or first-class airfaresBest practices for reimbursable expenses,including necessary supporting documentation (for food, ground transportation, and other small expenses) - Examples of non-reimbursable expenditure e.g. personal entertainment and policies for alcoholic beverages and non employees joining business trips for leisure purposes.
- The disciplinary action that will be taken if business travelers fail to comply with your policy
A T&E policy needs to clarify three elements for business travelers. First, the company policy around what business reasons will be acceptable for approving a work trip.
Secondly, the process for booking travel arrangements, including what travel expenses the employee will need to get approved first. Finally, the policy should outline budgets allowed for different business travel related expenses and the consequences for deviating from these guidelines.
T and E policies also state tax obligations, reimbursement processes and give an overview of expense management. Policies may vary depending on your business home base and destination of travel.
For example, international travel may rack up credit card surcharges for U.S. employees —tiny details like this need to be considered in a T and E policy.
Your travel and expense policy might consist of a document to teach travelers what
tool to use for travel booking
, how to file an expense reimbursement, and their
per diem amount
. But to optimize your corporate travel, integrating your policy into the latest tech tools can help you automate many of the processes.