Payroll
Reimbursement
A reimbursement repays an employee for money spent on the company's behalf, against a receipt and within policy limits.
Travel, fuel, phone, medical and client-entertainment claims are filed with receipts, checked against category limits, approved by a manager and paid either through payroll or as a separate transfer.
Reimbursements of actual expenses are not salary and are not taxed; fixed allowances paid without proof are.
In Indian payroll
The line between a tax-free reimbursement and a taxable allowance is the receipt. Claims filed from a phone with the photo attached keep that line clean for the auditor.
What is Reimbursement?
A reimbursement repays an employee for money spent on the company's behalf, against a receipt and within policy limits.
Why does Reimbursement matter in Indian payroll?
The line between a tax-free reimbursement and a taxable allowance is the receipt. Claims filed from a phone with the photo attached keep that line clean for the auditor.
Related terms
In Kuzhu
The Expenses & Reimbursements module in Kuzhu is where Reimbursement is handled, on the same employee record as everything else.
WhatsApp us