Travel and subsistence expenses describe the cost of spending on
business travel
Business travel is travel undertaken for work or business purposes, as opposed to other types of travel, such as for leisure purposes or regularly commuting between one's home and workplace. According to a survey, 88% small business owners e ...
, meals, hotels, sundry items such as laundry (though usually only on long trips) and similar ad hoc expenditures. These reimbursements often have tax and related implications, and vary depending on the country of the business.
An organization may refund or
reimburse
Reimbursement is the act of compensating someone for an out-of-pocket expense by giving them an amount of money equal to what was spent.
Companies, governments and nonprofit organizations may compensate their employees or officers for necessary ...
these costs on the basis of an itemized list, or may conclude that cost of doing so is disproportionately high and instead pay a ''
per diem ''Per diem'' (Latin for "per day" or "for each day") or daily allowance is a specific amount of money that an organization gives an individual, typically an employee, per day to cover living expenses when travelling on the employer's business.
A '' ...
'' ("per day") allowance. This provides a budget from which the traveler may recover their costs. In this case, the traveler may choose to stay in more expensive hotels and pay the additional cost themselves.
See also
*
Business mileage reimbursement rate
*
Per diem ''Per diem'' (Latin for "per day" or "for each day") or daily allowance is a specific amount of money that an organization gives an individual, typically an employee, per day to cover living expenses when travelling on the employer's business.
A '' ...
References
Business terms
Travel
Expense
Accounting terminology
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