For example, hiring a “flashy” car that’s completely unnecessary and above average costs, is likely to be against policy. If the contractor needs to hire a car rather than take public transport, then a policy should be clear about what type of vehicle is expected to be hired. When a contractor is travelling to a project in their own vehicle, a travel and expenses policy will usually state that mileage will be reimbursed at a specified business mileage rate, e.g. Perhaps the policy indicates that a contractor is expected to use only standard class train travel, or that they should use public transport rather than taxis where possible. Where the contractor is travelling to a customer site or project and needs to use public transportation, a policy should be clear about expectations of what type of transportation is used.
If required to work away from home on a project for a longer period of time, and therefore requiring accommodation, again using any existing system to secure the similar rates to employees and gaining pre-approval would be desirable.īut in cases where this is booked directly, again a policy should detail any limits on lodging costs, perhaps even specifying a limit to hotel star quality e.g. the most economical fare should be chosen. Where contractors are asked to source and book their own travel arrangements separately, a policy should detail clearly what expectations the business has on fares e.g. If required to travel to work away from home on a particular project or customer site, it’s beneficial to give consultants and contractors access to any system your business uses for its own employees, securing the most economical fares similar to those that would be found by its own staff and ensuring that any necessary approvals are gained before booking. One would expect that to include the following: Booking travel Breaches of policy are serious – and could even be fraudulent – so it’s important that any contractors and consultants are made aware of travel and expenses policies before incurring any unexpected costs to the business.Ĭompany expenses and travel reimbursement policies for contractorsĪ company’s travel and expenses reimbursement policy for contractors should cover the same aspects as your employees’ expenses policy. Therefore, for organisations with large volumes of external claimants, using an expenses system that enables non-employees to submit expenses with the same ease as permanent employees is beneficial.Ĭontractors and consultants should be expected to act with honesty and integrity when they follow any company’s expenses policy. For ease of approvals and for finance tracking, it would be beneficial to handle all travel expenses in the same way, on the same system. Companies would need to make a decision as to whether contractors and consultants are reimbursed via the same expenses system as everyone else, or handled separately. In most cases, companies would expect that contractors and consultants follow the same expenses reimbursement policy to employees. But what about contractors or consultants working for the company? What expenses and travel reimbursement policy should be in place for temporary or contracted staff?
#REIMBURSING CONTRACTOR EXPENSES HOW TO#
How to create an expenses reimbursement policy for contractorsĬompanies will usually have an expenses and travel reimbursement policy for employees who spend their own money on company-related activities or purchases. How to create an expenses reimbursement policy for contractors.The best way to track your business expenses.How to estimate business travel expenses.Approaches to corporate travel policy compliance.How can I make my business travel better?.What are the challenges of travelling for business?.How much do companies spend on business travel?.What are the needs of business travellers?.What to include in your business travel checklist.Is there an app to track business expenses?.Best ways to save money on business travel.Why it’s important to review travel expense policies and procedures.How to implement an automated expense management process?.What’s the best expense reimbursement method?.
0 kommentar(er)
