Reimbursement & Payment

Expense advance

Travel money paid up front, with a duty to substantiate and return any excess.

An expense advance is money paid to an employee before a trip to cover immediate costs — fuel, lodging, mileage. Under an accountable plan the employee must submit substantiation within 60 days and return any excess within 120 days (IRS rule). Without return of excess the full amount becomes taxable wages.

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