Reimbursement & Payment

Lump-sum reimbursement

One-time payment covering an entire trip's or period's estimated business expenses.

A lump-sum reimbursement is a single payment — before or after the trip — covering all estimated business expenses (fuel, lodging, mileage) in one rounded amount. Easy for finance, but commonly non-accountable and therefore taxable as wages. Useful for short trips where processing per-receipt substantiation costs more than the tax savings.

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