Travel expenses

Travel Expenses Explained

Travel expense reimbursement might seem less significant, but it has serious legal implications and should be well understood. In a professional context, there might be situations where employees will have to travel as part of a deal, or signing a contract, or attend a conference. Here, the employees represent the company and travel as part of their profession.

When employees incur work-related travel expenses, it is the responsibility of the employer to reimburse them. For this, the employee should maintain all receipts that correspond to any business-related expense. So this implies that the employee should exercise due care while spending. In some cases, employees will spend unnecessarily or purchase luxury items, hoping the company will pay them back. But the companies are legally obliged to pay only for professional travel expenses.

List Of Travel Expenses

1. Transportation fare (by airplane, car, train, etc.) between the employee’s tax home and the destination, including return.
2. Commute expenses from or to the airport, hotel, or work location. The fuel cost, parking, and toll fee reimbursement can be claimed if the employee uses their personal vehicle.
3. Shipping charges (baggage, etc.)
4. Lodging/accommodation and food expenses.
5. Dry cleaning and laundry services
6. Internet or cellular data charges
7. Tips paid for services.
8. Any other expenses related to the work.

The salary or wage is paid to a worker or employee for their work. A self-employed person, therefore, has neither wages nor salary, but an income nevertheless. Also, workers or employees may have an additional income to their salary. This may include income from capital gains (including securities or interest).

The income of a person is therefore the sum of all of their earnings. At first glance, that may sound somewhat inaccurate in a country comparison, as companies also generate an income. Regardless of size, the company is also owned by individuals. Therefore, the income of the owners increases to the same extent as the income of their companies.