Are receipts always required?

Most agreements require itemized receipts to support business purpose and amount. Exceptions for small-dollar or per diem items should be explicitly stated in the policy and documented.

Can reimbursements be taxable?

Reimbursements may be taxable if the arrangement fails accountable plan rules or lacks proper documentation. Employers should follow IRS guidance on accountable versus nonaccountable plans.

How long to keep records?

Retain reimbursement records at least three years after filing for IRS purposes; retain longer where HIPAA, SEC, or state rules require extended periods.

Is eSignature acceptable?

Yes. Electronic signatures are legally enforceable under ESIGN and UETA for most contracts; ensure intent, consent, attribution, and retention are documented.

When is notarization needed?

Notarization is rarely required for routine reimbursement agreements, but state-specific requirements apply if the agreement includes sworn statements or affidavits.

How to correct a submitted claim?

Submit an amendment or corrected claim with a clear explanation and supporting documents; route it through the same approval workflow so finance can update records and payments.

Electronic Signature
Templates
HR
Employee Reimbursement Agreement

Employee Reimbursement Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

EMPLOYEE REIMBURSEMENT AGREEMENT

Identification of Parties

This Employee Reimbursement Agreement (the Agreement) is entered into by and between:

Employer Name Employer Address Employee Name Employee Address

Phone:

Email:

Position Information

Job Title Department Reporting Manager

Start Date:

Salary / Rate:

Recitals and Purpose

Employer agrees to reimburse Employee for reasonable, necessary business expenses incurred by Employee while performing duties on behalf of Employer, subject to the terms, limits, documentation and approval requirements set forth in this Agreement.

Eligible Expenses

Eligible expenses include business travel, lodging, meals (subject to per diem and reasonableness), ground transportation, client entertainment when pre-approved, and other reasonable expenses directly related to the performance of assigned duties.

Pre-approved Categories (check all that apply)

Travel (airfare, rail) Lodging Meals Ground transportation (taxi, rideshare) Client entertainment

Other Eligible Expenses (describe)

Pre-Approval and Approvals

All expenses in excess of the per-occurrence threshold require written pre-approval from the Reporting Manager prior to commitment. Manager approval must be retained with the submission.

Pre-approval Required Over:

Manager Name for Approval:

Documentation and Submission

Employee must submit itemized receipts, proof of payment, and an expense report for each reimbursement request. Incomplete submissions may be rejected. Digital copies of receipts should be submitted according to Employer's record retention procedures.

Typical Required Documentation

Time to Submit After Expense:

Processing Time (days):

Reimbursement Rates and Limits

Reimbursements will be made at the rates and subject to the caps set forth below. Employer reserves the right to update rates with notice.

Per-diem Rate (meals):

Per-incident Cap:

Overpayment, Repayment and Setoff

If an overpayment is discovered, Employee must promptly repay Employer. Employer may recover overpayments by payroll deduction or other lawful means, subject to applicable law. Employee agrees to cooperate with reconciliation and repayment arrangements.

Repayment Terms

Tax Treatment

Reimbursements made in compliance with Employer policies and substantiated by required documentation will not be treated as taxable income to the Employee. Any reimbursements that are not substantiated or that exceed policy limits may be treated as taxable compensation.

Audit and Records

Employer or its designee may audit expense submissions and supporting documents. Employee shall retain original receipts for the period required by Employer policy and cooperate with any audit or investigation.

Confidentiality and Data Protection

Information contained in expense reports is confidential and will be used only for business, accounting, tax and audit purposes. Employee consents to Employer's processing of personal data for reimbursements consistent with Employer policy and applicable law.

Termination and Effect

Upon termination of employment, Employee must submit all outstanding reimbursement requests within the submission period set forth above. Employer may withhold final payments to effect reimbursement reconciliation in accordance with law.

Governing Law and Dispute Resolution

This Agreement will be governed by the laws of the jurisdiction indicated below. Disputes shall be resolved by the dispute resolution procedure selected by Employer policy or as otherwise agreed in writing.

Governing State:

Employee Acknowledgments and Authorizations

By signing this Agreement, Employee acknowledges having read and understood the reimbursement policy, certifies that all submitted expenses are true, incurred for legitimate business purposes, and authorizes Employer to verify expense information and contact relevant third parties for substantiation.

Authorization to Contact Previous Employers and Conduct Background Checks

Employee hereby authorizes Employer to contact prior employers and references for verification of employment history related to this Agreement and to conduct background checks as permitted by law.

I authorize background checks and contact of prior employers for verification of employment history and references.

Employment History

Provide at least two prior employers.

Employer 1 - Company Name

Title:

Dates Employed: From To

Responsibilities Reason for Leaving Employer 2 - Company Name

Title:

Dates Employed: From To

Responsibilities Reason for Leaving

Education

Highest Degree Institution

Graduation Date:

References

Provide three professional references:

Reference 1 - Name

Phone:

Email:

Relationship Reference 2 - Name

Phone:

Email:

Relationship Reference 3 - Name

Phone:

Email:

Relationship

Legal Disclosures

At-Will Employment: Nothing in this Agreement alters the at-will nature of Employee's employment with Employer, unless a separate written agreement signed by authorized representatives expressly provides otherwise.

Equal Opportunity Statement: Employer is an equal opportunity employer. Reimbursement decisions will be made without regard to protected characteristics and in accordance with applicable law.

Expense Claim Example Entry

Expense Description: Date Incurred: Amount:

Employee Certification

I certify that all information provided in connection with any expense reimbursement request under this Agreement is true, accurate and complete to the best of my knowledge, and that expenses claimed were incurred in the performance of my duties for Employer and conform to Employer policy.

I certify the above statement and agree to comply with the terms of this Agreement.

Miscellaneous Provisions

Entire Agreement: This Agreement constitutes the entire understanding between the parties regarding reimbursement and supersedes prior agreements. Amendments must be in writing signed by authorized representatives of Employer and Employee.

Severability: If any provision of this Agreement is found invalid or unenforceable, the remaining provisions will remain effective to the fullest extent permitted by law.

Employer Printed Name:

By:

Date:

Employee Printed Name:

By:

Date:

What an Employee Reimbursement Agreement Is

An Employee Reimbursement Agreement is a written contract that sets out how and when an employer will reimburse workers for out-of-pocket business expenses. It defines eligible expense types, documentation and timing requirements, approval workflows, tax treatment expectations and the effective date of reimbursement obligations. The agreement helps both parties avoid disputes by specifying receipts, submission deadlines, allowable amounts, and any per diem or mileage rates. It can be a standalone document or part of an employee handbook, and it supports internal controls and auditability of expense programs.

Why a Clear Agreement Matters

Having a formal Employee Reimbursement Agreement reduces ambiguity, protects employer tax treatment under an accountable plan, and sets clear expectations for employees about required receipts, submission timing, and approval steps.

Who Typically Uses This Agreement

The agreement clarifies roles and reduces processing errors by aligning employee submissions with accounting and tax procedures.

Human resources and payroll teams that administer expense policies and verify compliance with company rules and tax requirements.
Finance and accounts payable staff who process reimbursements, reconcile receipts, and maintain audit trails for tax and internal controls.
Employees who incur business expenses while traveling, entertaining clients, or purchasing supplies for company use and need clear submission instructions.

Representative Signatories

HR Manager

An HR Manager typically approves policy eligibility, communicates submission procedures to staff, and coordinates any policy updates. They ensure the agreement aligns with company handbook practices and interacts with payroll for proper reimbursement timing.

Finance Director

A Finance Director oversees controls, verifies tax treatment under an accountable plan, and sets approval thresholds. They review high-value claims, implement audit processes, and ensure documentation meets regulatory and internal audit standards.

Core Elements to Include

A professional Employee Reimbursement Agreement should be concise but cover essential administrative, financial, and compliance items so reimbursements are timely, auditable, and tax-consistent.

Eligible Expenses

List categories such as travel, meals, mileage, lodging, supplies, and client entertainment with clear limits and exclusions.

Documentation Required

Specify receipts, itemized invoices, mileage logs, and any digital submission formats required for proof.

Submission Deadlines

Define submission windows (for example, within 30 or 60 days of expense) and consequences for late claims.

Approval Workflow

Describe approvers, escalation steps, and electronic routing used for verification before payment.

Tax Treatment

State whether reimbursements follow an accountable plan and any reporting obligations for nonaccountable items.

Repayment Conditions

Include repayment obligations for advances, errors, or reimbursements made in mistake or fraud.

Step-by-Step: Submitting a Reimbursement

Follow these steps to prepare and submit an expense claim that meets agreement requirements and moves quickly through approval.

01

Collect Receipts: Gather original itemized receipts and any relevant logs before submission.
02

Complete Form: Fill required fields accurately and attach receipts in the specified file format.
03

Route for Approval: Send the submission to the designated approver via the stated workflow or eSignature platform.
04

Receive Payment: Finance processes approved claims per payroll schedule or accounts payable cycle.

Configuring an Online Reimbursement Workflow

Typical online workflows define fields, approvers, and automation rules to reduce manual handling and speed payments.

Field	Configuration
Employee Name	Auto-detect from SSO or require manual entry
Attachment Type	Allow PDF and JPEG; enforce minimum resolution
Approval Rule	Auto-route by cost center or manager hierarchy
Payment Trigger	Release on final approval or payroll run

What Digital Submission Requires

Confirm retention, encryption, and access controls meet internal policy and any regulatory requirements before accepting digital submissions.

File Formats: PDF | JPEG | PNG
Authentication: Email link, SMS code, or SSO
Integrations: Payroll and ERP connectivity

Routing and Submission Flow

Understanding routing helps employees know where claims go and how approvals are applied before payment.

Initiate Claim: Employee completes form and uploads receipts.
Manager Review: Manager verifies purpose and budget before approving.
Finance Verification: Finance confirms account coding and tax treatment.
Payment Issued: Approved claims are paid on schedule and logged.

Key Timing and Tax Deadlines

Track both internal submission windows and federal or reporting deadlines to avoid penalties and preserve tax treatment.

Submit Expenses:

Typically within 30 to 60 days of the expense; late submissions may be denied.

I-9 Retention:

Retain I-9 forms for 3 years after hire or 1 year after termination, whichever is later.

W-2 and 1099 Timing:

Issue W-2 and any relevant 1099 forms to recipients by January 31 each year.

Accountable Plan Timing:

Maintain records showing timely submission and business purpose to qualify under IRS accountable plan rules.

Internal Payment Cycle:

Payments typically processed on the next payroll or AP run following final approval.

Common Mistakes to Avoid

Submitting scanned receipts with missing itemization, which often causes requests for more information and payment delays.
Using nonstandard date formats or omitting expense dates, making it difficult to verify eligibility within submission windows.
Failing to route claims to the correct approver, which stalls approval and can lead to duplicate or rejected payments.
Claiming personal expenses or unclear business purpose, which may require repayment or trigger tax reporting.

Penalties and Operational Risks

Tax Reclassification: Improper documentation can cause reimbursements to be treated as taxable wages, affecting withholding and employer taxes.

Backup Withholding: Missing or incorrect TIN information may trigger 24% backup withholding under IRS rules.

I-9 Violations: Failing to retain required employment records can result in penalties from DHS.

Fraud Exposure: Weak controls increase risk of fraudulent claims and potential financial loss.

Late Reporting: Delayed or incorrect information returns (W-2/1099) can create IRC §6721 penalties for employers.

Operational Delay: Poorly defined workflows create manual rework and longer processing cycles.

eSignature Pricing Comparison for Reimbursement Workflows

Compare typical vendor starting prices and feature availability relevant to handling Employee Reimbursement Agreements and electronic submissions.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	No	No	Yes, limited	Yes, limited
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Real-World Examples

Examples show how different organizations structure reimbursement agreements to meet operational and compliance needs.

Regional Consulting Firm

A professional services firm standardized a 30-day submission window with itemized receipts

required manager digital approval
The policy reduced processing time and produced a consistent audit trail for client billing and tax records.

Health Clinic Network

A clinic system adopted HIPAA-safe submission procedures for travel and supply expenses

required BAA for the eSignature vendor
The approach preserved patient privacy while speeding reimbursements to clinicians.

Practical Tips for Accurate Completion

Applying standardized practices reduces rework and supports consistent accounting and tax treatment.

Require Itemized Receipts

Insist on itemized receipts rather than credit card statements so approvers can verify business purpose and apply correct tax treatment.

Set Clear Deadlines

Use a consistent submission window such as 30 or 60 days to encourage timely claims and simplify accrual accounting for outstanding reimbursements.

Automate Coding

Integrate expense categories with your accounting system to automatically populate GL accounts and reduce manual entry errors.

Retain Audit Trails

Ensure digital submissions capture signer identity, timestamp, and IP address to support attribution and resolve disputes efficiently.

Frequently Asked Questions

Answers to common questions about completing and enforcing an Employee Reimbursement Agreement.

Need help? Contact support

Are receipts always required?
Most agreements require itemized receipts to support business purpose and amount. Exceptions for small-dollar or per diem items should be explicitly stated in the policy and documented.
Can reimbursements be taxable?
Reimbursements may be taxable if the arrangement fails accountable plan rules or lacks proper documentation. Employers should follow IRS guidance on accountable versus nonaccountable plans.
How long to keep records?
Retain reimbursement records at least three years after filing for IRS purposes; retain longer where HIPAA, SEC, or state rules require extended periods.
Is eSignature acceptable?
Yes. Electronic signatures are legally enforceable under ESIGN and UETA for most contracts; ensure intent, consent, attribution, and retention are documented.
When is notarization needed?
Notarization is rarely required for routine reimbursement agreements, but state-specific requirements apply if the agreement includes sworn statements or affidavits.
How to correct a submitted claim?
Submit an amendment or corrected claim with a clear explanation and supporting documents; route it through the same approval workflow so finance can update records and payments.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now