Expense Reimbursement Policy

Accountable Plan for Expense Reimbursement


This policy establishes guidelines for the operation of an accountable expense reimbursement plan pursuant to Treasury Regulation § 1.62-2 based upon the following terms and conditions:

  1. Any person now or hereafter employed by any Schuster entity (hereafter, “the Company”) shall be reimbursed for any ordinary and necessary business expense paid or incurred by the employee in connection with the performance of services as an employee of the Company but only if the expenses are adequately substantiated as described below.
  2. Under no circumstances will the Company reimburse employees for business or professional expenses incurred on behalf of the Company that are not properly substantiated. The Company and its employees understand that this requirement is necessary to prevent our expense reimbursement plan from being classified as a “nonaccountable” plan.
  3. In the same way that the Company can choose vendors and only authorize specific expenses, the Company reserves the right to limit eligibility for reimbursements to only those employees who have received approval to incur expenses, therefore employees should verify eligibility for reimbursements in advance of incurring expenses.
  4. All expenses must be substantiated within thirty (30) days which is, for the purposes of this section, determined to be a reasonable amount of time.
  5. In general, to substantiate an expense, employees must provide to the Company adequate records of:
    1. The amount of the expense;
    2. The date and time of the expense;
    3. The business purpose of the expense;
    4. Substantiated backup for the expense (i.e. original receipts); and
    5. The location/project where the expense applies (as applicable)
  6. When expenses are paid or incurred in connection with business entertainment, amusement, or recreation, the employee must also  provide adequate records showing the place of any such entertainment, amusement, or recreation along with a description of the business relationship to the Company of any person entertained as well as an itemized receipt for any and all expenses.
  7. In lieu of reimbursing an employee for actual expenses paid or incurred in connection with transportation costs, the Company may choose to pay a mileage allowance, based upon actual miles traveled. In addition, when the business travel is away from home, the Company may choose to pay a per diem allowance for meals and lodging in lieu of actual expenses. When a mileage allowance is provided, the employee must substantiate the number of business miles and the date, time, and purpose of the expense.  Similarly, when a per diem allowance is provided, the employee must substantiate the time, place, and business purpose of the business travel.
  8. Under certain circumstances, the Company may advance funds to an employee to defray future business expenses. Any advance will generally be made within thirty (30) days of when the employee is expected to pay or incur the expense. In addition, the employee must return, within a reasonable time, any amounts in excess of substantiated expenses. For purposes of this section, amounts returned within 120 days after the expense is paid or incurred will always be deemed to have been returned within a reasonable time.
  9. Reimbursements will be reviewed by office staff and must be approved by authorized purchase agents.
  10. Attempts at defrauding the company through this program (including submission of duplicate receipts) will result in removal from eligibility for reimbursements as well as other disciplinary action up to and including termination of employment.