Guide · Updated October 2026
How to write a simple employee expense policy
An employee expense policy should say what is covered, the limits, what needs a receipt, when to submit and who approves. Keep it to one page, and let the software check the limits so managers do not have to.
Why one page is enough
Employees want to know what they can spend, what they need to keep, and when they will be paid back. Managers want to know what to approve without a judgment call every time. Finance wants a rule to point to. A one-page policy covers all three if it answers the questions below and nothing else.
Longer policies get written when a company tries to anticipate every situation. Instead, write the common rules, add "ask your manager first" for the rest, and revise once a year.
The five questions your policy must answer
| Question | Write it like this | Example |
|---|---|---|
| What is covered? | A short list of categories, and what is never covered. | Travel, meals with clients, supplies under $200, software approved by IT. Not covered: alcohol, fines, personal items. |
| What are the limits? | A number per category, per day or per expense. | Meals up to $75 per day. Hotels up to $250 a night, $350 in New York, San Francisco and Boston. |
| What needs a receipt? | A threshold, and the rule for lost receipts. | A receipt for anything over $25. Lost it? Add a note; your manager decides. |
| When do I submit? | A deadline from the expense date, and a monthly rhythm. | Submit within 30 days. Reports are paid with the payroll after approval. |
| Who approves? | The usual approver and when a second one is added. | Your manager. Over $500, the department head as well. Finance always checks last. |
A template you can copy
Replace the figures with your own. Keep the headings; they map to rules the software can check.
Expense policy, [Company], effective [date]
1. What we reimburse. Travel (flights, hotels, ground transport), meals when traveling or with clients, supplies under $200, software approved by [role]. We do not reimburse alcohol, fines, personal items or anything without a business reason.
2. Limits. Meals: up to $75 a day. Hotels: up to $250 a night; $350 in [cities]. Flights: economy. Anything over a limit needs a note and your manager's approval.
3. Receipts. Attach a receipt for every expense over $25. If a receipt is lost, add a note saying what, where and why; your manager decides.
4. Deadlines. Submit expenses within 30 days of the date on the receipt. Reports approved by the [day] are paid with the next payroll.
5. Approval. Your manager approves your reports. Reports over $500 also go to [role]. Finance reviews every report before payment. Nobody approves their own expenses.
6. Questions. Ask [name or address] before you spend if you are not sure.
Turning the policy into rules
The point of a short policy is that the software can check most of it before a report reaches a manager. In Reimgo, each section of the template above becomes a rule or a setting:
- Section 1 becomes your list of categories, with a blocked-category rule for what is never covered.
- Section 2 becomes amount limits per expense, per day or per month, and city caps for hotels.
- Section 3 becomes a receipt-required rule above $25 set to warn, so the employee gives a reason when a receipt is lost.
- Section 4 becomes a submission window of 30 days.
- Section 5 becomes an approval workflow by amount, with finance as the last step and self-approval off by default.
Each rule either warns, and the employee gives a reason the approver sees, or blocks submission. Start with warnings for a month, see what people trip over, then make the clear ones blocking.
A word on tax
In the US, how you reimburse can affect whether reimbursements are treated as wages. Many small companies aim to run reimbursements under what the IRS calls an accountable plan, which broadly expects a business purpose, substantiation such as receipts, and the return of any excess. Your CPA can tell you whether your process qualifies. A clear policy with receipts and deadlines is the starting point either way.
This page is general information about running expenses in a business. It is not tax, legal or accounting advice. Check your own obligations with a qualified adviser.
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