Personal Expense
What is Personal Expense?
A personal expense refers to any non-business-related cost incurred during corporate travel or work activities. These expenses are separate from authorized travel costs and are usually the responsibility of the employee.
Common personal expenses include luxury items, entertainment, spa treatments, alcoholic beverages, or souvenirs purchased during a business trip. Companies define personal expenses in their travel and expense policies to ensure clarity and proper reimbursement practices.
Employees are expected to separate personal and business costs when submitting expense reports. Some organizations allow mixed payments but require clear documentation to distinguish reimbursable business expenses from personal ones.
Examples Of Personal Expense
1.
Personal Gifts
An Employee Purchases A Personal Gift During A Business Trip; This Cost Is Not Reimbursable.
2.
Alcoholic Beverages
A Traveler Orders An Expensive Bottle Of Wine With A Business Meal; The Alcohol Portion Is Considered A Personal Expense.
3.
Leisure Hotel Stay
A Corporate Traveler Extends A Hotel Stay For Leisure After A Business Trip, With The Extra Nights Classified As Personal Expenses.
Frequently Asked Questions About Personal Expense
1.
Can personal expenses be reimbursed by a company?
No, personal expenses are generally not reimbursed unless explicitly allowed under special corporate policies.
2.
How should employees handle personal expenses during business trips?
Employees should use separate payment methods or clearly mark personal expenses when submitting expense reports.
3.
Can a company deduct personal expenses from an employee’s paycheck?
Yes, if personal expenses are mistakenly charged to a corporate card, the company may deduct the amount or request repayment.
4.
Are personal expenses taxable if mistakenly reimbursed?
Yes, reimbursed personal expenses may be treated as taxable income for the employee.