Policy handbook
Copy, edit and adopt. Adjust the limits to your own spend history before rollout.
1.0Purpose and scope
This policy covers travel and business expenses for all corporate and field employees, including district and regional managers who visit stores, merchants and buyers who meet vendors, and teams who staff trade shows. It also sets the rules for gifts and hospitality offered by vendors, because buying decisions must stay independent. Store-level petty cash follows the store operations manual, not this policy.
2.0Roles and approvals
Regional directors approve district managers' expenses and travel plans, and merchandising VPs approve buyers' travel. Accounts Payable reviews every report for receipts and coding, and the controller approves reports above $3,500. The merchandising compliance team reviews all vendor gift and hospitality disclosures. No one may approve their own expenses or the expenses of someone above them in the reporting line.
3.0Store visits and district travel
District managers plan store visit routes monthly so travel can be grouped and overnight stays minimized. Store visits within 250 miles each way are made by car. Overnight stays are reimbursable when the route covers stores more than 150 miles from home on consecutive days. Each visit must be logged with store number, date and purpose so mileage and hotel nights tie to the route plan.
4.0Booking and lodging
Flights, hotels and rental cars must be booked through the company travel tool, using negotiated chain rates in store markets. The company will reimburse a standard room up to the nightly cap, including taxes, with the itemized folio attached. Trade show hotels are booked through the marketing team's room block. Rooms booked outside the block for a trade show need marketing approval.
5.0Meals
Employees traveling overnight may spend up to the daily meal allowance on their own meals. Store visit day trips without an overnight stay do not qualify for meal reimbursement. Meals with partners, landlords or wholesale buyers are reimbursed up to $88 per attendee, with names and business relationship listed. Meals bought for store teams during visits follow the store recognition budget and need the store number.
6.0Alcohol
Alcohol is reimbursable only with partner, landlord or wholesale buyer meals and at approved trade show receptions, up to two drinks per person, itemized on the receipt. Alcohol is never reimbursable during a store visit, at a store team meal or on solo travel. Employees who drive the next morning on a store route must follow the safe driving policy.
7.0Ground transport and mileage
Personal vehicle use for store visits is reimbursed at the IRS standard mileage rate, with each trip logged by store number. District managers on the car allowance program receive a monthly allowance under that program's terms and log business miles for the records it requires. Commute miles are personal. Rental cars should be compact, and fuel is reimbursed at the pump receipt.
8.0Trade shows
Trade show attendance is approved by the merchandising VP, who allocates badges by category. Attendees are reimbursed for registration, airfare, up to four hotel nights and meals at the daily allowance. Vendor-hosted dinners and parties at trade shows must be disclosed to merchandising compliance. Samples collected at shows remain company property and are logged by the merchandising assistant for each category.
9.0Gifts offered by vendors
Buyers, merchants and anyone who influences purchasing may accept gifts from a vendor only up to $50 in total per year, and must log each gift with merchandising compliance within five business days. Cash, gift cards, travel paid by a vendor and personal discounts are never accepted. Vendor-paid meals are allowed only when they are occasional, modest and include a business discussion, and they must be disclosed.
10.0Gifts given and personal expenses
Gifts given to landlords, partners or wholesale customers are limited to $25 per recipient per year and must be logged. Personal expenses, including companion travel, upgrades, personal shopping during store visits and in-room entertainment, are not reimbursable. Merchandise bought at a store for competitive research must be returned or logged with the category team, and personal purchases may not be included on reports.
11.0Receipts, timing and returning excess
Expenses must be submitted within 60 days after they are paid or incurred, with amount, date, place and business purpose, plus store numbers for store visits. Itemized receipts are required for all lodging, any expense of $75 or more and all rental fuel. Advances for sourcing trips are issued no more than 30 days before travel, and unspent amounts must be returned within 120 days after the expense was paid or incurred.
12.0Audit, pushback and consequences
Accounts Payable reviews every report, and every flag raised by audit software is reviewed by a person, including mileage that does not match the store route or a meal claimed on a day trip. The software may draft clarification requests citing the clause involved, but finance approves each message before it is sent. Undisclosed vendor gifts are referred to merchandising compliance and may lead to discipline.
Recommended limits
| Category | Limit | Note |
|---|---|---|
| Domestic hotel (per night) | $184 in most store markets; $261 in New York, Los Angeles and Chicago | District managers with recurring routes should use the negotiated chain rate. |
| International hotel (per night) | $248 per night for sourcing trips | Factory visits in sourcing regions often have lower supplier-recommended hotels. |
| Daily meals (traveling) | $71 per full travel day | Store visit day trips with no overnight stay do not qualify. |
| Client meal (per attendee) | $88 for partner, landlord and wholesale buyer meals | Vendors may not pay for buyers' meals; see the vendor gift row. |
| Domestic airfare | Economy; book 21 days ahead for planned store tours | Driving is expected for store visits under 250 miles each way. |
| Personal vehicle mileage | IRS standard mileage rate, or the car allowance program for district managers | Managers on a car allowance log business miles for the company's records. |
| Ground transport | Standard ride-share or compact rental | Trade show shuttles and transit are expected in convention cities. |
| Alcohol | Two drinks with partner meals; never during store visits | Trade show receptions follow the event budget. |
| Business gifts | $25 per recipient per year given (IRC § 274(b)); $50 per year accepted from any vendor | Gifts accepted from vendors are logged with the merchandising compliance team. |
| Trade show attendance | Registration plus four nights maximum; booth staff per marketing budget | Badges are allocated by the merchandising VP. |
| Receipt required at | $75 (IRS threshold); every hotel folio and fuel receipt | Fuel receipts are needed only for rentals, not personal vehicles. |
IRS Accountable Plan clauses
Keep these in the handbook so reimbursements stay excluded from wages under IRC § 62(c) and Treas. Reg. § 1.62-2.
- A1The company reimburses only expenses with a business connection to services performed for the company, such as a logged store visit or approved trade show, as Treas. Reg. § 1.62-2 requires.
- A2Each expense must be substantiated with amount, time, place and business purpose within 60 days after it is paid or incurred, meeting the fixed-date safe harbor in Treas. Reg. § 1.62-2(g)(2).
- A3Mileage claims must be supported by a log of date, destination and business purpose recorded at or near the time of travel, which Treas. Reg. § 1.274-5 treats as adequate records.
- A4Itemized receipts are required for every lodging expense and any other expenditure of $75 or more, as Treas. Reg. § 1.274-5(c)(2)(iii) provides.
- A5Advances exceeding substantiated costs must be returned within 120 days after the expense is paid or incurred, or they are included in W-2 wages subject to withholding and FICA.
Common pitfalls in retail & consumer
- Paying meal allowances for store visit day trips. Meal money without an overnight stay is generally taxable wages, not a tax-free reimbursement.
- Accepting mileage claims that do not tie to store numbers. Without a route log, a district manager's 1,317 monthly miles cannot be checked against the stores actually visited.
- Letting buyers accept vendor dinners without disclosure. Even modest hospitality can look like influence on a buying decision when it is not on record.
- Paying a car allowance and mileage reimbursement for the same trips. Managers on the allowance program should not also claim per-mile reimbursement for routine store routes.
- Treating competitive shopping purchases as personal expenses that stay with the employee. Those items are company property and should be returned or logged.
Questions
Not for routine store visits covered by the allowance. The allowance is meant to cover those costs. Mileage reimbursement applies only to trips outside the normal district, such as a temporary assignment to cover another region, and only with regional director approval. Paying both for the same miles doubles the cost and complicates the tax treatment of the allowance.
Any item of value given by a vendor to an employee who influences purchasing, including holiday gifts, branded merchandise above promotional value and tickets. Occasional modest business meals with a business discussion are disclosed but tracked separately. Product samples supplied for evaluation are company property and do not count, but they must be logged with the category team.
IRS rules generally treat meal reimbursements on trips without an overnight stay as taxable wages, so paying them through expense reports would understate payroll taxes. Store teams are encouraged to keep visits short or plan lunch around store recognition events, which are budgeted separately. Overnight routes do qualify for the daily meal allowance.
Samples collected from vendors at a show remain company property and are logged by the category's merchandising assistant with the vendor name and approximate value. Giveaway items the company hands out from its own booth follow the marketing budget. Neither should appear on an individual expense report, and samples should never be taken home for personal use.