Reimbursable Out-Of-Pocket Costs

AAA

DEFINITION of 'Reimbursable Out-Of-Pocket Costs'

Cash payments that an individual or company incurs on behalf of the company, and that will be refunded sometime in the future. While some of these costs may have personally benefited the employees, companies are willing to repay employees for incurring these expenses, because they come about as a result of performing their job.

INVESTOPEDIA EXPLAINS 'Reimbursable Out-Of-Pocket Costs'

A reimbursable out-of-pocket cost for a sales representative could be a restaurant bill from courting a potential client or the cost of gas to drive to a sales course in a neighboring city.

Most companies have guidelines to help employees determine what expenses are considered reimbursable out-of-pocket costs and which are not. Usually, employees will have to retain receipts and give detailed explanations for their purchases.

RELATED TERMS
  1. IRS Publication 463: Travel, Entertainment, ...

    A document published by the Internal Revenue Service that provides ...
  2. Convention Expenses

    Any travel expenses incurred while at a business convention. ...
  3. Home Office Expense

    Expenses incurred from the operation of a business or the performance ...
  4. Expense

    1. The economic costs that a business incurs through its operations ...
  5. Out-Of-Pocket Expenses

    An expense incurred and paid for by an individual for personal ...
  6. Write-Off

    A reduction in the value of an asset or earnings by the amount ...
RELATED FAQS
  1. If I pay for a course to learn about trading can I write some of it off?

    There are some investing costs that can be written off each year, even if you aren't a day trader. The general rule in determining ... Read Full Answer >>
  2. What are employee share purchase plans?

    An employee stock purchase plan (ESPP) offers an incentive for employees to participate in their company's profitability ... Read Full Answer >>
  3. Why should investors research the C-suite executives of a company?

    C-suite executives are essential for creating and enacting overall firm strategy and are therefore an important aspect of ... Read Full Answer >>
  4. What is Substantial Gainful Activity (SGA) and why is it important?

    Substantial gainful activity (SGA) is what the Social Security Administration (SSA) measures to determine work, income and ... Read Full Answer >>
  5. How does the always be closing (ABC) strategy benefit a salesperson's sales funnel?

    It is good practice in sales to always be closing, because it's common for a salesperson's sales funnel to be leaky. When ... Read Full Answer >>
  6. How does the Affordable Care Act affect moral hazard in the health insurance industry?

    To see how the Patient Protection and Affordable Care Act, or "Obamacare," affects moral hazard in the health insurance industry, ... Read Full Answer >>
Related Articles
  1. Retirement

    Tax Tips For The Individual Investor

    We give you seven guidelines to help you keep more of your money in your pocket.
  2. Retirement

    How Non-Qualified Deferred Compensation Plans Work

    These tax-advantaged retirement savings plans have their pros and cons, and employers and employees must follow strict guidelines.
  3. Personal Finance

    The Most Competitive Industries For New Graduates

    Graduating from college is an exciting yet uncertain time for many students, as the overall job market is becoming more complex as time goes on.
  4. Entrepreneurship

    Get the Best Freelance Rates for Your Work

    Smart strategies for estimating costs, researching fees, pricing projects and getting your rate for a range of clients.
  5. Economics

    Top 10 Cities For Grads To Get Jobs

    A look at latest employment stats.
  6. Investing

    What are Preference Shares?

    Preference shares, also referred to as preferred shares, are equity shares that give the shareholders certain rights ahead of common shareholders. For instance, when the corporation declares ...
  7. Personal Finance

    What Is The Average Salary For An MBA Graduate?

    An MBA is often described as a surefire way to increase one's salary. It turns out that compensation for MBA graduates is actually more complicated.
  8. Personal Finance

    Which Is Better: A Salary or Hourly Wages?

    A salary may be the more prestigious option – but you could take home more being paid by the hour.
  9. Stock Analysis

    3 Things I Learned From The Container Store's 10K

    Since going public at the end of 2013, The Container Store's shares have fallen by roughly half their value. But not all is not lost.
  10. Insurance

    Is Your Employer-Provided Life Insurance Coverage Enough?

    Learn about the several potential problems involved with obtaining life insurance through your employer.

You May Also Like

Hot Definitions
  1. Fracking

    A slang term for hydraulic fracturing. Fracking refers to the procedure of creating fractures in rocks and rock formations ...
  2. Mixed Economic System

    An economic system that features characteristics of both capitalism and socialism.
  3. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  4. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  5. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  6. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
Trading Center