The new Reimbursement and Expense Recovery Bonus Policy and Standard are effective beginning January 1, 2023.
| Policy Name: | Reimbursement and Expense Recovery Bonus |
|---|---|
| Relevant Standard: | Reimbursement and Expense Recovery Bonus Standard |
| Creation Date: | |
| Last Review Date: |
Purpose
Provide guidance on ministry-related expenses that are either directly reimbursable through Reliant’s Ministry Expense
Reimbursement Plan (a.k.a. Accountable Reimbursement Plan) or that qualify for an Expense Recovery Bonus.
Scope
This policy applies to all ordinary and necessary ministry-related expenses incurred by field employees and associates ("together considered field workers") in the course of their work on behalf of Reliant and its ministry partners.
Standards Supporting This Policy
Reimbursement and Expense Recovery Bonus Standard
Policy Statement
This policy provides general guidelines related to Reimbursements and Bonuses for ministry expenses. For more detailed guidance, please refer to the Standard linked in the preceding section.
Reliant employees and associates incur certain expenses in the course of conducting their ministries. In accordance with IRS guidelines, Reliant will generally reimburse field workers for expenses that are reasonable, ordinary, necessary, directly related to the workers’s job and ministry, sufficiently documented, and timely submitted for Reimbursement. These expense Reimbursements (defined as "Reimbursements" in this policy) are typically tax-deductible, meaning they are not considered to be additional taxable wages for the worker. Some workers' expenses do not qualify for expense Reimbursement but may be recovered through an "Expense Recovery Bonus" (ERB, explained further below). Such Expense Recovery Bonuses are treated as additional taxable wages for the worker. Determination of taxable wages and taxes owed to governing authorities is ultimately the responsibility of each individual Reliant field worker in consultation with his or her tax advisor(s).
Reimbursements and Expense Recovery Bonuses related to incurred expenses are subject to the availability of funds in the MTD account for which the field worker is responsible or the project account from which the expense is being reimbursed, in addition to order-of-pay protocols.
Field workers must use discretion and also consider the reputation of the ministry when determining how much to spend on any given expense. Any expense that does not support the ministry of Reliant and does not reflect proper stewardship is considered non-reimbursable and non-recoverable, regardless of the source of funds.
Expenses Generally Allowable for Reimbursement
The following types of expenses may be considered ordinary and necessary reimbursable business expenses under this policy. The Standard linked above provide details on each of these common expense categories. In some circumstances, other expenses may be approved on an exception basis by following Reliant’s exception protocols.
- Travel Costs
- Meals and Hospitality
- Ministry-Specific Social Activities
- Technology and Equipment
- Supplies and Materials
- Professional Development
If funds are ever advanced for expenses, such expenses are subject to the same criteria and documentation requirements as reimbursed expenses, and any unused funds must be timely returned to the ministry.
Expenses Generally Eligible for Expense Recovery Bonus (ERB)
The following types of expenses are generally not reimbursable under IRS guidelines as tax-deductible expenses, but employees (not associates) may be allowed to request a taxable ERB to recover these types of expenses, with appropriate approval. The Standard linked above provide details on each of these expense categories.
- Certain spouse and family expenses
- A portion of the purchase of computers/phones/equipment
- Other expenses specific to International employees
- Other ministry-related expenses not allowable for reimbursement
Documentation Requirements
Proper substantiation of expenditures includes third-party-provided documentation (typically receipts) of date, payee, amount, itemized charges (where applicable), and method of payment.
In addition, documentation should include the names of people that are included in the expenses to be reimbursed and the business purpose of the expenditure.
Form Submission
Please submit requests for expense Reimbursements or Bonuses on the appropriate form, as directed by the Standard linked in the section above, within 2 months of the relevant transaction date. Links to all forms can be found in the Standard for both Reimbursements and Bonuses.
