HomeProductsDocument Management SystemUnderstanding Reimbursement and Its Benefits for Employees

Understanding Reimbursement and Its Benefits for Employees

Usually, in fulfilling the tasks that the company gives, it requires us to spend personal money. As long as the money is used for the company’s benefit, employees can make reimbursements. But what is reimbursement? What should we do to make a reimbursement? See the following article for further explanation.

What is Reimbursement?

Reimbursement is compensation or refund of employees’ personal funds used for the company’s business interests. The one who provides the compensation is, of course, the company. Usually, this cost compensation is related to business travel, including hotel, food, ground transportation, and flight costs. Don’t forget; usually, employees will have different refund budgets according to their position and position.

We need to know the policies that apply when we want to make a reimbursement. Because the company can reimburse not all the money that employees have personally spent. Of course, the company will replace the funds that employees spend because they must have proof of payment, invoices, etc.

Types of Reimbursement

Generally, there are several types of reimbursement. Here are the reviews:

Reimbursement of transportation costs

Employees are assigned to travel both within and outside the city. The money used in the trip is what gets reimbursed. Usually, the costs are in the form of airline tickets, hotel rentals, and other accommodations. We need to remember that the provisions on the compensation policy of each company are different.

Health compensation costs (Medical)

This type of company provides health facilities to its employees. It is usually in the form of health insurance, such as BPJS, and health benefits. Besides, if an employee has a work accident, it is also possible to apply for refund to the company.

Reimbursement of business operations

Finally, sometimes employees also have to spend operational funds that come from personal sources. Of course, you can apply for a reimbursement to replace these expenses. An example usually happens when discussing a client using a cellphone that costs credit, internet access, and many others.

Applying Tips for Reimbursement

In filing a refund, there are several tips for employees who want to do it. Here are some reviews on tips for applying for refund application:

Prepare the required documents

The main requirement is the completeness of the documents before making a reimbursement—documents in the form of invoices, proof of payment, and others. Don’t forget to keep the copy before making a reimbursement. Also, make sure the document is original and stored neatly so that it is easy to find.

Make a reimbursement as soon as possible

Companies usually take a long time to process applications from other employees. For that, do it as soon as possible if you want to reimburse the personal funds used. Because as discussed earlier, companies have different policies in the reimbursement process. Several companies set a time limit for applying for a refund.

Understand the terms and procedures for submitting reimbursement

Like the first point, there are several requirements to make a refund. If these conditions are not met, it will most likely not be able to submit it. Therefore, understand what conditions you need. So later, the refund application is successful, and the company will replace the personal funds.

Check again what you want to submit

We must be careful before applying for reimbursement. Because the personal data that is used and its nature has nothing to do with the company’s needs, it will be considered a fraud. Therefore, it is essential to double-check the funds we want to reimburse before submitting them to the company.

Recalculate the refund

We need to recalculate the refund application that the company has approved. If the company has already paid it, try to recalculate the funds. We can ask the company back if, after submitting a reimbursement, there is a lack of funds.

Read related article: What is Revenue? Definition, Type, and How to Calculate It

Frauds in the Reimbursement Process

Avoid scams such as:

  • Submit a claim for some form of proof of payment that is owned outside the company’s needs
  • Faking expenses or fabricating purchases to claim reimbursement
  • Deliberately increasing the nominal expenditure from the actual value
  • Submit personal expenses as company expenses.
  • Maximizing the use of company credit cards
  • Primary Considerations that Become References in Assessing Fraud in the Reimbursement Process
  • Employee expenses are more significant than the expenses of other employees with the same position
  • Claim twice for the same expense
  • Submission of expense claims that are not related to the company
  • Rounding up expenses, maximizing credit card usage, and so on

Sample Reimbursement Form

1. Example of an operational and transportation reimbursement form

Understanding Reimbursement and Its Benefits for Employees
Source: scrbid.com

2. Example of a health reimbursement form

Understanding Reimbursement and Its Benefits for Employees
Source: pdffiller.com


That’s the discussion about a refund. In essence, it is compensation for the personal money we spend for the benefit of the company. We need to remember that in filing a refund application, there are several things that we need to pay attention to so that the company will approve the refund application that we have submitted.

If your company needs software that can handle all HRM activities, don’t hesitate to contact us. Hashmicro provides software that manages HR processing, from payroll to reimbursement. Click here to try the demo or directly register and cooperate with our company.

Interest in getting savvy tips for improving your business efficiency?

Afkar Azhfar
Full-Time Internship Content Writer at HashMicro. Always explore new things to develop content writing skills.


Please enter your comment!
Please enter your name here

Get FREE Business Software Consultation via WhatsApp


Rachel Panjaitan
Typically replies within an hour

Rachel Panjaitan
Need Help?
Chat with our experts for a free consultation by WhatsApp.
Chat with Us