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Why was a supported employee's expense rejected?
Managers and workspace auditors can decline items directly within a chat thread if information is missing or out of policy. If the item is marked as "Non-Reimbursable," it generally indicates that the item does not meet local tax guidelines for tax-free payouts and will be processed as taxable income via payroll.
What is a Non-compliant expense?
Non-compliant expenses do not meet the local regulations to be considered legitimate business expenses eligible for tax-free reimbursement. These expenses are flagged as non-reimbursable in Expensify and require special handling.
Reimbursement Process: Non-compliant expenses are reimbursed as taxable income. To ensure that the full amount is reimbursed, these expenses are generally grossed up. This means that the amount reimbursed is increased to cover the taxes that will be owed on the reimbursement. Non-compliant expenses will be reimbursed with the monthly payroll.
How to view non-compliant expenses: Since non-compliant expenses are reimbursed as taxable income, they are added in our Global Work Platform as ad hoc payroll items. The net amount can generally be viewed in the Global Work Platform, and the gross amount can be found in the supported employee's payslip.
Note that only supported employees can view their payslips - Company Admins, HR Managers, and PTO Managers do not have access to supported employee payslips in the Global Work Platform
Why does a report say "Non-reimbursable"?
When an expense is marked as "Non-Reimbursable," it means that it is non-compliant and does not meet country requirements as a legitimate business expense. This does not mean that the supported employee will not receive funds for the submitted expense. When an expense is deemed non-compliant, the supported employee will generally receive money back for the costs incurred as a grossed-up bonus in their regular payroll.
Why are expenses grossed up?
Expenses identified as "Non-reimbursable" in Expensify are considered non-compliant with our expense policy. Such expenses are generally subject to a gross-up calculation to cover the appropriate tax obligations and are subsequently added to the employee's payroll. Although these expenses are reimbursed in full to the supported employee, the reimbursement is processed through payroll on a different schedule and may follow a distinct procedure compared to compliant expenses.
Why does an expense report say "Reimbursed outside of Expensify"?
There are two reasons an expense report may be marked as "Reimbursed outside of Expensify".
Reimbursement payouts are issued directly to a supported employee from a Pebl bank account, not through Expensify.
The submitted expense was determined to be non-compliant and will, therefore, be grossed up and paid to the supported employee via their regular payroll.
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