Reimbursement arrangements are agreements where one party compensates another for expenses incurred. These arrangements are common in business settings, allowing employees to receive payment for costs related to work, such as travel or supplies. Typically, employees submit receipts or documentation to their employer to receive reimbursement.
In many cases, reimbursement arrangements are governed by specific policies that outline eligible expenses and the process for submitting claims. This ensures clarity and fairness in how expenses are handled, helping both employers and employees manage financial responsibilities effectively.