Traveling as a reimbursed employee/contractor

[riparian]

The government is paying my way to speak at a conference! The rules all seem really weird and last minute but I can get reimbursed up to $70/day for meals and incidentals.

Obviously I don't want to cheat, but I really have no idea how this sort of thing is done. What's incidental? A movie? Tylenol?

I know people have shared tips for making the best use of these things before, but I don't think there's a thread for the topic yet.

[saving-10-years]

UK perspective but these could include any things that were needed. Movies (esp PaytoView movies of an 'adult' nature (e.g. http://news.bbc.co.uk/1/hi/7970731.stm) would be frowned on. From that link the claiming for things is easiest if MPs can show that they are 'used wholly, exclusively and necessarily to perform their duties'. This was MPs husband who incurred the bill and it was not accepted as necessary.

Things like broadband access is fine, parking fees, snacks, research materials (books), maps needed. As this is a one-off if you need something to do the speaking engagement that you would not have purchased otherwise then you should (I would have thought) be able to claim it even if there was something left over afterwards. Keep receipts. If its under $70/day and sound reasonable they should pay. Worth checking whether the days which they pay for include travel days and how many. The European Commission rules are long and complex on this. Though on the good side they recently paid for accommodation for me as a set cost (4* hotel) without requiring you to stay in a 4* hotel

Someone else may be able to advise whether this government incidentals category includes tips. My own employer instituted a rule that as its a charity it does not pay for tips unless they are part of the bill anyway as an automatic service charge. Quite charitable ...

[Spartan_Warrior]

As a federal employee, I remember getting excited after hearing something similar about $70 per diems and travel reimbursement. Then I was told there are two components to a travel per diem--the food portion and the lodging portion. The food portion was something like $30 a day. Any amount of it that you don't spend you get to keep--so essentially that's your "fun money" for whatever you want. The lodging portion, on the other hand, could be used only on hotel stays, and I was also obligated to choose the lowest cost hotel option; however, any portion of the lodging per diem that was left over would NOT be given to me. So IMO, that part of the "per diem" is not really a per diem at all.

The actual travel is covered at the rate of the cheapest venue possible. I think this is considered airfare for any distance over a certain number of miles (e.g. 75 or 100). So, they will pay for the lowest cost plane ticket. Travel in a personal vehicle "when deemed necessary" (e.g. when plane fare is not the cheapest option) is reimbursed at a rate of something like $.50/mi.

These days I utterly refuse to board an airline for non-emergencies, certainly not for some pointless government function I could just as well perform over the phone. Since flying was the "cheapest venue" for my trip, they would've allowed me to travel by personal vehicle, but would only reimburse me the value of the plane ticket. This combined with the dicking out of the lodging portion of the per diem (why am I obligated to take this $20 motel when the per diem is $45... and I don't even get the left over?) caused me to end up refusing the trip altogether as not worth it. (I would have barely broken even or may have even had to pay out of pocket. Yeah. Right.)

I would strongly advise you to clarify with whoever will be cutting the check before doing anything. Remember, whatever you think is logical and right is probably not how the government does it.

[jacob]

It depends on which arm of the government. Usually the secretary of the organizer will know everything (they're the ones ultimately filing the papers) and if you're an invited speaker they should be arranging most of it (lodging) on their end.

In general you'll pay out of pocket and then get reimbursed later. Save all receipts. You never know what you might need.

I've experienced 2-3 different arrangements.

1) Organizer pays lodging directly. You pay for food and get reimbursed a fixed amount per day.
2) You pay lodging and get reimbursed for the exact cost. Food is the same as above.
3) You have to show receipts for every single food item to get reimbursed for what you spend.

Airline tickets follow the same pattern.

I'd just get the cheapest solutions overall. If you only get your cost reimbursed, well, you missed out on the 5 star hotel and the lobster. If you get a fixed amount reimbursed, you just made bank.

I think the key is to be "reasonable". Fly tourist class. Stay at mid/low-end motels... think Best Western. You can go to restaurants but stay under $30 a day. That's what most people do. High profile people who spend it one step up usually end up in the newspapers

[bike_the_world]

This is an area fraught with potential problems. In my experience traveling by air under similar circumstances approximately twice per month during last three years, the 'system' is set up to ensure you will rarely exceed your actual expenses (probably a good thing, but frustrating because of the 'other shoe' about to drop) and most often you will end up subsidizing the travel because of some disallowed expense, or overage on room costs, or meal limits. As an example of the latter, say you are frugal on breakfast and lunch, then maybe splurge a little on supper when joining a group of colleagues. Some cheap employers break a $50/day meal limit into bits like: $10, 15 and $25. So even if you don't exceed your early day meals you end up over on supper and cannot get it all back. Higher amounts can get broken up similarly (70 = 15+20+35).

That said, the only area I have run into where you can potentially 'profit' (recognize there are tax implications of bringing in more than you expend while traveling for others especially international agencies like UN affiliates; on the other hand, if your employer reimburses you as legitimate expenses there exists that buffer between you and tax collector) is the 'per diem' where in lieu of submitting expense receipts they pay you a lump sum per day for meals and/or incidentals and sometimes lodging. In the world of frequent travelers this benefit grows by several factors as you move up the food chain. The folks in first class on most domestic flights haven't paid for those seats but were upgraded, they also get fed once and often twice reducing need to buy expensive airport food. When they get to their favorite hotel chain, they will be treated with access to a business suite with food and drinks, and likely a free breakfast. You see where this aids in fulfilling the old adage of the 'rich get richer'. Assuming per diem claims, that is money in the bank.

That said, the investment in time and misery required to achieve and then maintain those levels of FF status are daunting and most likely not worth it UNLESS this is something you have to do for a living. For the occasional traveler, banking the per diem by being frugal is likely the only option (if meals). If you are well connected, and the agency (e.g., WHO) also pays out the per diem for hotels and local transport then by all means couch surf, stay with friends, bum rides, walk, and take public transport and put the rest away as profit (but be sure to claim it as income in excess of legitimate expenses - the UN agency wire transfers are easily identifiable).

[Joggernot]

I currently travel for gov't. Mileage is 55¢/mile for personal vehicle. When driving you have to show that it saves the gov't money for you to drive (not hard to do). I don't like to fly now, either. The hotel is reimbursed at actual cost with receipt, but you are limited on how much you get reimbursed (think Motel 6 vs. Four Seasons). Meals and incidentals vary with the city/region with the minimum now at $38/day with no receipt required. Have to account for meals provided by others (you didn't buy). Laundry, parking, tolls, etc. are reimbursed at cost with receipt. Laundry only if on an extended stay.

[riparian]

Interesting. They are covering my airfare upfront and they made reservations for me at a hotel they will reimburse for. Ground travel and etc is fully reimbursed. Then there's "meals and incidental expenses" which can be reimbursed up to $70/day.

[jacob]

You said "up to" so that suggests that they'll be collecting receipts and reimburse whatever you can present a receipt for rather than simply giving you $70*number of days.

[Tyler9000]

Regarding incidentals, the rules vary by company. Most frown upon using company money to pay for movies, alcohol, etc. although some are more forgiving than others. When I would spend a few weeks in China for the company's benefit, most places wouldn't give me any grief for spending a reasonable amount of money on non-essentials just to stay sane. I would personally consider medicine to always be covered, as well as small stuff like a magazine at the airport. Something like a sightseeing tour I would pay for myself.

The other major variable is whether the allowance is a true up-front per-diem, or really just a cap on how much they will reimburse you. Most companies these days seem to operate using the latter -- you get back exactly what you spend up to a limit. Frankly, I find this encourages people to splurge on expensive meals (use it or lose it). I once worked at one large company with the former -- I was paid an additional $135/day no questions asked, but was required to cover all of my own food with that amount. In that situation I got some PB&J from a local grocery store and banked an extra thousand or so dollars on the trip. But to be fair, the fact that I was tired of Taiwanese food also played a role in my choice.

[riparian]

Right, Jacob. Hence my question about how to maximize reimbursables without overdoing it.

[saving-10-years]

@Riparian - the 'rules' appear to differ depending on what expenses are for:

a) Short trips as part of your employment. In my experience they can deduct charges if you start your journey from home (instead of from work), and have quirks like the not paying for tips. But as they are paying for your living expenses you should still be ahead assuming you are recompensed for time and its somewhere you want to visit.

b) Long stays aay from home for work. There may be a standard per deim for this as they simply don't want the stress of checking all those expense details.

c) Expenses paid to someone who is not an employee because they have been invited to do something. Consult, speak, etc. This is your case.

Because there is no expectation that the person claiming in c) will know the intricate rules you can ask. That is the best advice as there may be special rules about receipts as well. For example if travelling for European Commission projects and some others you need a boarding pass. As though you may have teleported.

Make friends with the person who checks the expense claims and ask about things that people usually claim under incidentals. Also consider - if this applies - whether there are any substantial extra costs that you feel they should pay (e.g. printing costs for a workbook for each delegate) which are not part of the speaking fee or the day-to-day living expenses. (Maybe you could get them to buy copies of your books - depending on what you are speaking on?) Things like phone calls, broadband access/internet cafe, tips (I imagine), snacks/sweets, work. If its a different climate/environment would you be able to claim for clothing? I don't know but it does not hurt to ask if you have something specific in mind.

[Tyler9000]

One hack I have thought about (but have not tried) is to time shift expenses using gift cards. Basically, when dinner rolls around, purchase a gift card from the restaurant equal to the difference between what you've spent that day and the maximum the company will reimburse. As long as the receipt just shows the amount you paid (and not an itemized list of what you purchased) nobody is likely to question it.

Fair warning -- while technically doable this probably violates the spirit of reimbursement (to pay you for expenses and not provide you additional pay) so I'm sure the company would frown upon the idea.

[jacob]

@riparian - The thing that throws me off is that it's up to $70. Now, I grant there's been some inflation but in my time (5+ years ago) the maximum per diem was something like $35 and that's if you went to Washington DC or Santa Barbara or some other crazy-expensive place. That said, suppose it really is $70, most conference attendees would spend it on starbucks in the morning, the cafeteria for lunch, and some medium restaurant in the evening. They wouldn't intentionally try to max it out. (Some would, but hey, that could be really bad publicity!) Now you could spend a similar amount at Walmart, etc. I'd make it look normal though. Not as if you're trying to extract maximum value out of the system. The benefit would be in that you can spend the money better than the average peep. E.g. $30 at Walmart goes a lot further. However, do consider that this money presumably(?!) comes out of someones research grant. This can mean two diametrically opposite things: 1) Whatever you spend on food does not get spent on science. 2) They have to spend the money by the end of the year anyway lest their grant doesn't get renewed at the same $-amount next year. Think funny-money.

[riparian]

Jacob, it's by city and a lot of cities are less. I think my travel days are $41. Apparently I'm going to an expensive city: http://www.gsa.gov/portal/category/100120

It's not a research grant or related to research at all.

[Seneca]

Jacob, it's by city and a lot of cities are less. I think my travel days are $41. Apparently I'm going to an expensive city: http://www.gsa.gov/portal/category/100120

Correct. At my co in the private sector the per diem number is (was) actually based on what the IRS lets them deduct without receipts. But this is totally specific to your org, it might also be they use the IRS/GSA numbers as a maximum, but don't pay you the difference at expense reimbursement.

My co changed our travel program and it's all receipts, no per diems. I eat more steak & microbrews on travel now.

[Chad]

My co changed our travel program and it's all receipts, no per diems. I eat more steak & microbrews on travel now.

At one of my old jobs we essentially had unlimited expense accounts. Me and 3-4 other guys charged about $5,000 one night for dinner, drinks, and strippers. The only thing the CFO told us was, "Next time don't let the secretary see the receipts. Just send it straight to me."

[Seneca]

There is an unspoken rule to keep dinner around $50/head for co employees. If we have a customer out, sky is almost the limit, but my boss also tells me not to run the expense report through the admin.

$5k is way beyond what I've ever done, even in Tokyo where per diem was $170/day...wow!

VERY different than what would "make the news" in government circles.

[Chad]

Yeah, I ate at more high end restaurants during that time period than the rest of my life combined. Hell, we ordered lobster tail as the appetizer one night. If we had done that in a position related to the government you would probably know what I look like right now from CNN (and rightly so).

[Dragline]

My co changed our travel program and it's all receipts, no per diems. I eat more steak & microbrews on travel now.

At one of my old jobs we essentially had unlimited expense accounts. Me and 3-4 other guys charged about $5,000 one night for dinner, drinks, and strippers. The only thing the CFO told us was, "Next time don't let the secretary see the receipts. Just send it straight to me."

I guess you really took "Fear and Loathing in Las Vegas" to heart.

[Chad]

I guess you really took "Fear and Loathing in Las Vegas" to heart.

Ha! Very true, except no psychedelics. Though, I think I want to remedy that at some point in the future.