GS1 US Travel & Entertaining Policy / POLICY NUMBER
9094-012-02
APPROVED BY:
Yegneswaran Kumar
Chief Financial Officer / EFFECTIVE DATE:
January 2003 / REVIEWED/REVISED:
February 7, 2017
I. Policy
The GS1 US Travel & Entertainment Policy provides guidelines for incurring business travel and entertainment expenses, and outlines the policy for reporting and reimbursement of such expenses. This policy applies to all employees of GS1 US. This document has been established to ensure effective and efficient internal controls pertaining to travel and entertainment expenses. By outlining acceptable expenses and processes, the policy protects the employee and GS1US from exposure to risks including fraud as well as tax and legal issues. All employees must adhere to this policy for expenses to be considered reimbursable; specifically by using a company issued corporate card and booking travel through the company’s travel agent.
Travel is intended to serve the interest of the business. Each manager is responsible for cost-effective travel within their organization and each individual employee is expected to be prudent in incurring such expenses.
The policy aims to provide clarity in as many aspects of travel as possible. However, it is impossible to anticipate all possible situations. Employees must apply these guidelines on a conservative basis, consistent with organizational standards and exercise good business judgment.
II. General Guidelines
1. Travel should be undertaken only when absolutely necessary for the business. Employees should consider use of video conference or other communication methods in lieu of travel.
2. Travel on company business requires prior approval by the employee’s supervisor.
3. All company related travel arrangements must be reserved through the GS1 US travel agent.
4. Preferred vendors, which have negotiated rates with GS1 US, should be used where available.
5. Employees must select the lowest fares whenever possible. (Refer to Air Travel guidelines elsewhere in this policy). If employees find cheaper fares than offered by the company’s travel agent or the online booking tool, please notify the travel agency.
6. Expenses must be submitted utilizing the company online expense tool (Concur) and should be submitted within 2 weeks of completing the trip. (Refer to Expense Report guidelines elsewhere in this policy).
7. Travel undertaken as part of the 1WorldSync shared services agreement and to be expensed to 1WorldSync should first be approved by the appropriate 1WorldSync department head.
III. Air Travel
1. Travel bookings must be made with prior approval of the employee’s supervisor. For international flights, approval of the respective SLT member is required.
2. Tickets should be booked in advance of the flight date by at least 7 days, longer where possible.
3. Non-refundable fares are often cheaper and must be considered.
4. The Lowest Fare Routing (LFR) must be selected whenever possible. The LFR is the lowest rate quote for a direct flight within a reasonable window of departure time required. Where there is no direct connection, the LFR is the rate with no more than 1 interim stop and lay-over time of approximately 1 hour not to exceed 1.5 hours.
5. Where there are group meetings (e.g. GS1 Connect), cheaper group rates or discounts for bulk bookings should be explored.
6. Choice of carrier should be based on the LFR. Membership in frequent flyer clubs or other personal preferences cannot be used as criteria.
7. Class of travel must be Coach Class for all domestic flights within the US and international flights not exceeding 6 hours in duration. For overnight red-eye flights exceeding five hours in duration, the class of travel may be business class. SLT Members have the discretion to approve upgrades to business/first class on domestic red eye flights.
8. Domestic air travel will be coach class appropriate for corporate travel. If business/first class is the only option available, traveler can choose to fly business/first class with prior SLT member approval. Travelers are not expected to book “Basic Economy” or bargain fares, which are often accompanied by many restrictions.
9. The following travel expenses /upgrades are reimbursable:
a. Purchase of an aisle or window seat if assigned a middle seat on flights over 2 hours in length
b. Purchase of wireless internet access if used for work purposes
10. The following travel expenses/upgrades are not reimbursable:
a. Other priority seating or boarding privileges ( ex: upgrades to first or business class)
b. In-flight telephone or wireless Internet access if used for non-business purpose
c. Headsets, movies or other in-flight entertainment
11. Membership dues in frequent flyer clubs or airport lounges are not a reimbursable expense unless approved by the CEO. Employees can retain their frequent flyer miles earned via business travel for upgrades or personal use.
12. Excess baggage fees will not be reimbursed unless for the first bag/carry on (if the airline does not permit any free baggage check in) or for transporting equipment/documents for business purposes. Travel luggage purchases as a result of lost baggage are not reimbursable.
13. Proof of travel booking must be attached to the expense reports. If the flight was booked and claimed in advance of the trip, the employee should include the future date of travel in the comment section of the report.
14. Cancelled or unused flight tickets must be applied to a new business trip. Refunds for cancellation must be reported in expense reports. Where non-refundable tickets are cancelled, the employee must seek to use the credit for another trip within the deadline specified by the airline.
15. Personal travel arrangements (e.g. spouses, different routing) should not be mixed with business travel in general. If personal travel costs are combined with the employee’s business travel expenses, the additional cost due to personal travel must be identified and excluded from reimbursement claims. GS1 US will generally not reimburse for any companion travel unless specifically authorized by the CEO.
IV. Ground Transportation
1. The method of ground transportation depends on location, duration, cost and nature of business trip.
2. The most economical means of ground transportation, such as public transportation, taxis or trains should be used where ever practical.
3. For travel to and from airports, use of a personal car is the norm. Taxis may be used for long trips (where the cost of parking, public transportation and personal car mileage is comparable to taxi fare) or for exceptional reasons (e.g. personal car under maintenance).
4. The use of limousines is the exception and allowed only when two or more employees are traveling together, or if this option is cost comparable to public transportation. The employee must obtain prior approval from the respective SLT member.
5. Where personal cars are used, reimbursement for mileage will be calculated using the IRS mileage allowance current at the time. Parking and tolls will also be reimbursed. The employee must carry minimum automobile liability insurance (per person and per accident) required by law.
a. Employees are expected to refrain from texting while driving and required to comply with all state laws.
b. Fines for traffic or parking violations will not be reimbursed.
c. The company is not responsible for accidents that occur when the employee drives a personal vehicle.
d. Commuting from/to home and regular office are not reimbursable expenses.
6. Rental cars must be booked using the company preferred vendors. If this is not available or a significantly cheaper vendor is available, another vendor may be used.
7. Mid-size or intermediate size cars must be rented. If three or more employees are traveling together, a full size car can be rented. Upgrades can be done at the employee’s cost and are not reimbursable.
8. Employees must decline Collision and Damage Waiver (CDW) and Personal Accident Insurance (PAI) coverage for rental cars, as this is covered by the company’s insurance policy. In the event of an accident, the employee should contact the Finance Department for proper handling.
9. Rental cars should be preferably returned with a full tank of gas to avoid refueling charges.
V. Rail Travel
1. Employees should consider rail travel if this option is less expensive than air travel.
2. Employees should make their own reservations using Amtrak or similar scheduling sites and place these charges on their corporate credit card.
3. Coach class is the preferred option unless business class is the only available option and has been pre-approved by the employee’s manager.
VI. Lodging
1. Company preferred hotels must be used to maximize leverage on rates with these hotels. Where such hotel is unavailable, other hotels with comparable cost shall be used.
2. Reasonable cost of moderately priced, corporate standard hotel/motel accommodation is reimbursable.
3. Membership in a hotel chain must not be a criterion for choice of hotel.
4. A single room is the corporate standard. Suite, luxury or concierge accommodations will not be reimbursed, unless this is a complimentary upgrade.
5. The employee should always verify if lower rates are available upon check-in.
6. If reservation has been guaranteed, the employee is responsible for timely cancellation as needed. Charges incurred due to non-cancellation or unduly delayed cancellation shall be the employee’s responsibility. For long term stays (over 30 days), rental or extended stay accommodations should be sought, as these are more economical.
7. While reasonable expenses are reimbursable, certain expenses are clearly not.
· Pay TV, Videos, Leisure activities including spa
· Laundry services (unless stay exceeds 4 consecutive nights away from home). Laundry services upon returning home are not reimbursable.
· Health club fees
· Mini-bar consumption (unless in lieu of a meal)
· Shoeshine, barbershops
· Purchase of clothing, toiletries, medicines
VII. Meals
1. Actual, reasonable meal expenses incurred for employees while on a business trip are reimbursable. The norm is $50/day in the US.
2. All receipts must include the itemized bill along with the final signed receipt.
3. If the meal receipt is for a group, the list of attendees must be listed. When a group of employees share a meal, the senior-most person must pay and claim the entire bill. If allocation of expenses to different departments is necessary, the expense should be itemized and appropriate cost center selected.
4. Alcohol is permitted within reasonable limits (i.e. glass of wine at dinner when traveling). Alcohol for employee-only meetings should be approved by the respective SLT member in advance.
5. Reasonable and customary gratuity and tips are reimbursable and should be included in the credit card payment.
6. Where a meal is hosted by personal friends on a business trip, a reasonable compensatory gift ($25 or less) can be claimed. Such practice should be exceptional.
7. Group meetings involving three or more employees should be scheduled outside of normal meal hours to avoid incurring working meal costs.
VIII. Entertainment
1. Per the IRS, “Entertainment” includes any activity generally considered to provide entertainment, amusement, or recreation, and for businesses includes meals provided to a customer or client.
2. Reasonable entertainment expenses (defined as when customers are present) which have a clear business purpose shall be pre-approved by the appropriate SLT member before incurred and will be reimbursed, provided proper documentation and receipts are included in the Expense report. Proper documentation includes: name of customer entertained, date, business purpose, and amount. Alcohol is permitted within reasonable limits during meals with customers. Adult entertainment is not a reimbursable expense. Expenses submitted as Entertainment/client should only be used when non-company guests are in attendance and their names listed on the expense report.
IX. Telephone
1. Reasonable telephone expenses incurred while travelling are reimbursable. Cell phones are widely used now and are often the cheapest way to call within the US, when on travel. Hotel phones are usually exorbitantly expensive and should be avoided.
2. Employees who have been issued a GS1 US company cell phone should use these as the means of calling while on business travel.
X. Miscellaneous Expenses
1. Minor gifts to customers or suppliers ($25 or less) can be submitted under this policy.
2. If required for foreign business travel, passport, visa, tourist card or other entry costs as well as immunization expenses are allowable for reimbursement.
XI. Corporate American Express Credit Cards
1. The company provides American Express (Amex) corporate cards for all GS1 US employees who need to travel. These cards must be used for all business travel expenses. Any exceptions must be approved by the Corporate Controller. No personal expenditures are allowed on the corporate card.
2. Membership in a card reward program is exclusively at the cost of the employee and will not be reimbursed. The company is not responsible for such membership fees or rewards if the corporate card is changed in the future to a different provider, though effort will be made to provide adequate notice. Similarly, if an employee has an elite card, any additional card fees will not be reimbursed.
3. Late fees or other charges arising from late payment or non-payment will be the employee’s responsibility and will not be reimbursed.
4. Amex cards should not be used for cash advances.
5. Employees are required to keep their American Express Corporate Card account current at all times. Employees who have outstanding balances 60 days past due on expenses that have been reimbursed may be subject to disciplinary action up to and including termination.
XII. American Express Platinum Program
1. GS1US offers an opportunity for American Express cardholders to apply for Platinum status with benefits.
a. Card fee: The annual cost for a cardholder to upgrade their Corporate AMEX card to Platinum status is payable by the employee. If a Membership Rewards Program already exists on the card and that member wishes to upgrade to Platinum, they must first notify the company’s Program Administrator via email. This change cannot be made by the individual cardholder.
b. The new program year will begin immediately following the Program Administrator calling in the change to AMEX and the full fee will appear on their next card statement. This is not reimbursable by GS1 US.
c. The cardholder will also receive a retro-credit on their account for the remainder of the fee from any previously elected rewards program which was already paid in advance. All accumulated points associated with the originating program will transfer automatically to the new card. As per our policy, the American Express Corporate Card is to be used for business expenses only with the exception of utilizing the International Airline Program benefit.