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Business Expenses / Reimbursement

  • Thread starter Thread starter SWSinRI
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SWSinRI

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What is the name of your state?What is the name of your state? Rhode Island (RI)

I work for a small consulting firm that currently has some cash flow problems, to the point where expenses that are incurred when I travel have not yet been reimbursed even though our client has paid them.

Printed company policy is clear that the company pays prevailing federal mileage rate on the date of the travel for the miles travelled, transportation fares (air, train, ferry etc) and reimburses approved expenses (lodging, food, no entertainment, etc) to the dollar levels specified per day. Although there is nothing written in the policy, the CFO specified in an e-mail that expenses would be paid within 30 days of their submission.

The last expense check that I received was dated 6/18 for expenses thru w/e 4/12.

I am concerned that this will continue, or that the company is in more trouble than we have been informed of. What recourse, if any, do I have to try and collect these expenses. I have asked several times about expense checks, and I have been informed that "We are having a cash flow problem right now, and we will release checks as soon as we are able". But I notice other things getting paid, that are not as important.

If the company should go out of business, am I in a preferred position to collect these expenses? I understand that payroll is covered by state employment law, and I should collect any payroll owed, but what about these expenses? Is there someway I can protect myself? If there is I want to make sure that I have the paperwork ready in case of a problem, or perhaps I may even file it sooner. The dollar amount has reached a point where it is causing credit problems.

Any advise would be helpful.
 


Beth3

Senior Member
Repayment of business expenses is entirely a matter of company policy. Collecting monies due to you if the company is unwilling or unable to pay will require you to go to court and get a judgement against them as this is entirely a civil matter.

Personally, I'd probably tell the employer that given the size of the expenses owed me and the fact that it's causing personal credit problems, I am unable to travel on company business unless they provide a cash advance on expenses prior to each trip. Basically, it's the equivalent of shipping product to a customer C.O.D when there are concerns about payment.
 

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