EMPLOYEE BUSINESS EXPENSE
AND
TRAVEL POLICY
Updated
July 2008
TABLE OF CONTENTS
Objective................................................................................................................................... 4
Scope ........................................................................................................................................ 4
Employee Responsibility ......................................................................................................... 4
I.
TRAVEL ARRANGEMENTS ............................................................................................. 4
A. Business Trips ............................................................................................................. 4
1)
Making reservations .......................................................................................... 4
2)
Canceling reservations ................................................................................ 5
B.
Reward Programs............................................................................................... 5
C. Conferences/Seminars ............................................................................................... 5
II.
PAYMENTS & REIMBURSEMENTS .................................................................................. 6
A.
Corporate Credit Cards ....................................................................................... 6
B.
Cash Advances ................................................................................................... 6
C.
Deposits/Registration Fees ................................................................................ 7
A.
EXPENSES – Allowable ............................................................................................. 7
Baggage Fees ...................................................................................................... 7
B.
Dry Cleaning/Laundry ......................................................................................... 7
C.
Gratuities/Tipping................................................................................................ 7
D.
1)
Hotels ................................................................................................................... 8
Preferred properties/Direct Bill (Areas in HealthNow locations) .............. 8
2)
Areas outside HealthNow locations ............................................................ 8
3)
Government Rates ....................................................................................... 8
III.
E.
F.
Meals .................................................................................................................... 8
Transportation ..................................................................................................... 8
G.
Entertainment ...................................................................................................... 9
H.
IV.
Telecommunications Charges ........................................................................... 9
EXPENSES – Non-allowable ...................................................................................... 9
V.
NEW YORK STATE SALES TAX EXEMPTION .......................................................... 9
VI.
TRANSPORTATION .................................................................................................... 9
A.
Air ......................................................................................................................... 9
1)
Airfares ........................................................................................................10
2)
Airline tickets...............................................................................................10
a.
Changes to airline tickets ...........................................................................10
b.
Unused airline tickets ...................................................................10
Cars .....................................................................................................................10
B.
1)
Mileage for use of personal cars ................................................................10
2)
Rental ...........................................................................................................11
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C.
Rail ......................................................................................................................11
D.
Taxi/bus/shuttle ..................................................................................................11
E.
Foreign Travel ....................................................................................................11
VII.
ENTERTAINMENT .....................................................................................................11
VIII.
TELECOMMUNICATIONS CHARGES .......................................................................12
A.
Cellular Phones and Pagers ..............................................................................12
B.
Long Distance Calls ...........................................................................................12
C.
Hotel Internet Fees .............................................................................................12
IX.
EXPENSE SHEET REPORTING REQUIREMENTS ...................................................12
A.
B.
Documentation/Receipts ...................................................................................13
1)
Documentation of travel expenses ............................................................13
2)
Documentation of ........................................................................................13
3)
Receipts .......................................................................................................13
X.
Shared Expenses ...............................................................................................14
EXPENSE SHEET APPROVAL ..................................................................................14
XI.
EXPENSE SHEET AUDITING ....................................................................................14
XII.
REIMBURSEMENT ....................................................................................................14
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EMPLOYEE BUSINESS EXPENSE AND TRAVEL POLICY
Objective
HealthNow New York Inc.’s Employee Business Expense and Travel Policy provides
standard procedures and guidelines for all employees who travel or incur legitimate
business expenses, with the intent of minimizing travel-related costs, ensuring
consistent treatment among employees, and satisfying corporate compliance
requirements, including those of the Internal Revenue Service (IRS) and the Federal
Acquisition Regulation (FAR).
Scope
The Employee Business Expense and Travel Policy applies to all employees incurring expenses
on behalf of the company,. These guidelines supersede all corporate and divisional procedures
related to travel and expense reporting, either written or informal.
Employee Responsibility
As stated in the HealthNow Code of Conduct, employees have a responsibility to follow all
company policies and procedures. Failure to adhere to the Employee Business Expense and
Travel Policy may be considered a violation of the HealthNow Code of Conduct and may result
in disciplinary action as described in the Code.
I.
TRAVEL ARRANGEMENTS
A. Business Trips
All trips must be approved by management prior to making reservations.
1)
Making reservations
After plans to travel are firm, employees are to contact their Travel
Planners for reservations. A listing of departmental travel planners is
found on the PeopleSoft Travel Information Website.
The corporate travel service must be used for airline reservations.
Employees obtaining airline tickets on their own, risk the chance of not
being reimbursed. Other than in emergency situations, any exceptions
must have management approval prior to the arrangements being
made. In certain rare cases, an employee may find a lower fare than
what is offered by our corporate travel service. Employees are advised
to contact the travel agency with specifics on the fare offered. If the
flight is available, our agency may be able to secure this flight. Hotel
and car rental reservations may be made directly or through the
corporate travel service. Whenever possible, travel arrangements
should be booked a minimum of 21 days prior to the date of travel.
Please note that all Buffalo-Albany or Albany-Buffalo airline
reservations must be made through TTO, an on-line booking.
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When traveling involves government business, the traveler must be
identified as such in order to secure government preferred rates.
2)
Canceling reservations
If travel plans are canceled or changed, the Travel Planner must be
contacted immediately to make the necessary arrangements. During
non-business hours, employees should make the changes by calling
the Travel Team’s 24-hour emergency service at 1-888-919-1127,
access code L3i0 or 2LA9, and identify themselves as HealthNow
employees.
Reservations that were not made through the Travel Team must be
canceled directly by employees.
If a scheduled flight is canceled, the company will reimburse additional
expenses resulting from the rescheduling or from the securing of an
alternate means of transportation. The company will also reimburse
additional expenses incurred as a result of an emergency situation.
Charges that result from changes in flight times may not be considered
valid business expenses. If changes were made for non-business
purposes, employees may be responsible for all associated costs.
B. Reward Programs
Reservations will be made with the airline or hotel that provides the most
reasonable rate while meeting business requirements. Program benefits
must in no way influence flight and hotel selection.
C. Conferences/Seminars
It is recommended that the number of people from within a department
attending out-of-town meetings or conferences be limited.
The completion of registration forms, requests for travel advances, payment
of registration fees, and completed request for travel forms are the
responsibility of the employee or the Travel Planner, except in Binghamton
where all arrangements are to be handled by the Travel Planner.
The Travel Planner will make hotel, car rental (if approved), and airline
reservations. Frequently, the host organizations make arrangements with
airlines and/or hotels for special reduced fares or rates.
The
conference/seminar attendee must advise the Travel Planner of “800”
numbers and the conference/seminar program number, and are strongly
encouraged to secure these discounted rates.
Registration fees and associated expenses for conferences/seminars must
be reported on an expense sheet through the PeopleSoft Expense Module.
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Documentation must be submitted with expense sheets for out-of-town
conferences, forums, seminars, etc., that includes “what, where, and when”
information, e.g., registration forms, agendas, and/or conference
summaries.
These agendas are required for submission and
reimbursement.
II.
PAYMENTS & REIMBURSEMENTS
A. Corporate Credit Cards (Officer, Employee Ghost)
Employee corporate credit cards require vice president approval and may
be obtained through request to the Travel and Expense Department staff.
All corporate credit cards must be used for business purposes only.
Corporate credit cards are intended to be used for allowable personal
business expenses (see Section III). They are not intended for charging
major corporate expenses. Such payments should be handled through
Accounts Payable.
Employee corporate credit cardholders are responsible for maintaining their
accounts on a current basis, remitting payments by the stated due dates.
Accounts delinquent over 60 days will be suspended from use and/or
canceled.
Delinquency charges on all corporate card accounts are the responsibility of
the cardholder and may adversely affect the cardholder’s personal credit
record.
All cardholders are responsible for reporting discrepancies and/or disputed
charges:
HSBC Bank USA contact information:
General Customer Service 1-800-975-HSBC (4722) Option 1
Lost/Stolen Cards
1-800-975-HSBC (4722) Option 5
All corporate credit card charges must be reported on expense sheets via
the PeopleSoft Expense Module.
B. Cash Advances
 Advances must be approved by management on-line via the
PeopleSoft Expense Module.
 A maximum of $1,200 may be advanced for employees who do
not have corporate credit cards.
 Advances should not be requested more than seven business
days prior to the trip.
 An employee with two outstanding advances will not be permitted
an additional advance until expense sheets are received and the
advances are reconciled by the Finance Travel & Expense staff.
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

There should be no commingling of advances funds, i.e., sharing
of advance funds among employees and/or applying advance
funds to more than one trip.
All expense advances must be reported on expense sheets via
the PeopleSoft Expense Module. If the travel expenses incurred
exceed the amount advanced, reimbursement (either check or
EFT) will automatically be generated via the PeopleSoft Expense
Module upon approval and audit of the expense sheet. If the
advance exceeds the total expenses incurred, the remaining
balance must be returned to the company. A check payable to
HealthNow New York Inc. must be submitted with the expense
sheet promptly upon return to the office.
C. Deposits/Registration Fees
In certain rare cases, Corporate Credit Cards will not be accepted.
Requests for Accounts Payable (AP) generated checks payable to the
vendor for hotel deposits and registration fees should be sent to AP at least
seven business days before they are required.
The Request for Check form is available on Lotus Notes and is routed
electronically for approval and check creation. The path is as follows:






III.
Go Into TAO Bulletin Boards and Conferences
Scroll down to Corporate
Double Click on Corporate
Click on the toolbar Create
Click on Other
Scroll down to Request For Check; click OK
EXPENSES – Allowable
The following expenses are reimbursable. The listing is not all-inclusive.
Expenses must be reported on expense sheets via the PeopleSoft Expense
Module. For a listing of non-allowable expenses, see Section IV.
A. Baggage Fees
Baggage fees will be reimbursed. Certain carriers currently allow for one
bag per traveler at no cost. HealthNow will cover the cost of the first and
second bag only. Please pack prudently and avoid the second baggage
fee, if at all possible.
B. Dry Cleaning/Laundry
Expenses incurred for reasonable dry cleaning and laundry when away
from home for more than five days are allowed when supported by out-oftown receipts.
C. Gratuities/Tipping
Reasonable tipping is an allowable, reimbursable expense, e.g. bellhops,
skycaps, or maids. Restaurant gratuities should not exceed 20 percent.
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D. Hotels
Hotel reservations must be made through Travel Planners.
1) Preferred properties/Direct Bill (Areas in HealthNow locations)
Lodging in Albany, Binghamton, Buffalo, will be selected from preferred
properties with which HealthNow has negotiated rates and direct-bill
arrangements.
The preferred properties that have direct-bill arrangements with
HealthNow will invoice only for the room. All other charges are the
employee’s responsibility at the time of checkout.
Direct-bill
expenditures must be reported on an expense sheet under the payment
method “AP Prepaid.”
2) Areas outside HealthNow locations
At destinations where HealthNow negotiated rates do not exist, lodging
may be selected from a BCBSA preferred property found on the
PeopleSoft Travel Information Website or one offering the most
beneficial pricing, with consideration given to the convenience of the
traveler.
3) Government Rates
Hotel rooms may be reserved at government rates when the business
being conducted is in conjunction with government business, such as,
Medicare B and FEP.
E. Meals
Meal expenses incurred on overnight business trips or for those trips long
enough to require a stop to properly perform those duties will be limited to
the lesser of the actual expense incurred or the daily federal government
per diem, according to the geographic location of the destination. The
federal per diems are found on the PeopleSoft Travel Information Website.
Meals involving only employees will not be reimbursed unless there is an
explicit business purpose.
Department lunches held to recognize
achievements will be charged to reward and recognition.
Meals will be reimbursed as a business expense if a customer is present
with whom a valid business relationship exists. Customers are defined as
agents, brokers, prospective employees, providers, and vendors.
Receipts for meal expenses must be obtained, detailed receipts are
preferred. Gratuities are not to exceed 20 percent.
F. Transportation
Please refer to Section VI for details on allowable transportation expenses.
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G. Entertainment
Please refer to Section VII for details on allowable entertainment expenses.
H. Telecommunications Charges
Please refer to Section VIII for details on allowable telecommunication
charges.
IV.
EXPENSES – Non-allowable
The following expenses are not reimbursable. The listing is not all-inclusive.
 Accident Insurance – Travel accident insurance is provided under a
corporate Blanket Travel Accident Insurance Policy that covers all
employees for business-related travel. Additional insurance is not
necessary and will not be reimbursed.
 Alcoholic beverages – Employees who are conducting government
related business will not be reimbursed for alcoholic beverages.
 Expenses of family members or companions while accompanying
employees on business trips, including cancellation and transfer
charges or additional fees.
 Personal items, such as clothing, umbrellas, health and beauty aids,
etc.
 Personal reading materials
 Hotel and in-flight movies
 Mini bar items
 Luggage and attaché cases
 Birthday cakes and gifts to employees
 Parking tickets
 Formal wear rentals and purchases
V.
NEW YORK STATE SALES TAX EXEMPTION
As a not-for-profit corporation, HealthNow is not required to pay New York State
sales tax on hotel rooms, as well as all other purchases subject to the tax. Tax
Exempt forms, must be presented to the reservations desk clerk when
registering, regardless of the method of payment.
The Tax Exempt form can be found on the PeopleSoft Travel Information
Website. Obtaining this exemption is an employee responsibility.
VI.
TRANSPORTATION
All transportation charges, except those for corporate officers, are to be charged
to the Corporate Ghost Card. To ensure proper accounting controls, all ticket
charges must be reported on expense sheets via the PeopleSoft Expense
Module.
A. Air
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Officers and Directors are encouraged to exercise judgment in the selection
of flights to ensure that several key employees are not on the same flight.
Airlines tickets should be secured through the corporate travel agency.
Employees obtaining airline tickets on their own risk the chance of not being
reimbursed. Other than in emergency situations, any exceptions must have
management approval prior to the arrangements being made.
1) Airfares
All air travel will be at coach.. Lowest fares require 21-, 14-, or 7-day
advance purchases. It is imperative that passengers understand the
various rules and additional fees are charged for changes. Upgrades to
business or first class are considered a personal expense and will not
be reimbursed.
The company has nationally negotiated rates with United Airlines, which
should be utilized whenever possible.
Any low-fare options declined by the traveler or travel arranger will be
reported to the company.
2) Airline tickets
Airline ticket numbers must be indicated on expense sheets and should
be noted when reporting changes or cancellations to tickets.
a. Changes to airline tickets
Charges that result from changes in flight times may not be
considered a valid business expense. If the changes were made
for a non-business purpose, the employee may be responsible for
the cancellation fee and/or the difference in the cost of the air
travel.
b. Unused airline tickets
If a trip is canceled or postponed, an unused ticket that is
nonrefundable must be applied to a future trip. Unused tickets
should be noted by Travel Planners and employees and used as
soon as possible.
B. Cars
1) Mileage for use of personal cars
Expenses for mileage, tolls, and parking incurred while using personal
cars during approved business travel will be reimbursed. Mileage will
be reimbursed at the current IRS rate and includes the cost of
insurance, gas, oil, etc.
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You are allowed the current IRS mileage rate times the number of
allowable business miles. Commuting mileage is non-reimbursable.
Total allowable mileage should be defined as the number of miles
incurred less the number of miles incurred between home and your
normal place of business. Mileage reimbursements must be submitted
on a monthly basis immediately following month end and reported on
an expense sheet via the PeopleSoft Expense Module. A mileage form
is available on the PeopleSoft Travel Information Website.
2) Rental
Rental cars must be approved in advance by the employee’s manager.
Standard allowable class size is intermediate for Hertz, full size for
Enterprise. Please return the vehicle fully fueled. It should be noted
that rental car locations on or near the airport charge an excess fee. If
at all possible, please arrange pickup and drop-off at non-airport
locations. Navigational systems are considered a personal expense,
and if reserved, will be the employee’s responsibility.
The company has nationally negotiated contracts, which cover
insurance liability, with Hertz and Enterprise.
Additional rental
insurance is not needed.
C. Rail
Rail transportation may be used instead of air for travel that can be
completed within a reasonable amount of time. Our corporate travel
agency can book this, or you may call directly.
D. Taxi/bus/shuttle
The most reasonable ground transportation available should be chosen.
E. Foreign Travel
HealthNow will reimburse for reasonable expenses incurred for foreign
travel including, passport fees and photos, visa charges and required
immunizations.
VII.
ENTERTAINMENT
The expenses of providing entertainment to a client, customer, or employee can
qualify as an ordinary business expense. Entertainment activities can include
the cost of meals. Entertainment can be provided at facilities such as
nightclubs, social clubs, sports facilities, and theatres.
To qualify for a deduction, the expenses must be “directly related to” or
“associated with” the active conduct of the trade or business or for the
production or collection of income. Expenses are not allowed for entertainment
that is lavish or extravagant.
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Business must be discussed in a substantial manner before, during, or after the
entertainment activity.
The IRS has established the following documentation guidelines for business
meals and entertainment, which must be followed to conform to the tax laws:
 A receipt for an expense
 Names of individuals, their titles and company name
 The name and location of the establishment where the meal or event
took place
 The exact amount and date of the expense
 The specific business topic discussed
Entertainment expenses are not reimbursable when government-related
business is conducted.
VIII.
TELECOMMUNICATIONS CHARGES
A. Cellular Phones and Pagers
All business cellular phones and pagers must be approved by Director level
or above and ordered through the Corporate Purchasing Department.
Failure to comply may risk denial for reimbursement. Senior management
must approve any exceptions.
B. Long Distance Calls
In an effort to reduce costs when traveling, the purchase of phone cards is
recommended.
The company considers personal calls of reasonable length an allowable
expense. Hotel receipts should reflect long-distance charges, and these
charges should be shown on the expense sheet.
It is strongly recommended that the 800 line be utilized during business
trips to access voicemail and other employees. To speak with an
employee, enter your extension, your voicemail password, *T, the extension
number of the person with whom you wish to speak, and the #sign.
Buffalo & Binghamton 1-800-760-2005
Albany 1-800-453-4990
CSCO Phones 1-888-489-1260
C. Hotel Internet Fees
It is important to check with your hotel for any Internet related fees prior to
use and to use discretion prior to incurring charges.
IX.
EXPENSE SHEET REPORTING REQUIREMENTS
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All travel and business expenses must be reported on an expense sheet via the
PeopleSoft Expense Module. Employees have the responsibility of ensuring
that their expense reports are submitted timely according to the following
timelines:
 Seven days after completion of a business trip or incurrence of a
business expense by an employee
 Seven days after receipt of the corporate credit card statement by
officer corporate credit cardholders
Questions concerning expense report items or travel policies should be referred
to the Travel and Expense staff. Forms referenced in these guidelines can be
found on-line at the PeopleSoft Travel Information Website.
A. Documentation/Receipts
Original receipts and documentation must be submitted with an expense
sheet. Photocopies or employee-written documentation are not acceptable.
Improper documentation could result in denial of reimbursement and future
advances and in additional personal income tax being levied on the
employee by the Internal Revenue Service.
1) Documentation of travel expenses
Include the following
 Costs of transportation, meals, lodging, and incidentals
(telephone, tips, taxicab fares, parking, etc.)
 Date of departure and return
 Airline ticket numbers
 Number of nights spent at the hotel
 Place(s) of travel including the name or location of each
destination
 Business purpose(s) of the trip
 Nature of the business benefit
2) Documentation of allowable (non-government related) entertainment
expenses
Include the following:
 A receipt for an expense
 Names of individuals, their titles and company name
 The name and location of the establishment where the meal or
event took place
 The exact amount and date of the expense
 The specific business topic discussed
3) Receipts
Employees must support their business expenses by obtaining and
submitting original receipts. This documentation is necessary for the
company to establish a business and tax deduction by substantiating that
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the expenses incurred are either “directly related to” or “associated with”
the active conduct of the company’s business.
Original receipts must be attached to expense sheets. Photocopies or
employee written documentation are not acceptable.
Improper
documentation could result in the IRS levying additional personal income
tax and/or the denial of reimbursement or future advances. The receipts
should be taped, in date order, to 8-½ x 11 sheets of blank paper with the
“Sheet ID” noted on the receipt package.
B. Shared Expenses
Each employee should account for his/her expenses. However, if this is not
practical, one employee should pay the expense and show the names of all
others present. If portions of the expense are to be charged to different cost
centers, appropriate changes should be made to the line accounting.
X.
EXPENSE SHEET APPROVAL
All expense sheets must be approved on-line by management via the PeopleSoft
Travel and Expense module. A “Quick Step Guide to Approving Expense Sheets”
is available on-line at the PeopleSoft Travel Information Website.
Original documentation and receipts must be forwarded to the Travel and Expense
staff upon approval of expense sheets.
XI.
EXPENSE SHEET AUDITING
The Finance staff thoroughly reviews all expense items to ensure they conform to
all regulations, thus providing the Officers a service by enhancing their control over
expenses. However, this secondary review does not relieve the approver of
primary responsibility.
It should be recognized that the Company is responsible for the stewardship of
subscribers’ money and government funds. In this capacity, the Company is
subject to regular audits by various authorities, including HealthNow Corporate
Audit, the IRS, and FAR; and the Accounting Department/Travel and Expense
Department is held responsible for the maintenance of appropriate documentation
for all expenses claimed.
XII.
REIMBURSEMENT
Once an expense sheet has been audited, a check or electronic reimbursement will
be generated to the employee the next business day. Please note that electronic
reimbursements are currently available to only those Buffalo, Binghamton and
Albany employees (currently excluding the Foundation for Healthy Living) who use
direct deposit for payroll. It should be further noted that expense reimbursements
are posted to the “net” account on file with the payroll department. Notification of
deposits will occur via email. This change is effective for payments made after
March 3, 2008.
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