Travel Advance

[Al Iglesias]

What is the name of your state? Florida

Hello everyone and special hello to my old friend Beth (Beth3):

I am controller for an relatively new 1.5 yr. old (11 employees) company in Tampa, owned by our parent company in Germany. One of our top sales rep has requested a travel advance against expenses. We have not done this with the other 5 sales reps. It is going to be for 2,000.00. The EVP here in Tampa has requested me to draw up a short agreement which I have started somewhat by looking at other companies' agreements for this on the net. My question is on the criteria for repayment. Can we legally say any unpaid advances upon termination will go against final salary or should that be only for final expenses?

 

[Beth3]

Hi, Al.

In my experience, travel advances were always required to be reconciled monthly when an employee turned in their expense account. If the cash advance exceeded their actual expenses, they had to pay the difference back immediately. It would be a poor practice to let a cash advance float. And travel advances were only done in unusual circumstances - i.e. a major expense was in the offing that required cash. Employees who travelled regularly either had a company credit card OR had a credit card of their own dedicated to business expenses only and the company would reimburse them for legitimate business expenses monthly when they turned in their expense report monthly.

If you're concerned about the company being on the hook due to cash advances or inappropriate charges on company credit cards when someone terminates, the later may be your best option.

 

[Al Iglesias]

Thanks for your reply. Yes, it does look like this is going to be an travel advance float for the duration of employment. He is our top salesman who resides in New Hampshire and seems to have cash flow issues.

I have the task of creating an agreement that both he and the company sign. Any hints on pre-set agreements I could pull from the internet would be greatly appreciated. If not, no biggie I already started an agreement that I will keep short, simple and to the point.

Thanks again.

Al Iglesias
Controller
Kreussler, Inc.
Tampa, FL
813-884-1499