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Does your business make you pay for your own daily work related expenses?

maestro55

maestro55

macrumors 68030
Original poster
Nov 13, 2005
2,708
0
Goat Farm in Meridian, TX
So I just started a new job in late August doing IT work. I love the work I am just frustrated that I am expected to pay for everyday expenses. I am not talking about travel expenses (which are of course reimbursed with per-Diem). I am talking about the fact that they expect me (the IT guy) to use my personal card to order parts and software and be reimbursed at the end of the month. This isn't a problem for small things, but certainly gets annoying. It can add up and end up putting a crunch on my finances and something doesn't seem right about that. The company needs to have a better way to deal with purchases, not expect people to use their personal money for business expenses. Or am I off base to think this?
 
so they expect you to buy upgrades and the like? wow

seriously just tell them they shouldnt expect you to put that on your credit cards or whatnot and if they want you to purchase those items, then give you a company credit card
 
I'm hoping that the business is a very small business, maybe around 10-20 employees. If it's a bigger business or has multiple locations, that doesn't seem right.

We buy all our IT parts and software with the business credit card. Our business also has has accounts set up with the major retailers we use on a weekly basis so we don't have to carry the card around.
 
The problem I see is that they reimburse him at the end of the month. What they're doing it getting a no interest loan from maestro55. That's just wrong, man. That's just wrong. My boss pretty much asks the same of me, BUT I get reimbursed right away.
As for the tax dodging slant, they'd be stupid to have an employee purchase equipment for the business on his personal card. It'd be a pain in the butt trying to convince the IRS it's a business expense. They'll look at the receipt and say, "WTF, the company name isn't maestr055."
 
As an interim solution, call your bank and ask for the billing close date to be changed to one that will allow you to get reimbursed before the bill is due.
 
Use it to your advantage. Get a good credit card with good points, then go on a nice vacation(s) on your company.
 
I used to use a personal credit card to pay for Google keywords at my last company. We spent $35K a month. I got an Amazon Visa card and earned a $25 Amazon gift certificate for every $2,500 spent on the card. I got a lot of toys out of that deal. I rued the day they told me I would have to get a company credit card and use that.
 
That doesn't seem right. That is why there are business credit cards.

But yeah, as mentioned, you COULD use it to your advantage if you buy enough work-related stuff.

To answer your question, NO...my company has given me a company credit card and all expenses that I incur are reimbursed.
 
Unfortunately, it's not all that uncommon, and as far as I know, completely legal within reasonable limits. Ideally, they should reimburse within about a week of submitting expenses, and in my mind no later than the end of the pay cycle. Beyond that I'll tell them to pack sand. I've turned down a number of offers that had exactly the same requirements for that reason. Now, it's ALL on the Corporate AMEX, or it doesn't happen.
 
Be careful. If the company goes bust and doesn't reimburse you, you're still expected to pay the credit card bill.

It's a bit of a red flag overall. Why can't the company get credit? Is it on the edge?
 
And some of the central credit and purchasing can get a company breaks on prices also, having the employees buy from a multitude of sources makes it hard for the company to qualify for local discounts.
 
my company expects us to do that. Mind you it is for little things like gas cost for personal vechicals if we use them, Not all of us have company cars yet.

Or when we take a client or some one in the office out to lunch we charge it to our personal card then get refund shortly afterward. I have not had to do it yet but my understanding is they just put it in with our pay check so it normally takes maybe 1-2 weeks.

Mind you for most things we either use a corporate account number and they bill that like when I did a 500 fedex shipment. Or just request a check to be made out to where ever we need the money to go.
 
Hmm. I expect our staff to meet small expenses that are then credited back to them with their pay. Nothing over a few pounds, though, and certainly nothing that can be paid for directly by the business on a business credit card.

I don't really understand why they're doing what they're doing. If I was you, and I was comfortable that the company would always cover the costs, I'd definitely go down the reward points or cash-back avenue and make it worth my while. Otherwise I'd profusely apologise and say I'm finding it hard to budget for the extra expenses on my credit cards and please could I have a company card to make the purchases.
 
This is normal in the trucking industry. A driver better not lose a receipt or he/she just paid for a lumper! (Lumpers are a scam)

Pretty much if it isn't available at a company store or the company you are buying from doesn't have an account the driver pays for it first then gets reimbursed. At my company you need a PO number to buy anything over $35 to get reimbursed.

I'm glad I'm not a "company" driver anymore.
 
I travel frequently with my work and often have to put significant sums of money on my personal credit card. Quite often the amounts sum 5 or even 6 thousand dollars.

I've used it to my advantage though. I will make sure as much of the trip's cost goes on my card as possible.

Why?

Because I have a cash-back credit card of course.

Just make sure you get your expense cheque before your balance is due.

It's not s bad of a deal if you do it smart

Cheers
 
As a business owner, an advantage to that scenario is hoping you lose receipts and you carry the interest if there is some.
We've had corp. AMEX since day one - and I get the points so who's complaining? Got a nice 7 day cruise for 4 out of it and ready for another. Employees are happy and so am I since there's built in expense tracking and the money's not out of their pocket.
 
I'm sorry, but the points aren't worth being on the hook for sums of money that aren't my problem. That's bush league crap on the part of your company.
 
dmr727 said:
I'm sorry, but the points aren't worth being on the hook for sums of money that aren't my problem. That's bush league crap on the part of your company.
Click to expand...

I agree. In some cases, it's OK. Like if I had to make a small purchase, say under $100, and that was a once in a blue moon occasion, and I don't regularly make purchases, I'd rather just pay it and get reimbursed than do all of the paperwork and go through the hassle of getting a corporate credit card. But if I was frequently making large purchases, no way in hell would I use my personal credit card.
 
I work for a *large* public institution and I have to do this too. Pisses me off except that I get 1% cashback. I probably put ~$10-20k/year on my own card. I also have a personal card that I use for business to keep the accounting simple.
 
My company does this, but I write software so my expenses have maybe been $200 in the past eight months total. Can't really ask the accountant to go out and buy me a copy of leopard, bigger stuff they handle themselves.
 
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