> ## Documentation Index
> Fetch the complete documentation index at: https://docs.shorpay.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Expense Reimbursements

> Reimburse workers for business expenses they've covered.

When workers spend their own money on business expenses (travel, equipment, software), Shor handles the reimbursement flow end-to-end.

## How Reimbursements Work

<Steps>
  <Step title="Worker Submits an Expense">
    From their dashboard, the worker uploads a receipt, enters the amount, picks a category, and adds a note about what it's for.
  </Step>

  <Step title="You Review and Approve">
    You get a notification. Open the expense, check the receipt, and approve, reject, or ask for more info.
  </Step>

  <Step title="Shor Pays It Out">
    Approved expenses are added to the worker's next pay cycle, or can be paid out immediately as a one-off reimbursement.
  </Step>
</Steps>

## Expense Statuses

| Status        | What it means                                          |
| ------------- | ------------------------------------------------------ |
| **Submitted** | Worker has submitted the expense; awaiting your review |
| **Approved**  | You've approved it; queued for payment                 |
| **Rejected**  | You've declined it; the worker can revise and resubmit |
| **Paid**      | Reimbursement has been sent                            |

## Expense Categories

Every expense gets a category for reporting and accounting:

* **Travel**: flights, hotels, ground transport
* **Equipment**: laptops, monitors, peripherals
* **Meals**: client dinners, team meals
* **Software**: subscriptions, licenses
* **Training**: courses, conferences, certifications
* **Office supplies**: consumables and small equipment
* **Other**: anything that doesn't fit the above

Your accountant can export expenses by category for month-end close.

## Setting Expense Policies

Keep reimbursements consistent with a clear expense policy. Common guardrails:

* Per-diem caps for meals and travel
* Equipment purchase limits (e.g., "up to \$2,000 per person per year")
* Approval thresholds (e.g., "expenses over \$500 need a second approval")
* Required documentation (receipts, pre-approval for travel)

You enforce the policy in the approval step: Shor surfaces the receipt and details so you can check against your policy before approving.

## Payment Timing

<Tabs>
  <Tab title="Roll Into Payroll">
    Approved expenses are added to the next payroll run for that worker. Clean for accounting, but the worker waits until the next pay date.
  </Tab>

  <Tab title="Pay Immediately">
    Approve and pay as a one-off reimbursement. The worker gets their money faster, but it's a separate transaction in your books.
  </Tab>
</Tabs>

## Tax Treatment

Reimbursements are generally not taxable income for the worker, as long as they're backed by valid receipts and are for legitimate business expenses. Shor stores every receipt alongside the payment for your records.

<Note>
  Tax treatment varies by country. If you have questions about a specific reimbursement, check with your tax advisor. Shor's role is to provide clean records, not tax advice.
</Note>

## Next Steps

<CardGroup cols={2}>
  <Card title="One-Off Payments" icon="paper-plane" href="/employer/one-off-payments">
    Other types of ad-hoc payments.
  </Card>

  <Card title="Finance Dashboard" icon="chart-line" href="/employer/finance">
    See every transaction in one place.
  </Card>
</CardGroup>