Manage reimbursement categories

Reimbursement is the act of compensating someone for an out-of-pocket expense by giving them an amount of money equal to what was spent. Depending on the organization's policy, reimbursement can be paid as a fixed amount every month or as the amount claimed by the employee.

HRStop lets you, as an admin, manage reimbursement categories as required and customize them according to your company policy.

---

Follow these steps to manage reimbursement categories:

1. Navigate to Control Panel → Payroll → Reimbursement.

2. Click the Categories button in the navigation bar. A new page opens, showing the fields to manage the categories.

3. Select the Component Type (Medical, Conveyance, LTA, Taxable, Non Taxable).

4. Enter the Name of the reimbursement category.

5. Enter the Description for the reimbursement.

6. Enter the Financial Year for which the reimbursement applies.

   1. Pro Rata basis: Lets you reimburse the amount on a pro rata basis, depending on the exempted limit specified for the category.

   2. Is Elapsable: Select the checkbox to let unclaimed reimbursement lapse at the end of the financial year.

   3. Is CTC: Makes the reimbursement amount a CTC component when the employee has submitted all the required documents and the employer has verified them. The employee can view the reimbursement in the CTC by clicking Compensation → My Compensation on the Main Panel.

7. Payment Mode: Select the payment mode: Salary, Payout or None.

   1. Salary mode: Enable this option to make the reimbursement when the salary is processed.

   2. Payout: Enable this option to make the reimbursement without processing the salary.

   3. None: Enable this option to record the reimbursement without making any payment to the employee.

8. Monthly Limit: The monthly reimbursement limit for the category.

9. Yearly Limit: The yearly limit is the maximum reimbursement that can be made for the category. The yearly limit has the following options available:

   1. Enabled: Enable this option to show the monthly limit in the reimbursement section of the employee's portal.

   2. Allow self-declaration: Enable this option to let the employee edit the reimbursement value against the category from the Main Panel.

   3. Show in Investment Declaration: Enable this option to display the reimbursement category in the employee's investment declaration.

The entry appears in the table below on the same page. All changes take effect instantly.