Reimbursement

[Cf. F. rembursement.]
The act reimbursing. A. Hamilton.

Paying someone back for out-of-pocket expenses. For example, a company reimburses employees for their out-of-pocket business-related expenses when employees file expense reports. Insurance companies reimburse policyholders for out-of-pocket expenses incurred paying medical bills (for health insurance) or for home repairs (homeowner's insurance).

Payment of an employee or another party for incurred expenses or losses. For example, an employer may reimburse an employee for travel and entertainment expenses, which makes such expenses deductions for Adjusted Gross Income (AGI). See also Accountable Plan; Nonaccountable Plan.

noun

Something to make up for loss or damage: amends, compensation, indemnification, indemnity, offset, quittance, recompense, redress, remuneration, reparation, repayment, requital, restitution, satisfaction, setoff. See substitute.

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Reimbursement is the act of compensating someone for an expense. Often, a person is reimbursed for out-of-pocket expenses when the person incurs those expenses through employment or in carrying out duties for another party.

Common examples are firms compensating individuals who buy supplies for their companies, or firms compensating employees on field or out-of-town assignments who pay for their stay and transportation.

Reimbursement can be of many types like day care, mobile expense, transport, medical expense, study expense and a many more.....

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