Pitney Bowes Travel and Expense Policy (External)

SCOPE AND OBJECTIVES

Scope

This Travel and Expense Policy (“Policy”) applies to all domestic U.S. employees (and contractors as designated by independent contractor agreements) of Pitney Bowes (PB) and all its divisions and subsidiaries (the “Company”), and replaces all previous domestic travel and expense policies.

A Senior Management Team (SMT) member may grant exceptions, in writing, to this Policy or issue more restrictive guidelines for their respective areas with concurrence of the CEO or his designee.

The Policy is located on Inside PB: from the Home Page, click on “Policies & Procedures” on the top menu bar, select “Finance”, then to the right, select “Travel & Expense Policies” in the “Related Information” box.

Policy Objectives

Travel, entertainment and other expenses represent a significant expense area for PB. Alternate means of communication, such as videoconferencing or teleconferencing, are recommended in lieu of travel whenever cost effective and appropriate. 

All employees and/or contractors who incur approved business expenses are eligible for reimbursement. This Policy establishes procedures for employees and/or contractors incurring business travel and expenses on behalf of the Company.  The objectives of this Policy are to:

• Ensure employees and/or contractors have a clear and consistent understanding of policies and procedures for business travel, entertainment and expense reimbursement.
• Ensure expenses are legitimate and business-related.
• Ensure expenses are cost effective.
• Enforce compliance to maximize the Company’s ability to negotiate discounted rates with preferred suppliers, ultimately reducing costs.
• Ensure compliance with the Internal Revenue Service (IRS) guidelines.

RESPONSIBILITIES AND ENFORCEMENT

Responsibilities

Global Accounting Operations (GAO) is responsible for establishing this Policy with the concurrence of the SMT.  Future addendums require review by Global Accounting Operations.  This Policy may be modified at the Company’s discretion at anytime, for any reason, with or without notice.

Business managers and approvers are responsible for enforcing this Policy.  The approving Manager is responsible for reviewing the expense reports for compliance with the Policy and for verifying the legitimacy and accuracy of charges.  By approving the expense, the Approver is as accountable as the expense report creator to ensure that the expense report adheres to all PB policies.  Senior management will review exceptions to the Policy.

Employees and/or contractors are responsible for complying with the Policy.  The Company assumes no obligation to reimburse employees and/or contractors for expenses incurred and submitted that are not in compliance with this Policy. 

Failure to comply with the established Policy or falsifying an expense report may result in denial of reimbursement and/or appropriate management action, up to and including termination.

Enforcement

Expense reports will be subject to audit.  Employees and/or contractors may be charged back or required to repay any monies incorrectly reimbursed to them in accordance with the Policy and applicable law.

PAYMENT METHOD

All business travel and other expenses must be submitted via itemized invoices to PBI for payment.

Guidant/Temporary Agency employees are asked to submit expenses via their agency whenever possible.

Cash Advances

Cash advances will not be issued.

EXPENSE PROCEDURES

General

• Personal meals should only be submitted for reimbursement when the contractor has an overnight stay or is required to travel on company business outside standard business hours.
• If the expense report form is utilized as backup documentation for contractor invoices, the expense report form must be filled out in its entirety with the business purpose(s) of the expenses clearly documented.
• Expenses must be detailed by category and day (e.g., lodging, meals, phone, etc.) and recorded under the correct general ledger and cost center account number(s).
• Daily hotel room charge and applicable taxes must be noted on the expense report.  All other expenses on the hotel bill must be itemized by expense type (e.g., meals, telephone, fax, dry cleaning, etc.)  Complete, itemized hotel bill must be attached to expense report.
• Meals/Entertainment must be indicated as breakfast (B), lunch (L), dinner (D), and noted as an individual meal or a meal with an Internal (PB employee) or External (Customer, etc.) Partner(s). For internal partners, names must be provided. Reports submitted without names will be immediately returned to contractor for clarification.
• Contractors must keep copies of expense reports and receipts submitted until they are reimbursed by the Company. 

Expense Report Filing Time

• Expense reports must be submitted no later than 30 days after returning from a trip or incurring a business expense.

Receipts/Documentation

The following documentation must be attached to the expense report before reimbursement will occur:

• All ticket receipts.
• Original receipts for all expenses.
• Airfare documentation must contain the “passenger receipt” indicating proof of payment. 
• An itemized hotel bill.
• An itemized car rental bill.

Foreign Exchange

• Overseas expenses are translated by Amex into U.S. dollars. The Amex statement must be submitted with the expense report to verify the exchange rates.  For expenses paid in cash, a receipt for the foreign currency exchange rate or other proof of the cash conversion exchange rate should be included.  However, every attempt should be made to use Amex for all transactions.
• Reasonable bank service transaction fees will be reimbursed for obtaining cash from ATM’s for incidental business expenses while traveling abroad.

Credits

If a contractor receives a refund or credit from a supplier for an item that was previously expensed and reimbursed by the Company, this refund/credit must be returned to the Company.  Examples of this include airline credits for business trips not taken, pre-registration fees for cancelled training courses, etc.

Credits received must be deducted against the next expense report/invoice payment with documentation of the credit noted.  If you do not expect to file an additional expense report within 90 days of receipt of the credit, or the credit exceeds expected business expenses, the contractor should refund the monies by writing a personal check to “Pitney Bowes.”  The check should be forwarded to the Tampa T&E team with a note identifying the cost center, general ledger account to be credited, reason for refund and a copy of the original expense report/contractor invoice.

Non-Employee Travelers

• All authorized non-employee travel that will be reimbursed by PB should be arranged through the PB designated travel agencies.  This includes reservations for job applicants, consultants, meeting attendees, and other third parties doing business with or visiting PB per any contractual agreements.  Job applicants should be reimbursed for their expenses through the Voucher Check Request process.
• Consultants: Travel expenses for authorized consultants should not be directly billed to the Company or reimbursed on an employee’s expense report. It is the consultant’s responsibility to submit expenses for reimbursement per the contractual agreement.

APPROVALS

General Approval

Approval should be obtained from the authorized project manager responsible for hiring the contractor and/or per the independent contractor agreement, for business trips and other expenses to be reimbursed by the Company prior to incurring the expenses.

TRAVEL AND EXPENSE CATEGORIES

General

• All business travel arrangements (airfare, hotel, and ground transportation) must be arranged through the approved automated on-line booking system (PB Online), and/or the Company-approved designated travel agency as applicable.
  • A fee of $40 will be charged if an authorized agent is used instead of the online tool.
  • Charges will not be incurred if it is necessary to contact an authorized travel agent when having problems with a reservation in progress.
  • All fees will show as a separate line on your credit card statement.

Air Travel

• All air travel is by commercial airlines, except for charter services approved by the CEO and arranged through Enterprise Procurement. This applies to all employees and approved non-employee travelers who are traveling at the Company’s expense.
• One checked-bag fee (up to a maximum of $30) per flight segment is reimbursable.

Air Travel Procedures

• Tickets should be booked at least seven days in advance, if possible, to take advantage of booking discounts. 
• Contractors must book the lowest cost fare, within $100 USD per trip, through the approved automated booking system or authorized agency. (if required per contractor agreement to utilize PB”s authorized agencies)
• Non-refundable but exchangeable discount fares should be strongly considered for air travel plans when there is a low probability of cancellation.
• The use of Saturday night stays to reduce air travel cost is permitted provided the additional cost results in net savings to PB.  The Company will reimburse expenses according to IRS guidelines:
  • Weekend stays must be in the same city where the business was conducted.  If the weekend stay is in another city, the costs will not be reimbursed.
  • Weekend expenses must be for the contractor only. (Savings may not be used to pay for the travel expenses of a companion.)
  • Only eligible expenses (hotel, meals, and rental car expenses) will be reimbursed. 
  • Support for the weekend expense must include a statement showing the non-weekend airfare and receipts for the weekend.
• The contractor must pay for any additional airfare incurred for any personal portion of a business trip.

Air Class of Travel

• Contractors must fly coach for travel within the U.S. unless upgraded at no charge to the Company.
• First class travel will not be reimbursed.
• Business class seating is permitted only on international fights greater than six hours or transatlantic flights (of any duration). Under no circumstances may First Class be substituted for Business Class unless there is no additional cost to the Company. If Business Class accommodations are not available, the contractor must travel in Coach.
• Under no circumstances may a contractor downgrade from any higher class of service (i.e., First, Business, or full-fare Coach) in order to obtain personal benefits such as taking family members on business trips, cash reimbursements, etc. 

Lost, Unused, Changed, and Reissued Airline Tickets

• When submitting an expense report for the airfare associated with unused / changed tickets only the amount charged to the contractor’s credit card is eligible to be reimbursed.  The reimbursement request should not be the full itinerary amount. 
• When submitting an expense report as backup for a contractor invoice, please note ticket numbers in the far right column. 

Ground Transportation

Rental Cars

• Rental cars should be mid-size/intermediate unless upgrades or substitutions are given at no additional charge to the company.  If four or more people are traveling together, the least expensive option should be utilized.
• Cars may be rented when away from your normal place of work where the cost of renting is less than the use of taxis or other forms of transport.
• Travelers are expected to refuel rental cars before returning them.  Exceptions granted only if it would cause the traveler to miss a flight and/or incur higher costs.  Please plan departure times appropriately to allow for refueling.
• Optional features including GPS, satellite radio, etc. should be declined when additional expenses would be incurred. If these items are submitted for reimbursement, they will not be paid & the submission will be considered a violation of policy.

Personal Car

• The Chief Financial Officer will establish the PB mileage reimbursement rate annually. Effective January 1, 2015, the reimbursement rate is $0.56 cents per mile.

Rail

• If a business trip requires travel by rail, the contractor may use coach or business class.

Lodging

• Only actual costs for lodging that are reasonable and customary for that area will be reimbursed.  PB sponsors are required to provide the contractor a list of PB properties (found on InsidePB- travel page) for the location/destination of travel.
• Reimbursement for lodging is limited to the single room rate.
• Mini-bar charges will not be reimbursed.
• While staying at hotels, it is expected that contractors will use the most cost effective method of telecommunication (e.g., cell phones, AT&T dialer, telephone calling cards, high-speed internet or hotel phone).
• The Company will not reimburse “no show fees” if the contractor fails to cancel a guaranteed reservation without a legitimate business reason. A cancellation reference number should always be obtained.

Meals and Entertainment

• The suggested amounts below are not an allowance but maximum guidelines for actual costs incurred per meal.
• Meal costs must be reasonable and customary.  Each meal must not exceed the guidelines below:
  • Breakfast: $15
  • Lunch: $20
  • Dinner: $50

Amounts incurred for beverages and appetizers while waiting for a meal are inclusive in the cost of the meal.

For contractors traveling out of the office, the amount suggested for each meal is a recommended guideline (with documented receipts) with the requirement that the $85 daily total not be exceeded if all three meals are consumed during the day.

For those contractors with partial day travel or not traveling away from the office, the individual meal guidelines apply.

Meals with other PB employees are subject to specific IRS informational requirements that must be noted on the expense report.  These include:

• Amount and description of expense
• Time and place
• Specific business purpose
• Attendees and business relationship to person entertained (i.e., name, title, occupation, or other description necessary to establish relationship)

Laundry/Dry Cleaning

Expenses incurred for laundry/dry cleaning during a business trip are reimbursable if the trip lasts longer than five days.

Tips/Gratuities

Gratuities for porters, bellmen, housekeeping services, taxis, etc., must be reasonable and customary.  Please check local customs for appropriate tipping when traveling abroad.  Lavish or unreasonable gratuities will not be reimbursed.

Communication Charges

General

• For all necessary business calls, faxes, dial-in networking, and messages, it is expected that contractors will use the least expensive method of communication.
• Necessary business-related expenses made from personal telephones are reimbursable.

Personal Cellular Phones

• Legitimate business needs for cellular phones must include one of the following:
  • Normal course of business places them in locations not accessible to land lines and there exists a business need for communication.
  • Contractor travels on business for at least one day per week, on a consistent basis.
  • Contractor’s job responsibilities require on-call availability as deemed by the contractor’s PB manager.
• Equipment/hardware cost (the cost of purchasing a cellular phone or related accessories) is not reimbursable.
• Cell phone must be in the name of the contractor.

Receipt Documentation for Cellular Phones

• Receipts for all cellular expenses must be attached regardless of dollar amount as stipulated by the IRS.  
• No cell phone expense will be reimbursed without the following substantiation:
  • Submit the entire original bill, identifying calls relating to Company business

NON-REIMBURSABLE EXPENSES

PB will not reimburse the following expenses.  Please note, this list is not all-inclusive.  If you incur expenses related to any of the following, you are responsible for the full cost.  

Air Travel

• Business class for any flight other than international greater than 6 hours or transatlantic flights of any duration.
• First class travel by anyone other than an SMT member
• Airline club memberships or lounge fees, unless pre-approved by your manager for those individuals whose jobs require over 50 percent air travel
• Flight information guides
• Upgrade certificates (unless used to purchase ticket upgrades for specific flights to fly Business Class as established by this Policy. Booklets of certificate upgrades will not be reimbursed)
• Expenses related to personal activities (e.g., sightseeing, personal side trips)
• Non-business related stopover expenses
• Air phones (except in emergencies)
• In air wi-fi charges
• Passport, photo, visa and other fees for personal travel
• Frequent flyer fees
• Personal/private aircraft expenses (unless approved by CEO)
• Helicopter service
• Excess baggage charges (2+ and/or oversized/overweight) unless required for Company business (e.g., bulky materials, equipment, Company records or property)  (one  checked bag fee up to $30 is allowed)

Car/Car Service

• Additional car insurance (except for international travel including Canada)
• Phones in car service vehicles or limousines
• Locksmith fees for Company, personal or rental cars
• Fines and penalties for law violations
• Repairs to personal car used during business
• Car washes for personal cars
• Rental of motorcycles
• GPS / Satellite Radio Fees
• Refueling charges
• Car rentals greater than mid-size/intermediate (unless four or more travelers)
• Rental cars not booked on Avis/Budget or Enterprise (unless prior approval obtained)

Lodging

• Additional charges for room upgrades, poolside rooms or concierge floor
• Spa services
• Mini-bar charges

Personal/Entertainment

• Salon or spa fees (e.g., saunas, massages, manicures and pedicures)
• Personal entertainment fees (e.g., in-room movies, in-flight movies, personal reading materials, etc.)
• Barber/hairdresser fees
• Smoking supplies (e.g., cigars, pipes, chewing tobacco or cigarettes)
• Rental of tuxedos (unless required for a Company-sponsored event and with prior approval from your manager)
• Extravagant entertainment expenses
• Entertainment or other expenses that are inconsistent with PB’s image (e.g., adult entertainment)

Other Non-Reimbursable Expenses

• Home internet charges
• Home phone line charges if cell/blackberry is reimbursed monthly.(one or the other- cell/bb or home line – not both)
• Gifts to customers, suppliers, foreign subsidiary hosts, etc.; unless approved by an SMT member
• Gifts to employees for birthdays, weddings, family events, promotions or other special occasions (i.e. secretary’s day, etc.)
• Cash advances
• Loss/theft of valuables
• Medical, dental or prescription services if not covered by medical (except international emergency medical expenses)
• Purchase of clothing, luggage or toiletries (except for emergencies)
• Happy hour/bar tabs 
• Office holiday decorations
• Holiday cards to other PB employees
• Professional licensing fees not directly related to or necessary for the employee’s position unless pre-approved by your manager (e.g., state licensing fees for non-practicing attorneys or CPAs, etc.)
• Babysitting/dependent care
• Pet care expenses (e.g., kennel fees)
• Home maintenance expenses while traveling (e.g., house cleaning, house sitting, etc.)
• Subscriptions via expense reports. Must be procured via Wolper services.
• Contributions/donations to charitable/other organizations as they should be paid directly by PB if approved by Community Investments 
• PB individual retirement party fees       
• Personal credit card fees
• Corporate American Express Card delinquent payment fees
• Charges that are not supported by a valid receipt (e.g., the perforated bottom of a restaurant receipt is not acceptable)
• Business items charged on a personal credit card other than the Corporate Amex, except in instances where a supplier does not accept American Express
• Season tickets
• Table sponsorships, club/sports team seats and or club/sports team memberships.  Any exceptions require two-up approvals, in writing, in advance.
• Any golf event requires SMT approval in advance, in writing.
• Country club dues
• Gifts to government officials or political contributions
• Mileage to nearest PB office if you are a home-based employee
• Personal meals unless there is an overnight stay or travel outside business hours.  This includes peer to peer meals when no clients are present.
• PB logo merchandise 

Connecticut Interoffice Mileage Chart

Mileage Chart