KBP Expense Policy
Revision Date: December 2024
This policy establishes guidelines for reimbursable expenses
related to travel, entertainment, awards, recognition, and other expenditures
incurred during the course of business. Employees are
expected to consider KBP’s value, Do the Right Thing, when incurring and
reporting expenses. For scenarios not explicitly covered here, employees should
consult their manager for clarification. It is expected that employees spend the company’s money the way they spend their own.
Expense activity will be reviewed for compliance with this
policy. Exception reports will be provided on a period basis to the applicable
vice president and senior executive leadership. In instances of repeat
violations, disciplinary action may be taken, up to and including termination.
Employees who have been issued a corporate credit card are
required to use the corporate card for expenses instead of a personal credit
card.
KBP will verify that expenses submitted for reimbursement are
permissible under this Policy and that supporting documentation is adequate and
accurate. KBP reserves the right to deny any expense reimbursement request that
does not include the appropriate substantiating documentation, was incurred
without prior approval, is submitted late, or otherwise fails to fully comply
with this Policy, as determined by KBP in its sole discretion and in accordance
with applicable law. Further, for any expenses charged to a company credit card
that fail to fully comply with this Policy, KBP
reserves the right to seek reimbursement from the employee as permitted by
applicable law. Abuse and/or other violations of this Policy may result in
revocation of the employee’s company credit card and in disciplinary action, up
to and including termination from employment.
When KBP deems it is necessary to implement an essential
spend-only expense policy, the tenets outlined in Section Four will supersede
the normal expense policy. If there is a need to have an exception to the
prohibited spend during an essential spend-only
period, employees should receive approval from an RVP or above before being
incurred.
1.
Travel and Entertainment
1.1. Airlines
1.1.1.
Booking Flights
1.1.1.1.
When
business needs are known, tickets must be purchased at least 14 days in
advance.
1.1.1.2.
Based
on a reasonable range of preferred travel times, purchase the lowest fare
ticket.
1.1.1.3.
Purchase
a non-refundable ticket when it is unlikely that travel plans will change.
1.1.1.4.
Airfare
should average $450 per round trip or $250 per one-way flight, but the total
should not exceed $750 for round trip or $550 for one-way. Airfare exceeding
that amount must be approved in advance by a vice president or above.
1.1.1.5.
Coach/economy
should be selected for all flights.
1.1.1.6.
Lost
luggage claims should be filed with the airline and not submitted on an expense report.
1.1.1.7.
Carry-on
luggage is recommended for trips of three days or fewer.
1.1.1.8.
Airline
receipts must be attached to expense reports.
1.1.1.9.
Employees
may retain rewards points and utilize them for personal purposes. However,
participation in the rewards programs may not result in incremental cost to KBP.
It is the sole responsibility of the employee to adhere to any associated IRS
reporting requirements for tax purposes.
1.1.2.
Airport Parking
1.1.2.1.
Employees
who drive personal vehicles to the airport should choose the lowest-cost onsite
parking option that provides for personal safety.
1.1.3.
Other Air Travel Topics
1.1.3.1.
Charges
for internet used for business purposes will be
reimbursed.
1.1.3.2.
Luggage
charges beyond the first piece will not be reimbursed unless the employee is
traveling on company business for four consecutive days or more or the extra
bags contain company materials.
1.1.3.3.
For
employees who travel extensively for business purposes, TSA pre-check
enrollment fees may be reimbursable. Qualification should be discussed with the
employee’s vice president.
1.1.3.4.
Family
member travel will not be reimbursed unless pre-approved for a business
purpose.
1.1.4.
Non-Reimbursable Air Travel Expenses
1.1.4.1.
Overweight
baggage charges (unless transporting company materials).
1.1.4.2.
Air
travel insurance.
1.1.4.3.
Alcoholic
beverages purchased in flight.
1.1.4.4.
Additional
charges incurred for flight upgrades, seat upgrades, etc.
1.1.4.5.
Airline
club memberships.
1.1.4.6.
Valet
parking (unless self-parking in a safe location is not an option).
1.1.4.7.
Flight
costs for family members unless the individual has a purpose for engaging in
company travel and has been pre-approved.
1.1.4.8.
Airline
cancellation fees where the employee did not take reasonable action to avoid
the charge.
1.1.4.9.
Non-business-related
change fees.
1.1.4.10.
Other
personal charges related to air travel.
1.2. Hotels and Lodging
1.2.1.
Booking a Room
1.2.1.1.
Hotel
room rates should not exceed $225 per night, excluding taxes and fees (unless
attending an event or meeting where KBP will be reimbursed for the expense by a
third party). Rates exceeding
that amount must be approved in advance by a vice president or above.
1.2.1.2.
When reserving rooms, employees should use
the discount code “YUM” to receive a discounted rate.
1.2.1.3.
Employees
are responsible for ensuring reservations are cancelled if they will not be used.
1.2.1.4.
When
attending an organized business conference, convention, or event, employees are
permitted to stay at the host hotel at the negotiated rate for the event.
1.2.1.5.
Receipts
are required for reimbursement.
1.2.1.6.
Hotel
internet fees will be reimbursed if incurred due to business need.
1.2.1.7.
Employees
may retain rewards points and utilize them for personal purposes. However,
participation in rewards programs cannot result in incremental cost to KBP. It
is the sole responsibility of the employee to adhere to any associated IRS
reporting requirements for tax purposes.
1.2.1.8.
Employees
may choose to stay with a family member or friend who lives in the area but may
not incur expenses more than what the cost of a hotel
room would have been.
1.2.2.
Non-Reimbursable Hotel Expenses
1.2.2.1.
Lodging
at private rental properties (e.g., Airbnb).
1.2.2.2.
Health
club and spa fees (unless mandatory part of the daily rate).
1.2.2.3.
In-room
entertainment, including movies and video games.
1.2.2.4.
Valet
parking without a business reason.
1.2.2.5.
Family
member lodging unless pre-approved for a business purpose.
1.2.2.6.
Extra
personal days spent in the hotel outside of approved business days.
1.3. Ground Transportation
1.3.1.
Rental Cars
1.3.1.1.
Cars
should be rented by employees traveling for business only when other means of
transportation are unavailable, more costly, or impractical.
1.3.1.2.
Employees
must obtain the most competitive rate available (including preferred discount
codes).
1.3.1.3.
Employees
should attempt to reserve a rental car through Avis and use the discount code G082800. Only if Avis does not have a feasible option
should an employee use another vendor.
1.3.1.4.
The
daily rate for rental cars should not exceed $85. Rates exceeding that amount
must be approved in advance by a vice president or above.
1.3.1.5.
Mid-size
or smaller cars must be rented unless transporting
multiple people or equipment, or an upgrade is provided by the rental car
company at no cost. An explanation must
be provided when a car larger than economy is rented.
1.3.1.6.
If
a car is rented for both business and personal reasons, the personal share must
be excluded from a reimbursement or payment request.
1.3.1.7.
Additional
insurance coverage offered by the rental car company should be declined.
1.3.1.8.
Refuel
before returning rentals.
1.3.1.9.
Car
rental, gas, and toll receipts must be attached to the expense report to be
eligible for reimbursement.
1.3.2.
Ride-Hailing Services
1.3.2.1.
Use
of a ride-hailing service (e.g., taxi, Uber, Lyft) is permitted when more
economical services (e.g., airport and hotel shuttles) aren’t available or when
the cost of airport parking would exceed the cost of this service.
1.3.3.
Non-Reimbursable Transportation Expenses
1.3.3.1.
Traffic
fines.
1.3.3.2.
Rental
car damage or purchase of auxiliary items (e.g., GPS).
1.3.3.3.
Insurance
offered by rental car company.
1.3.3.4.
Rental
cars exceeding $85 per day without pre-approval.
1.4. Travel Meals
1.4.1.
Travel Meal Reimbursement
1.4.1.1.
Travel
meals are defined as reasonable food and beverage expenses incurred by the
traveler when dining alone or with other travelers on an out-of-town business
trip.
1.4.1.2.
Employees
who are traveling within their designated span of coverage do not constitute
the definition of travel for meal reimbursement.
1.4.1.3.
Employees
should attempt to stay within these guidelines by meal:
1.4.1.3.1.
Breakfast
– up to $15
1.4.1.3.2.
Lunch
– up to $25
1.4.1.3.3.
Dinner
– up to $40
1.4.1.4.
Certain
travel meal circumstances could warrant exceptions; however, excessive spend may result in denial of such expenses.
1.4.1.5.
When
attending an organized business conference, convention, or event, employees
should attend the meal hosted by and included in the price of the event.
1.4.1.6.
The
most senior KBP leader is required to pay the bill.
1.4.1.7.
To
adhere to IRS guidelines, the names of all diners should be included with the
receipt.
1.4.2.
Tips
1.4.2.1.
The
tip should be no more than 20% of the total bill.
1.4.2.2.
Ensure
gratuity is not already included in the price of the service.
1.4.3.
Non-Reimbursable Travel Meal Expenses
1.4.3.1.
Alcohol
that is above the standard for the meal (e.g., shots, top-shelf liquor).
1.4.3.2.
Excessive
tips.
1.5. Travel for Non-Exempt Employees
1.5.1.
Travel Time and Pay for Non-Exempt Employees
1.5.1.1.
Time
spent traveling between work locations or travelling outside of a non-exempt
employee’s regular home to primary work location is considered time worked, as
is the incremental time it takes to arrive at work.
1.5.1.2.
For
non-exempt employees without a regular home-to-work location, paid work time
begins after 45 minutes.
1.5.1.3.
Time
spent by non-exempt employees waiting for a flight at an airport and in-flight
is time worked. If an hourly employee must stay overnight somewhere due to a
flight cancellation, time worked stops when the employee arrives at the hotel
and resumes when the employee leaves the hotel the next day.
1.5.1.4.
Meal periods and rest breaks should be
factored into travel time and taken per the non-exempt
employee’s home location laws.
1.6. Entertainment
1.6.1.
Business-Related Entertainment
1.6.1.1.
Entertainment
expenses incurred while traveling (e.g., concert tickets, sporting events, golf
fees) may be reimbursed for entertaining service providers, prospects, or
recruits in the following instances:
1.6.1.1.1.
The
person entertained has a potential or actual business
relationship with KBP.
1.6.1.1.2.
The
expense directly relates to a business discussion or arm’s-length business
relationship that is an actual or potential benefit to KBP.
1.6.1.2.
The
expense must be approved by a vice president or above.
1.6.1.3.
Documentation
must include the business purpose and attendee details.
2.
Daily Operations
2.1. Mileage
2.1.1.
Motus
2.1.1.1.
Employees
receiving reimbursement under the Motus program should refer to the
Motus-Personal Transportation policy for guidelines related to reimbursement.
2.1.1.2.
Employees
receiving reimbursement through Motus are not eligible to be reimbursed for
fuel charges unless tied to a rental car.
2.1.1.3.
Employees
who choose to drive instead of fly for business travel must use Motus to track
mileage and will be reimbursed through the semi-annual true-up reconciliation.
2.1.2.
Employees Who Do Not Use Motus
2.1.2.1.
Employees
will be reimbursed for reasonable business expenses when it is necessary to
travel using their personal vehicle to accomplish required
business activities.
2.1.2.2.
The
total cost of the trip must not exceed the total cost which would have been
incurred had public transportation been used, unless there is an advantage,
such as transporting equipment or employees, or an appreciable savings in
employees’ work time.
2.1.2.3.
When
traveling using a personal vehicle, an employee may submit a mileage
reimbursement request for miles that are over and above what they would
normally travel to and from the office (i.e., to/from home to airport 30 miles;
to/from home to office 20 miles; 30 miles – 20 miles = 10 miles that are
reimbursable at the standard IRS mileage rate). The mileage rate is
automatically calculated.
2.1.2.4.
Travel
within an employee’s home base area (~200-mile radius from home or office)
should be accomplished using a personal vehicle. A rental car may be permitted
in emergency situations for business use in an employee’s home base area.
Advance approval by the employee’s vice president should be obtained in writing.
The use of ride-hailing services is not reimbursable.
2.1.3.
Non-Reimbursable Mileage Expenses
2.1.3.1.
Car
washes.
2.1.3.2.
Auto
repairs.
2.1.3.3.
Fuel
charges for Motus users (unless tied to a rental car).
2.1.3.4.
Ride-hailing
service to transport employees from store to store.
2.2. Business Meals During Regular Work Hours
2.2.1.
Meals During Regular Work Hours
2.2.1.1.
In
general, meetings should not be scheduled before work hours, over lunch or
after office hours.
2.2.1.2.
In
circumstances where meetings are unable to be accomplished during regular
business hours, judgement should be used when ordering meals. These meals
should occur infrequently and be reasonable and appropriate.
2.2.1.3.
The
most senior employee attending the meal should pay, submit the expense on an
expense report, and include the names of all employees in attendance.
2.3. Competitor and KBP Mystery Shops
2.3.1.
Leaders cannot use their corporate credit card for KBP store mystery
shops. Leader discretion should be used when
determining the frequency of competitor mystery shops.
2.3.2.
Leaders who are traveling in their assigned area as part of their daily
duties are not eligible to receive reimbursement under the Travel Meal guidelines.
2.4. IT Subscriptions and Equipment
2.4.1.
Subscriptions
2.4.1.1.
Employees
who need access to an IT-related subscription (e.g., Adobe, Zoom, DocuSign) for
business purposes must submit the request to KBP’s IT Department through the
Workday Help Center. Subscriptions purchased outside of this process will not
be reimbursed.
2.4.2.
Equipment
2.4.2.1.
Employees
who need laptops or iPads must submit a request to KBP’s IT Department through
the Workday Help Center. Equipment purchased outside of this process will not
be reimbursed.
2.5. Non-Reimbursable IT Equipment and
Subscription Expenses
2.5.1.
Mobile devices.
2.5.2.
Cloud storage.
2.5.3.
Laptops or iPads that are not purchased through KBP’s IT Department.
2.5.4.
Subscriptions that are not purchased through KBP’s IT Department.
2.6. Third Party Vendor Spend
2.6.1.
Third party vendors (e.g., repair and maintenance vendors, HR system
vendors, utility vendors) cannot be paid on a corporate or personal credit
card.
2.6.2.
If an exception is warranted, an employee must submit a request to KBP’s Accounts
Payable Department through KBP.AP@kbpbrands.com to request the vendor to be paid via
the KBP corporate credit card.
2.7. Shipping Costs
2.7.1.
When business needs are known, materials should be consolidated to limit
frequency and expedited shipping expenses.
2.7.2.
When shipping business related materials, employees must use KBP’s
corporate UPS account. Employees should
contact Carol Gebhardt if they need access to KBP’s account.
2.8. External Recruiting Agencies
2.8.1.
Leaders must obtain pre-approval from HR before engaging any external
recruiting agency.
2.8.2.
Only agencies on KBP’s pre-approved vendor list may be used.
2.8.3.
All agreements or contracts with external recruiting agencies must be
reviewed and approved by HR to ensure compliance with company policies and
negotiated terms.
2.8.4.
All communication with external agencies should be coordinated through HR
to ensure consistency, compliance, and proper documentation.
2.8.5.
HR will verify that all external recruiting activities comply with
relevant employment laws and company policies.
2.9. Flowers and Charitable Contributions
2.9.1.
Executive Assistants may order flowers or make charitable contributions
on behalf of KBP in the following situations:
2.9.1.1.
Employee
hospitalization.
2.9.1.2.
Birth
or adoption of a child by the employee or their spouse/domestic partner.
2.9.1.3.
Death
of the employee, their spouse/domestic partner, or close family members (e.g.,
child, parent, sibling, grandparent, in-laws, or others residing with the
employee).
2.9.2.
The cost for ordering flowers or making a charitable contribution must
not exceed $100 per employee.
2.9.3.
Flower orders or charitable contributions made by anyone other than an
Executive Assistant will not be reimbursable.
2.10. Non-Corporate Credit Card Holder Field
Employee Guidelines
2.10.1.
Reimbursable Expenses
2.10.1.1.
Tolls.
2.10.1.2.
Office
supplies (e.g., paper, ink cartridges, red board sleeves/clipboards).
2.10.1.3.
Miscellaneous
R&M expenses (e.g., ceiling tiles, light bulbs, caulk, paint, minor
repairs). Note: when reasonable, vendors should be utilized for R&M
expenses and should be discussed with the leader prior to being incurred.
2.10.1.4.
For
Foods leaders, Day 2 Serve supplies up to $25 per day (e.g., snacks).
2.10.1.5.
All
other expenses must be approved by the leader before the purchase is made.
2.10.2.
Monthly Spend Limit
2.10.2.1.
Non-corporate
credit card holders cannot spend more than $150 per month unless their leader
has pre-approved exceeding that limit.
2.10.3.
ServSafe supplies
2.10.3.1.
Foods
and Bells: Regional Training Leaders are responsible for ordering ServSafe
supplies.
2.10.3.2.
Inspired:
Area Coaches are responsible for ordering ServSafe supplies.
2.10.3.3.
Drive-In:
Proctors are responsible for ordering ServSafe supplies.
2.11. Expense Reports
2.11.1.
Timeline
2.11.1.1.
It
is the employee’s responsibility to follow KBP’s expense policy and submit
expense reports in a timely fashion.
2.11.1.2.
Expense
transactions should be submitted in Workday within 30 days
of the expense date.
2.11.1.3.
Expense
transactions that are submitted over 60 days will
require an additional level of approval and may lead to deactivation of an
employee’s corporate credit card and/or disciplinary action.
2.11.1.4.
Managers
should review and approve all reports within seven days of submission.
2.11.1.5.
Expense
transactions that are missing proper documentation, incorrectly completed
and\or are a violation of policy may receive an inquiry, or the full report may
be disapproved and returned to be corrected. All resubmissions and inquiries
are still subject to the original timelines shown above.
2.11.2.
Submissions and Approvals
2.11.2.1.
Itemized
receipts are required for company credit card charges over $25 and all personal
credit card reimbursements.
2.11.2.2.
In
submitting an expense report, the employee certifies that the expenses included
in the report are reasonable and necessary business expenses. Managers (either
directly or through an appropriate designee) must
review and approve expense reports submitted by or for their direct reports and
only approve those expenses that are considered reasonable and necessary and
comply with this policy. Those who violate this policy may be subject to
discipline, up to and including termination of employment.
2.11.2.3.
When
it has been determined that an expense is ineligible for reimbursement and the
employee knows they must remit payment to KBP, their
payment must be made to KBP’s Accounting Department within 30 days of agreeing
to repay the expense.
2.12.
Non-Reimbursable General Expenses
2.12.1.
Non-business-related groceries.
2.12.2.
Auto repairs.
2.12.3.
Streaming service memberships (e.g., Amazon, iTunes).
2.12.4.
Warehouse club memberships (e.g., Costco, Sam’s Club).
2.12.5.
Clothing and shoes.
2.12.6.
Store décor.
2.12.7.
Items for in home use.
2.12.8.
Flowers purchased by any employee other than an Executive Assistant.
2.12.9.
Charitable contributions made by any employee other than an Executive
Assistant.
3.
Awards and Recognition
3.1. Annual Budget
3.1.1.
Each regional vice president and senior department leader in home office must
complete an annual budget projecting their spend on awards and recognition. Each
regional or department leader may use the funds in the categories below at
their discretion, but the overall budget must be adhered to by region and
department.
3.1.1.1.
1:1
meetings
3.1.1.2.
Team
building events
3.1.1.3.
Non-travel
business meals
3.1.1.4.
Department
meals
3.1.1.5.
Birthdays
3.1.1.6.
Holiday
gifts
3.1.1.7.
Gift
cards (see below for additional details)
3.1.1.8.
Miscellaneous
recognition
3.2. Receipts
3.2.1.
To be reimbursed, receipts must be provided after each event and include
the name of all participants.
3.3. Gift Cards
3.3.1.
Tango
is the online gift card platform KBP leaders must use to
award gift cards to employees. Gift cards
purchased outside of the Tango platform will not be reimbursed.
3.3.2.
The
leader will provide the recognition note and $10 dollar gift card to the
employee through Tango. The employee will receive the recognition via email and
can then select the gift card of their choice.
3.4. Taxation
3.4.1.
While
employed with
KBP, employees may receive cash, cash equivalents, gifts or prizes through
company sponsored events or awards and
recognition programs. Should the value of these items be greater than or equal
to $25, the value of these items is considered compensation and is subject to
federal, state and employment tax withholding, and reporting on Form W-2.
3.4.2.
When
an employee receives these items from KBP, the employee will be taxed at their
current rate, based on the value of the item, on the next scheduled pay period,
unless otherwise absorbed by the company.
3.5. Non-Reimbursable Awards and
Recognition
3.5.1.
Gift cards purchased outside of the Tango platform.
3.5.2.
Awards and recognition spend that was not pre-approved by a vice
president or above.
____________________________________________________________________________________________
4.
Essential Spend
4.1. When KBP deems it is necessary to
implement an “essential spend only” period, the items below supersede the standard
expense policy and will be suspended.
4.1.1.
Travel for employees who are not required to travel as a condition of
employment.
4.1.2.
Business-related entertainment expenses.
4.1.3.
Providing business meals during regular work hours.
4.1.4.
Purchase of flowers or providing charitable contributions.
4.1.5.
Spend on awards and recognition (note: the use of Tango for distributing gift cards is permitted).
4.1.6.
Completing competitive shops.