T&E (Travel and Entertainment)
Employee spending on business travel, meals, and client entertainment, managed through expense reports and corporate policies.
FAQs
What percentage of business meals is tax deductible?
Business meals are 50% deductible for federal income tax purposes, provided they are directly related to business and the taxpayer is present. The TCJA eliminated the deduction for entertainment expenses (sporting events, concerts), so only the meal component of combined dining/entertainment events is deductible. Some exceptions apply for company-wide employee meals.
How do corporate cards differ from personal reimbursement for T&E?
Corporate cards are issued to employees and billed to the company — employees don't use personal funds and don't wait for reimbursement. This improves cash flow for employees and gives employers real-time spending visibility. Personal card reimbursement requires employees to float expenses and submit expense reports — slower, more admin-intensive, and provides less real-time data.
What is the difference between a corporate card and a virtual card?
A physical corporate card is a standard card used for various T&E purchases. A virtual card is a single-use or limited-use card number generated for a specific vendor, amount, or purpose — often used for AP payments to specific vendors. Virtual cards provide granular control (can only be charged by one vendor for a set amount) and detailed transaction data, reducing fraud and simplifying reconciliation.
Related Terms
Per Diem
A fixed daily allowance provided to employees for meals and incidentals while traveling for business, simplifying expense management and IRS compliance.
Internal Controls
The policies, procedures, and practices designed to safeguard assets, ensure financial accuracy, prevent fraud, and promote operational efficiency.