Film Accounting Glossary
Reimbursement
What is a reimbursement?
Also called expense reimbursement.
A reimbursement is repayment to a crew member, producer, or affiliate for a cost they paid personally on the production's behalf, processed against receipts and an account code.
It is not compensation and does not carry fringes when properly substantiated, but an unsubstantiated reimbursement becomes taxable income to the recipient. Productions set a written policy on what is reimbursable before the first day, because arguing it case by case is slower and less fair.
Example
A coordinator is reimbursed $340 against receipts for supplies bought personally. Properly substantiated it is not compensation and carries no fringes. Paid without receipts, it becomes taxable income to the coordinator, which is nobody's intention.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
Processed against receipts and an account code under the written travel and expense policy.
Common mistake
Reimbursing without receipts to keep someone happy. It converts a business expense into taxable income for that person, which helps nobody.
Related questions
- Is a reimbursement taxable to the crew member?
- Not when it is properly substantiated against receipts under an accountable plan. Unsubstantiated amounts can be treated as taxable wages.
- What is the difference between a reimbursement and per diem?
- A reimbursement repays a documented cost actually incurred. Per diem is a flat daily allowance paid without receipts, within published rates.