reimbursement policy

E f f e c t i v e M a y 1 , 2 0 1 3

Travel & Entertainment Expenses Policies & Procedures

EFFECTIVE MAY 2013 TRAVEL & ENTERTAINMENT EXPENSES 2

Table of Contents

I. INTRODUCTION ...............................................................................................................4 A. Purpose and Management of Policy ................................................................................................. 4 B. T&E Eligibility ..................................................................................................................................... 4 C. Expense Report Filing ........................................................................................................................ 4 D. Expense Report Review & Approval ................................................................................................. 4 E. Unusual Expenses .............................................................................................................................. 4 F. Policy Exceptions ............................................................................................................................... 5

II. AMERICAN EXPRESS CORPORATE CARD ...........................................................................5 A. Use of the Card ................................................................................................................................. 5 B. Cash Advances ................................................................................................................................... 5 C. Questions About Your AMEX Account .............................................................................................. 6

III. REIMBURSEMENT OF EXPENSES .....................................................................................6 A. Concur Authorization ........................................................................................................................ 6 B. Overview of the Reimbursement Process ......................................................................................... 6 C. Timing of Reimbursements ............................................................................................................... 7

1. Overview ....................................................................................................................................................... 7 2. Corporate Card Payments ............................................................................................................................. 7 3. Direct Deposits .............................................................................................................................................. 7 4. Audit Selection .............................................................................................................................................. 7 5. Audit Adjustments ......................................................................................................................................... 8 6. Audit Findings ................................................................................................................................................ 8

IV. TRAVEL ..........................................................................................................................8 A. Travel Arrangements ......................................................................................................................... 8 B. Travel Services Department .............................................................................................................. 8 C. Air Travel ........................................................................................................................................... 9 D. Class of Travel ................................................................................................................................... 9 E. Frequent Flyer Mileage ..................................................................................................................... 9 F. Unused/Partially Used Tickets; Advance Purchases .......................................................................... 9 G. Saturday Night Stay-Over ............................................................................................................... 10 H. Lodging ............................................................................................................................................ 10

1. Cancellations/Guarantees ........................................................................................................................... 10 I. Car Rental ......................................................................................................................................... 10

1. Overview ..................................................................................................................................................... 10 2. Insurance ..................................................................................................................................................... 11

J. Personal Car Usage .......................................................................................................................... 11 K. Leased / Company Owned Cars....................................................................................................... 12 L. Taxi and Other Local Ground Transportation .................................................................................. 12 M. Meals While Traveling .................................................................................................................... 12 N. Spousal or Partner Travel ............................................................................................................... 12 O. Group and Meeting Air Travel ........................................................................................................ 13 P. Incidental Expenses ......................................................................................................................... 13 Q. Foreign Currency Exchange ............................................................................................................ 13

V. MEALS and ENTERTAINMENT ........................................................................................ 13 A. Overview ......................................................................................................................................... 13 B. Meals and Entertainment with Time Inc. Employees ..................................................................... 13 C. Social, Sports and Theatrical Events ................................................................................................ 14 D. Entertaining at Home ...................................................................................................................... 14 E. Staff Functions ................................................................................................................................. 14 F. Country Clubs .................................................................................................................................. 14


G. Dining Clubs or Athletic Clubs ......................................................................................................... 14 VI. OTHER EXPENSES ......................................................................................................... 15

A. Late Night Expenses ........................................................................................................................ 15 B. Work on Non-Scheduled Days ........................................................................................................ 15 C. Gifts to Non-Time Inc. Associates.................................................................................................... 15 D. Gifts to Time Inc. Employees .......................................................................................................... 16 E. Conventions, Seminars, Training Courses ....................................................................................... 16 F. Trade & Professional Associations................................................................................................... 16 G. Charitable Contributions ................................................................................................................. 17 H. Non-Staff Fees ................................................................................................................................. 17 I. Office and Computer Equipment and Supplies ................................................................................ 17 J. Communication Costs ...................................................................................................................... 17

1. Mobile Data Plan (Wireless Devices-Blackberry, Tablets, Cell Phones, etc.) ............................................... 17 2. Secure VPN Connections .............................................................................................................................. 18 3. Air phones ................................................................................................................................................... 18

K. Keeping Current .............................................................................................................................. 18 1. Magazines ................................................................................................................................................... 18 2. Newspapers ................................................................................................................................................. 18 3. Cable/Internet ............................................................................................................................................. 18 4. Books/CD’s .................................................................................................................................................. 18 5. Events .......................................................................................................................................................... 18 6. Mobile Device Apps ..................................................................................................................................... 18

VII. NON-REIMBURSABLE EXPENSES .................................................................................. 19 VIII. DOCUMENTATION/RECEIPT REQUIREMENTS ............................................................... 20

A. Overview ......................................................................................................................................... 20 B. Receipts & Documentation Needed ................................................................................................ 20

1. Expenses Charged to the AMEX Corporate Card ......................................................................................... 20 2. Cash and Non-Amex expenses ..................................................................................................................... 21 3. International Receipts ................................................................................................................................. 21


I. INTRODUCTION

A. Purpose and Management of Policy It is the Company’s policy to reimburse employees for reasonable travel and entertainment expenses that are directly connected with or pertain to the transaction of Company business. Such expenses need to be properly documented and reported. While employees are expected to neither gain nor lose financially when traveling on Company business, employees should be prudent regarding expenses and must comply with Time Inc.’s Travel and Entertainment policy.

Both employees and their managers are responsible for ensuring compliance with this policy. Failure to comply with the policy will result in denial of reimbursement for claimed expenses and/or other disciplinary action up to and including termination of employment.

B. T&E Eligibility Eligibility for T&E privileges and the American Express (AMEX) Corporate Card must be initiated and approved by the appropriate Business Office. All changes to T&E privileges, cost centers or Amex must be communicated to the T&E Administration Department using a T&E Eligibility Form submitted by the appropriate Business Office. The form is available from the T&E Administration Department. Please confirm your T&E budget with the Department Head or Managing Editor before incurring any T&E expenses.

C. Expense Report Filing Expenses will be reimbursed if they are reasonable, appropriately documented, properly authorized and conform to this policy. Employees are required to file expense reports monthly shortly after receiving their AMEX Corporate Card statement billing.

Expenses older than three months will not be reimbursed without Division Head or Managing Editor approval. Written approval must be attached to the expense report in which these expenses are being claimed.

Expenses older than six months will not be reimbursed.

D. Expense Report Review & Approval Managers are required to thoroughly review and approve expense reports to ensure the validity and appropriateness of expenses, budgetary control, and policy compliance.

T&E Administration will audit expense reports to ensure that the proper original documentation and approvals are attached and that expenses submitted are in compliance with IRS requirements and this policy.

E. Unusual Expenses T&E Administration must be contacted prior to incurring expenses that are not specifically covered in this policy to ensure that proper approval and reporting requirements are met. If the pressures of journalism prevent you from contacting T&E Administration prior to incurring the expense, you must provide a detailed explanation on the expense report. Frequent exceptions may result in non-reimbursement.

Please note that while some unusual expenses may be reimbursable, under IRS regulations, the reimbursement may be construed as taxable income to the employee. In these cases, the Company will be required to add the amount of the reimbursement to the employee’s W-2 taxable income and the employee will be liable for all taxes due.


F. Policy Exceptions Any exception to this T&E policy requires approval from the Group General Manager or Time Inc. CFO. Exceptions are monitored by T&E Administration.

II. AMERICAN EXPRESS CORPORATE CARD

A. Use of the Card T&E eligible employees are required to apply for an AMEX Corporate Card. The card must be used to pay for all reimbursable expenses.

The AMEX Corporate Card is to be used for business expenses only. Personal use of the card will result in disciplinary action up to and including termination of employment.

It is the Company’s policy to deny reimbursement for expenses not charged on the AMEX Corporate Card.

Other payment methods can be used only when the Amex Corporate Card is not accepted by an establishment. Whenever possible and practical, employees should patronize establishments that accept the AMEX card.

If it is necessary to patronize an establishment that does not accept AMEX (e.g. in remote or international locations), it is the employee’s responsibility to notify T&E Administration on the expense report that AMEX was not accepted at the establishment.

Employees are solely and individually responsible to American Express for all charges incurred on the AMEX Corporate Card.

The company’s reimbursement process is designed to allow the employees to coordinate monthly expense filing with the reconciliation of their AMEX statement and current payment of their AMEX account. Amex delinquency charges, duplicate Amex statement fees and account reinstatement fees are not reimbursable under any circumstances.

The Amex card must be returned to the appropriate Business Office to be destroyed upon an employee’s termination from the Company. The employee must remit any unpaid balance due to Amex immediately and authorize the Company to make deductions from any amount due to the employee in order to settle any outstanding balance owed to Amex. Employees are responsible for cancelling any recurring charges defaulting to the AMEX Corporate Card, such as magazine subscriptions, and confirming with Amex that their account has been closed and paid in full.

Misuse of the Corporate Card, including non-payment to American Express, will result in disciplinary action up to and including termination of employment.

B. Cash Advances Eligibility for AMEX cash advance privileges will be determined by the appropriate Business Office and will be based on the nature of the job and the extent of business travel. Cash advance eligibility and usage will be closely monitored by T&E Administration.

Cash advances are to be taken for business expenses only and should only be used for incidental expenses such as taxis, coat checks and tips.

Cash advances are obtained at ATM machines that accept the AMEX Corporate Card. There is an ATM located in the T&L Building in New York. AMEX has 24 hour phone numbers to help you locate an ATM nearby (in the U.S. call 1-800-CASHNOW or 800-227-4669; outside the U.S. call collect 336-393-1111). All cash withdrawals and transaction fees will be charged to the AMEX account and will appear on the monthly statement.


It is the employee’s responsibility to pay AMEX directly for cash advances taken. Employees should submit an expense report accounting for the cash advance within 30 days of receiving the advance. All expenses must be reported in the appropriate expense categories and be properly documented with the required receipts.

Past due cash advances will result in disciplinary action up to and including termination of employment.

Transaction fees are reimbursable and should be included on an expense report in the Miscellaneous T&E category.

C. Questions About Your AMEX Account Questions concerning your AMEX Corporate Card account (lost/stolen cards, billing, change of address, cash machine availability, etc.) should be directed to American Express by calling one of the 800 numbers listed on the card or your monthly billing statement (if calling from outside the U.S. call collect to 623-492-8427). For further assistance, call the T&E Administration Helpline at 212-522-7798 or send an email to t&[email protected].

III. REIMBURSEMENT OF EXPENSES

A. Concur Authorization Employees are to prepare monthly travel & entertainment expense reports using Concur Travel & Expense (CT&E), Concur’s internet based system for preparing and managing travel & entertainment expense reports. The Time Inc. T&E Administration Department is responsible for managing the authorizations for American Express Corporate Cards and access to CT&E. After receipt of an approved T&E Eligibility form, T&E Administration will enroll the employee in CT&E. After T&E Administration submits the enrollment request in CT&E, it takes approximately 2 business days for the employee’s account, with the proper links to their bank and AMEX accounts, to be established. The employee will then be able to access CT&E to submit expense reports to request reimbursement.

PLEASE NOTE: The primary bank account set up in the payroll system for direct deposit of an employee’s paycheck is linked to the T&E reimbursement bank account. If a change is made to an employee’s primary payroll direct deposit account, the T&E reimbursement account will automatically be changed.

B. Overview of the Reimbursement Process The goals of the reimbursement process are to allow direct payment to AMEX on a timely basis and to ensure timely follow-up on approvals, documentation and audits.

When submitting an expense report with AMEX corporate card charges, reimbursement is sent directly to the employees AMEX account. Expenses applied as personal expense on a report and cash advance transactions are NOT paid to Amex by the Company. Employees must pay Amex directly for these charges. Cash and non-Amex expenses are reimbursed as a direct deposit to the employee’s designated bank account. After submitting the expense report online, employees are responsible for attaching electronic images of receipts or faxing receipts to Concur. Concur will not forward your submitted expense reports to your manager for approval until required receipts are received and imaged. Managers are responsible for reviewing attached receipts prior to approving expense reports. Generally, receipt images are available within 10 minutes of Concur receiving the electronic file or fax.

mailto:t&[email protected]


Employees are responsible for checking/viewing images online to confirm Concur received all receipts and that they are legible for review.

T&E Administration is responsible for ensuring the proper paperwork with approvals and documentation is received in a timely manner. Reports will be audited for compliance with this policy and IRS regulations.

T&E Administration will follow-up directly with the employee if there are any issues regarding the receipt of required documentation and/or if there are any audit adjustments or findings. In order to avoid delays in the reimbursement process, employees must respond to and resolve these issues in a timely manner.

In addition, non-compliance with the T&E policy will result in delay of future reimbursements, denial of reimbursement for claimed expenses and/or other disciplinary action up to and including termination of employment.

C. Timing of Reimbursements

1. Overview

Employees are required to file expense reports monthly in conjunction with the AMEX Corporate Card statement billing. In order to keep your AMEX Corporate Card current, ensure you are not “out of pocket” for cash disbursements for an extended period and enable the Company to promptly record expenses, the following procedure should be followed:

• Prepare and submit an expense report as soon as possible after receiving the monthly AMEX statement.

• Fax, or electronically attach, required receipts to expense reports.

• Send a personal check directly to AMEX for any charges not reimbursable on the expense report. This includes Amex cash advances, expenses applied to an expense report using the Personal Expense type or any expense in which the check box next to Personal Expense was checked.

2. Corporate Card Payments

Amex is paid three banking days after the expense report is approved online.

Time Inc.’s AMEX Corporate Card statement closing date is on or around the 25th of the month. Payments are due on or around the 12th of the next month. See each month’s statement for the exact date.

3. Direct Deposits

Funds should be available in the employee’s bank account three banking days after report is approved in the Concur system.

4. Audit Selection

If an expense is selected for audit, your reimbursement will be held until T&E Administration reviews and approves your expense report. Employees must submit expense reports leaving reasonable time for completion of audit review prior to payment due AMEX in case the expense report is randomly selected for audit.

In addition, if there are outstanding questions regarding previous expense report submissions, your future reimbursements will be delayed until the issues have been properly addressed.


5. Audit Adjustments

T&E Administration will request reimbursement of audit adjustments if expenses that do not comply with Company policy are discovered during the audit process.

• When an audit adjustment is processed, you will receive an email notification from T&E Administration requesting a check, made payable to Time Inc., be sent to T&E Administration to resolve the item.

• Employees must send a check within 30 days of receipt of the adjustment request to T&E Administration, Time & Life Building, 5th Floor, N.Y.

• A copy of the audit adjustment email request must be attached to the check in order to avoid delays in resolving the adjustment.

6. Audit Findings

Employees will be notified of audit findings when receipts and/or the documentation provided to support expenses does not adequately meet policy requirements. T&E Administration will notify employees of audit findings by email explaining the findings and instructions on how to resolve the findings. At this point, T&E Administration is gathering additional information to clarify the business purpose.

If additional documentation is needed the employee is responsible for sending the images to Concur, either electronically or by fax, and notifying T&E Administration when the images are available for review.

Audit findings must be resolved by the employee in a timely manner or there will be a delay of future reimbursements.

Please call the T&E Administration Helpline at 212-522-7798 or send an email to t&[email protected] with questions regarding the reimbursement process.

IV. TRAVEL

A. Travel Arrangements All properly authorized travel arrangements made by U.S. based employees, including en-route changes to travel itineraries, must be booked through the Time Inc. Travel Services Department and charged to your AMEX Corporate Card. You will receive electronic tickets and itineraries prior to your departure date.

Employees are required to use Concur Travel & Expense (CT&E), a web-based, self-service travel reservation tool, to book domestic reservations for air, hotel, rail and car rentals. For multiple city trips and international travel, please call Travel Services to make those arrangements. CT&E incorporates all of Time Inc.’s travel policies and corporate discounts, ensuring all reservations are company compliant.

Failure to use Travel Services will result in non-reimbursement of expenses.

B. Travel Services Department Hours: Weekdays 8:30 A.M. – 6:30 P.M. E.S.T.

Location: Time & Life Building 1271 Ave of the Americas 11th Floor New York, NY 10020

Phone: (877) 847-3068 (24 hours/7 days)



Travel support is available 365 days a year for emergency assistance while en-route or for an itinerary change outside of normal business hours. An agent will ask for the Time Inc. ID code Q88G (listed on all itineraries) or your name if you have a travel profile setup. While traveling overseas, refer to the emergency number printed on your itinerary.

Travelers should fill out a Traveler Profile Form to indicate Corporate Card information and travel preferences. The form is available by calling Travel Services.

C. Air Travel The Company’s objective in booking air travel is to arrive at an optimal itinerary for the traveler while minimizing cost.

It is the responsibility of Travel Services and the employee to book the most cost effective itinerary. This could mean alternative departure times, airlines or airports, non-refundable tickets, etc. Employees should make reservations at least 7 to 14 days prior to travel when possible in order to obtain lower fares. Most air travel will occur on airlines with which Time Warner has negotiated contracts (i.e. United, Delta, British Airways and Lufthansa, etc.).

Tickets are issued by electronic ticketing. Itineraries are delivered by email. In-flight internet costs may be reimbursed on a per flight basis if employee is required to conduct business while on the plane. The purchase of monthly in-flight internet is not reimbursable.

D. Class of Travel 1. Domestic

All employees must travel in Economy (coach) class within the U.S. on all flights.

2. International

All employees must travel in Economy (coach) class internationally. If the flight is over 9 hours in duration then Business class travel is allowed. If the flight is less than 9 hours but the employee will be required to conduct business immediately upon arrival, then Business class is permitted on the outbound flight only (with Group General Manager approval). The employee will be required to return in Economy class.

E. Frequent Flyer Mileage Individual preferences for promotional programs (such as frequent flyer programs or hotel club memberships) should be indicated on your traveler profile form. Your preferences will not be considered if your travel arrangements conflict with the “most cost effective” criteria.

The Company will not reimburse travelers for tickets purchased with frequent flyer miles.

F. Unused/Partially Used Tickets; Advance Purchases If an airline ticket is unused or partially used, proceed as follows:

• Please notify Travel Services immediately. Travel Services will process the ticket for a refund or apply it to your next ticket.


• The airlines take approximately 6-8 weeks to process ticket refunds, therefore in order to keep your AMEX account current, call AMEX with the ticket number and request that a “temporary credit” is issued to your AMEX statement until the actual credit appears.

• Airline credits for airfare that has previously been expensed must be accounted for as a credit expense on your expense report. Failure to do so may result in the denial of claimed expenses and/or other disciplinary action up to and including termination of employment.

• Non-refundable tickets must be expensed. An email notification with the trip details must be sent to Travel Services for future use.

If an airline ticket is purchased in advance causing it to appear on your AMEX statement before you have taken the trip, proceed as follows:

• Submit the ticket charge on your expense report with your itinerary.

• Clearly note on your report that the flight has not occurred yet.

G. Saturday Night Stay-Over Generally, the Company does not encourage employees to travel on Saturdays and Sundays. However, airlines may offer lower fares for trips that include Saturday night stay-over. The Company will reimburse up to two nights’ lodging and meals only if a Saturday night stay-over will result in a net savings. That is, the price of a Saturday night stay-over ticket plus one to two nights lodging and meals is less than the price of a standard ticket. (Employees cannot be reimbursed for incidentals if you travel on a weekend.)

On your itinerary, Travel Services will indicate how much your flight would have cost without the discount.

Saturday night stay-overs must be pre-approved by your Department Head.

H. Lodging Employees are required to stay in hotels on the Time Inc. Approved Hotel List. Travel Services will reserve lodging in hotels not on this list only when necessary. All hotel invoices must be itemized by day and charges classified in the proper expense category.

A copy of the Time Inc. Approved Hotel List is available by contacting Travel Services.

1. Cancellations/Guarantees

Room reservations will be guaranteed for late arrival and charged to your AMEX Corporate Card. If your plans change and you need to cancel your room reservation, you should call Travel Services at 877-847-3068. Hotel chains have various policies regarding cancellation notices and Travel Services is best equipped to handle your particular need.

“No-show” charges are not reimbursable unless the employee can demonstrate that the charges resulted from circumstances beyond their control.

I. Car Rental

1. Overview

Rental cars should be used when other means of transportation are impractical or not cost effective. Rental cars must be reserved through Travel Services to obtain Company discounts.


Failure to use Travel Services will result in non-reimbursement of expenses.

Employees will rent medium or full size cars except in the following circumstances:

• Three or more people are traveling together.

• The transportation of equipment requires a larger vehicle.

Travel Services will reserve vehicles with one of the following agencies:

• Hertz (#225967)

• Enterprise/National (# NA 03 TW4)

Time Inc. does not have corporate discounts with other agencies and they must not be used without Travel Services approval.

Rental company options such as navigational equipment, car class upgrades and fuel options are not reimbursable.

Employees are expected to fill the tank prior to returning the vehicle to the rental agency due to the high fuel cost the rental agencies charge per gallon.

2. Insurance

• Domestic Rentals:

o Personal Accident Liability and Collision Damage Coverage must be declined when renting as the Company maintains coverage in its master insurance policies except in Alaska, Hawaii and Washington DC where coverage should be accepted. Personal Accident Liability and Collision Damage Coverage will not be reimbursed unless it is for cars rented in the states listed above.

o If another rental company is used because Hertz, Enterprise and National are unavailable, you should accept the insurance.

• International Rentals:

o Property, Casualty and Collision Damage should be accepted when renting outside the United States.

J. Personal Car Usage The use of your personal car for business travel will be reimbursed at the IRS allowable rate. The most current rate is posted on My Time.

The mileage allowance is intended to cover all auto costs (e.g., gasoline, insurance, depreciation, maintenance and repairs, car washes). These costs will not be reimbursed if expensed individually.

The Company’s master auto insurance policy does not cover you when you drive your own car for business purposes. Your vehicle should be covered by your personal policy.

Parking fees and tolls are reimbursable with the proper receipts. Parking tickets and traffic violations are not reimbursable.

Travel costs between home and office on your normal working days (via commuter transit, car service or personal car) are not reimbursable. Parking in NYC is not reimbursable except for the occasional need when working late. Monthly parking fees are not reimbursable.

Reimbursement of these costs requires clear descriptions on the expense report of “to & from” destinations and the business purpose for the trip.


K. Leased / Company Owned Cars Lease payments are not to be reimbursed through your expense report. Centralized payment is handled by Accounts Payable.

The IRS requires that the personal use of Company leased or owned vehicles be reported as income to the employee.

L. Taxi and Other Local Ground Transportation The cost of taxis to and from places of business, hotels, airports, rail stations, etc., other than normal commutation, is reimbursable. Taxis or car services used for any other purpose will not be reimbursed.

Whenever possible, Yellow cabs should be utilized, especially when traveling within Manhattan.

All taxi expenses must be itemized and a business purpose must be specified.

Employees may purchase daily subway ride metro cards. Subway fares must be itemized on expense reports by date of use, and include to/from details, to account for the total amount purchased. Only purchase fares that will be used prior to your next expense report submission. Prepayment of future subway rides is not reimbursable. Unlimited/monthly metro cards are not reimbursable.

M. Meals While Traveling You will be reimbursed up to the following amounts for personal meals while traveling:

• Breakfast $14

• Lunch $16

• Dinner $30

The meal allowance is intended to provide for the incremental cost of meals while traveling, up to the limit amounts. Amounts above the limits are the employee's expense. Original receipts are required for reimbursement. Snacks and refreshments are not reimbursable unless they are “substitutes” for a meal.

N. Spousal or Partner Travel Travel expenses for a spouse or partner are reimbursable as a business expense only when their presence is both essential and directly related to the effective accomplishment of company business.

In these limited instances, the employee must obtain written approval in advance from the Division Head or Managing Editor. This approval must be attached to the expense report on which the reimbursement is being claimed and the spousal related expenses must be reported and documented properly on the expense report.

IRS regulations are very stringent regarding the deductibility of these expenses. T&E Administration will determine if these expenses will be considered income to the employee and, if so, the amount of the expense will be included in the employee’s W-2 income and will not be “grossed up” for taxes.

Time Inc. will include on the employee’s W-2 the value of Company paid trips for an employee’s children, extended family members or friends when they accompany the employee to an event. Approval is needed from the Division Head or Managing Editor prior to the trip.


O. Group and Meeting Air Travel Group air travel (meetings, special events, offsites and conferences) must be arranged through Travel Services.

Please let Travel Services know you are traveling to a group meeting when booking travel arrangements.

P. Incidental Expenses Reimbursable “incidental” expenses include:

• Tips - 15% at restaurants; $1/bag for portage; reasonable costs for valet services.

• Laundry - reasonable laundry costs for trips in excess of 3 days, where it would be impractical to transport enough clothing for the duration of the trip. Laundry costs incurred after a trip is complete are not reimbursable.

When traveling, please check for tips and service fees that may already be included in the bill.

Q. Foreign Currency Exchange All expenses must be converted from foreign currency to US dollars at the actual exchange rate experienced. Charges incurred in foreign currency on your AMEX card will be charged in US dollars and should be expensed at that amount.

V. MEALS and ENTERTAINMENT

A. Overview Meals and entertainment must be directly related to the conduct of the Company’s business in order to meet IRS tax deductibility requirements. The IRS requires that a substantial and bona fide business discussion take place when entertaining.

Proper IRS substantiation must be provided on your expense report:

• Complete guest list with the guests’ full names, titles and Company names

• The nature of the business discussion

• The expected business benefit

• Original receipts, regardless of the amount, when the Amex Corporate card is not used. (Tear tabs are not acceptable documentation and will not be reimbursed if expensed.)

The highest-ranking employee present at the meal must pay for business meals. Under no circumstances can a lower ranking employee entertain with the approver included and then have the approver sign the expense report listing the charge.

B. Meals and Entertainment with Time Inc. Employees Meals and entertainment expenses are not reimbursable where only Time Inc. employees are present. This applies to meals at restaurants or internal dining facilities when not traveling on business. This includes meals with employees of all Time Inc. divisions (i.e. TCS, IPC, etc). Only group working lunches, as defined below, and late night meals, as defined in Section VI A. "Late Night Expenses", are reimbursable. When traveling on business, the “Meals While Traveling” limits apply. Group working lunches, defined as meals delivered to the office for a large group working through lunch, are reimbursable and require documentation as outlined in “Meals and


Entertainment - Overview”. Moderation should be exercised and in most instances should not exceed $25 per person. (This subsection is not applicable to Synapse employees.)

C. Social, Sports and Theatrical Events Entertaining clients and sources at social, sporting and theatrical events is reimbursable as long as the IRS requirements listed in Section A above are satisfied.

When tickets are purchased in advance (e.g. season tickets to a team sport or arena), detailed logs must be kept. The logs must include the IRS requirements listed in Section A. These logs must be maintained by the division who administers the season tickets.

D. Entertaining at Home Entertaining at your home is reimbursable only when pre-approved by your Division Head or Managing Editor. This approval must be attached to the expense report.

Only costs directly related to entertaining at home will be reimbursed and IRS requirements listed in Section A must be satisfied.

E. Staff Functions Staff functions are defined as principally entertainment related staff gatherings, such as large parties to celebrate work anniversary, job well done, retirement, etc. At the discretion of the Department Head, reasonable costs of staff gatherings are reimbursable. All non-business related gatherings are not reimbursable. It is strongly encouraged that business related gatherings be held in the office. All IRS requirements listed in Section A must be satisfied.

F. Country Clubs Membership dues and fees are reimbursable for authorized employees only as approved by the Time Inc. CFO. Dues and fees related to the employee’s spouse and/or family are not reimbursable. Reimbursement is limited to the cost of an individual membership and family memberships need to be pro-rated. Dues and fees are paid on a monthly basis, through Payroll with appropriate withholding taxes deducted.

Meals and entertainment spent at the country club are subject to the “Meals and Entertainment” section of this policy. “Minimums” are not reimbursable. Incidental fees (locker fees for spouses, tournament fees, etc.) are not reimbursable unless they are directly related to entertainment and are reported as such.

G. Dining Clubs or Athletic Clubs Membership in dining or athletic clubs must be pre-approved by your Division Head or Managing Editor.

Membership dues and fees are reimbursable for the employee only and should be submitted on an expense report. Dues and fees related to the employee’s spouse and/or family are not reimbursable.

Meals and entertainment spent at the dining or athletic club are subject to the “Meals and Entertainment” section of this policy. “Minimums” are not reimbursable.


VI. OTHER EXPENSES

A. Late Night Expenses

• When employees are required to work 10 hours or more, excluding meal breaks, they can be reimbursed up to $14 to purchase dinner. Receipts are required for reimbursement when the AMEX Corporate Card is not used and should be submitted with an expense report or attached to a time card. If employees are provided with dinners or bring dinners from home, they are not entitled to reimbursement. (This section is not applicable to Synapse & TCS employees.)

• Late night meals, defined as meals delivered to the office for a large group working late at night, are reimbursable and require documentation as outlined in “Meals and Entertainment - Overview”. Moderation should be exercised and in most instances should not exceed $25 per person. (This section is not applicable to Synapse & TCS employees.)

• If employees are required to commute after 9 P.M. or arrive at work before 6 A.M., they will be reimbursed for taxi or car service expenses to their usual commutation or to their home. Within Manhattan, only yellow cabs are permitted. Only Time Inc. approved car companies (Dial & Communicar) may be used or employee risks non-reimbursement of expenses. (This section is not applicable to Synapse & TCS employees.)

• The Department Head or Managing Editor may authorize lodging in advance when

commuters work past 10 P.M. and are required to work the next morning. Email approval must be attached to the expense report. Reservations must be made through Travel Services. (This section is not applicable to Synapse & TCS employees.)

B. Work on Non-Scheduled Days

• When required to work on non-scheduled workdays, employees are reimbursed for meals up to $14 per meal. Receipts are required for reimbursement. (This section is not applicable to Synapse & TCS employees.)

• When required to work on non-scheduled workdays, employees are reimbursed for the cost of their regular round trip commute, taxi service or mileage, tolls and parking for the use of their personal car. (This section is not applicable to TCS employees.)

C. Gifts to Non-Time Inc. Associates Gifts must be made in accordance with the Time Inc. Standards of Business Conduct. When giving gifts, they should be of moderate value and reasonable discretion should be exercised. Cash and cash equivalent gifts (i.e. Amex gift card that can be used anywhere) are prohibited. A gift certificate that can only be used at a specific place or in a specific store would not be considered a cash gift.

If a client gift exceeds $500, advance approval is needed from the Compliance Office in the Legal Department. The $500 limit applies not just to one-time gifts, but all gifts to the same source during any 12 month period.

In order to be reimbursed, you must provide a description of the gift, the recipient’s name, title, company and the business reason for giving the gift on your expense report.


D. Gifts to Time Inc. Employees Gifts (including items such as flowers) may be given to Time Inc. employees for appropriate occasions listed below:

• Promotions • Job Well Done • Birth or Adoption of Child • Death in Immediate Family • Graduation • Hospitalization • Resignation/Farewell/Transfer • Wedding • Length of Service

More than one gift per occasion will not be reimbursed and the gift must be given by the Department Head, Division Head or Managing Editor. Gifts must be reasonable in nature and cannot exceed $100 for any occasion other than length of service. For any substantive retirement or “length of service” gift, pre-approval must be obtained from the Division Head or Managing Editor who will be provided with the appropriate guidelines from their General Manager.

“Welcome” gifts to new employees are not reimbursable.

Birthday, holiday (including “Staff Christmas”) gifts and cards are not reimbursable on expense reports or through invoices processed by Accounts Payable.

American Express Gift Cards must not be purchased from any source other than T&E Administration and are not reimbursable on expense reports. These checks are only to be used as gifts to Time Inc. employees for occasions as described above and centrally purchased through T&E Administration. Please contact the T&E Administration Helpline at 212-522-7798 or t&[email protected] for further information.

The IRS has very stringent regulations regarding the deductibility of gifts to employees. Gifts of a material nature are considered taxable income to the recipient. The gifts will be reported as income to the recipients on the W-2 and not “grossed up” for taxes.

E. Conventions, Seminars, Training Courses The cost of conventions, seminars and training courses are reimbursable on your expense report when attendance is required and requested by the Company. The costs of related travel and meals are also reimbursable and are subject to the policies stated herein.

All other courses, classes and seminars are subject to reimbursement under the “Tuition Reimbursement” policy administered by Employee Administration.

Contact either T&E Administration or Employee Administration if you have a question regarding under which policy the course, class or seminar is covered.

F. Trade & Professional Associations Dues for trade associations and professional clubs will be reimbursed if the employee’s membership has a distinct and direct benefit to Time Inc. as determined by the Department Head and General Manager.



G. Charitable Contributions Charitable contributions are not reimbursable on an expense report. All contribution requests must be processed through Accounts Payable and paid on a Company check.

H. Non-Staff Fees Payments to non-staffers for services provided and/or expenses incurred are not reimbursable on an expense report. These expenses must be processed through Accounts Payable and be paid directly to the non-staffer on a Company check. Supplier invoices and independent contractors are paid through A/P.

I. Office and Computer Equipment and Supplies Office supplies are to be purchased using the Administrative Services designated vendor for office equipment and supplies (i.e. Office Depot). If an item is not available for purchase from the designated vendor, Division Head approval is needed to allow reimbursement on expense reports.

All computer equipment and supplies must be purchased through Information Technology Purchasing.

In very rare circumstances, “emergency” purchases can be processed on your expense report. These purchases must be limited to small dollar items.

If an employee has the cause for an “emergency” technology purchase (hardware, software) it must be reported to the divisional technology representative.

If any “emergency” equipment purchase exceeds $1,000, capital approval must be secured. The Divisional Business Office must be contacted as soon as possible to secure this approval.

J. Communication Costs

1. Mobile Data Plan (Wireless Devices-Blackberry, Tablets, Cell Phones, etc.)

The Company will provide company owned wireless devices (i.e. Blackberry) to authorized employees to access mobile applications including email, and to make calls only for business purposes. If only voice service is required, a cell phone will be provided. Approval by a designated wireless device approver is needed. Data plans, including tablet data plans, and calling plans are purchased centrally and are not reimbursable through expense reports. The corporate wireless plan for monthly service does not cover the purchase of applications. Users can buy business related apps and submit on an expense report for only company approved and supported devices. In addition, the Information Technology wireless policy for purchasing equipment, accessories and services must be followed. Mobile accessories and equipment will not be reimbursed on expense reports. The monthly service cost is centrally paid by Time Inc. and allocated to your department. Personal calls should not be made using company equipment. The Company reserves the right to audit calling records for compliance to policy and the calling plan. Under IRS regulations, personal use of Company cell phones is considered taxable income and will be added to an employee's W-2 earnings.


T&E Administration will maintain a list of those employees who have been authorized to have devices for business use.

2. Secure VPN Connections

Information Technology provides network services and computer equipment for individuals authorized to have a secure VPN connection to the Time Inc. network. The costs associated with these services and equipment are centrally paid by Information Technology and allocated to the appropriate departmental budget.

The cost of a residential high-speed internet connection (DSL, cable, etc.) for VPN access is not reimbursable.

3. Air phones

Air phone usage should be limited to “emergency” or “business critical” situations.

K. Keeping Current

1. Magazines

Magazine subscriptions needed for business purposes are reimbursed on an expense report. Payments to publishers for subscriptions will not be processed through Accounts Payable. The SYNAPSE websites (www.magazineoutlet.com and www.freebizmag.com) must be used unless a title is not available from their sites.

Subscriptions to Time Inc. brands are not reimbursable. The company provides free copies/access to employees and clients. Please contact your business office in regards to obtaining copies for your office or clients.

2. Newspapers

Newspaper subscriptions, both print and digital, and single copies purchased from a newsstand are not reimbursable on an expense report or through accounts payable.

3. Cable/Internet

Monthly cable, satellite television, high-speed internet online access or internet service provider fees are not reimbursable.

4. Books/CD’s

Reasonable costs of books, CDs, single copies of magazines and other review/competitive material are reimbursable when deemed appropriate by your Department Head or Managing Editor. The materials remain property of the Company.

5. Events

Tickets to theatrical and sporting events are reimbursable only when attendance is necessary to complete one’s job.

6. Mobile Device Apps

Business related applications downloaded to company approved wireless devices are reimbursable on expense reports.

http://www.magazineoutlet.com/

http://www.freebizmag.com/


VII. NON-REIMBURSABLE EXPENSES

• Air Travel Clubs (e.g. Admirals Club) • Airline headsets for in-flight movies • American Express delinquency fees, finance charges or suspension fees • Annual fees for credit cards • Baby-sitting / Dependent care expenses • Barber, manicurist, shoe shine, hairdresser • Birthday and Holiday gifts and cards to employees • Briefcases and other luggage including the replacement of lost luggage items • Cable or satellite television fees • Calendars, planners, planner refills • Charitable contributions • Computers and computer equipment • Entertaining and meals with other Time Incers • High speed internet access from home (only hotel connection fees are reimbursable) • Home phone lines (business calls made from home are reimbursable) • Hotel facility use - massages, facials, manicures, gyms • Hotel in-room movies • House sitting fees • In-flight monthly internet charges • Internet service provider charges • Kennel fees • Mobile monthly plans, equipment or accessories • Newspaper subscriptions & single copies (NY Times, Wall Street Journal, USA Today,

etc.) • Navigation systems for rental vehicles • Normal commuting expenses on regular workdays • Passport fees • Personal car maintenance and repair • Personal clothing or accessories, including purchase or rental of formal wear • Personal grooming items, drugstore items (toothpaste, aspirin), toiletries • Personal office furnishings (pictures, picture framing) • Personal reading material • Personal stationery • Traffic and parking tickets • Unlimited/monthly Metro, Rail or Bus tickets • Upgrades for rental cars, airline or hotels


VIII. DOCUMENTATION/RECEIPT REQUIREMENTS

A. Overview In order to comply with Company and IRS requirements, the following procedures must be followed. If the proper documentation and receipt requirements are not attached, future reimbursements will be denied or delayed.

• Before submitting your report online, you must attach the electronic image of receipts, or fax directly to Concur, in order for the expense report to be forwarded to your manager for approval.

• All expenses require a written “business purpose” and “benefit derived”. Specifically, an individual not familiar with your job should be able to understand the reason for and benefit from traveling or entertaining.

• The “business purpose” and “benefit derived” must be specific.

o VALID: “Discuss 3rd qtr sales targets”; “Background for Olympics Story”, “Maintain client relationship”, “Solicit new client”, “Magazine close deadline”, “Financial closing”

o INVALID: “Client Meeting”; “Entertaining Source”, “Sales Calls”, “Worked Late”, “Sales appointment”

There are situations where confidentiality may preclude employees from entering information on an expense report. This information must be maintained by the employee and must be made available to the Division Head, Managing Editor or their designate on request.

B. Receipts & Documentation Needed Below outlines the receipt and documentation requirements when using an AMEX Corporate Card and on occasions where the card is not accepted (i.e. cash expenses for cabs, tips, etc.).

International travelers have additional reporting requirements regardless if using the AMEX Corporate Card or paying with cash.

1. Expenses Charged to the AMEX Corporate Card

Expenses charged to the AMEX Corporate Card do not require that the original signed AMEX paper receipts be attached to the expense report because the electronic receipt loaded into the expense report by Concur serves as an original receipt. The monthly AMEX statement is no longer required except for AT&T calling card charges.

Additional documentation is required for certain expenses charged to the AMEX Corporate Card to substantiate the business purpose of the charge. The following original documents or detailed receipts describing the expense must be attached to an expense report:

• Hotel bill with detailed charges

• Itinerary provided by Travel Services

• Car rental detailed receipt

• Cell phone invoice with call details

• Car service/taxi receipt

• Amex monthly statement for AT&T calling card charges only

• Invoice for gifts listing description of items purchased for clients or employees


• Books purchased (listing of titles, cost, etc.)

• Test kitchen supplies & photo props

• Seminars & conferences course description

• Events billing (i.e. catering, season tickets, etc.)

• Receipts for all expenses applied to the “Misc. T&E” expense category except for tips, ATM fees and coat checks.

2. Cash and Non-Amex expenses

Original receipts, regardless of the amount, are required for business expenses when not using the AMEX Corporate Card. In addition to the documentation listed above in section B.1, any original receipt or documentation to support the business purpose of the expense should be included with the expense report.

For cash and non-Amex expenses, photocopies and restaurant tear-tabs are not acceptable.

3. International Receipts

Business expenses incurred outside the U.S. where value added taxes (VAT) have been paid require the original detailed receipts regardless of the amount. The original detailed receipt is needed whether the expense is paid for using the AMEX Corporate Card or cash. The original receipts with VAT enable the Company to file for a refund to recover qualified VAT.

Receipts and supporting documentation should be placed in an envelope then stapled to a copy of the expense report and sent to T&E Administration. Please write VAT RECEIPTS on the top page of the expense report for proper processing.

DO NOT include the Amex statement unless the statement is the original receipt (i.e. AT&T calling card charges).

Please keep a copy of your expense report and receipts.

reimbursement policy

Documents

reimbursement of expenses

unusual expenses

e f f e c t

corporate card payments

audit selection

audit adjustments

audit findings

expense report filing