What records must be stored for reimbursement compliance?

On Ramp, all receipts, memos, approvals, and payment records are automatically captured and stored with full audit trails, helping you maintain compliant documentation.

Required documentation elements

Every reimbursement record must include:

• Amount spent — The total expense amount
• Transaction date — When the expense occurred
• Vendor name and location — Where the money was spent
• Business purpose — Why the expense was necessary
• Receipt or invoice — Documentary evidence of the transaction

Digital receipts and expense reports satisfy compliance requirements as long as they capture these details and remain accessible for audits.

The $75 threshold rule

IRS substantiation rules for travel, entertainment, gifts, and auto expenses under accountable plans require documentary evidence for:

• All lodging expenses, regardless of amount
• Any single expense of $75 or more

For expenses under $75 (excluding lodging), IRS substantiation requirements may be more flexible. However, maintaining receipts for all expenses creates a stronger audit position and ensures consistency with your company's internal policies.

Additional compliance records

Beyond receipts, you must retain:

• Approval documentation — Digital records showing who approved each reimbursement, when approval was granted, and any reviewer comments
• Payment history — Records of when payments were made, amounts paid, and payment methods
• Substantiation timeline — Documentation showing employees substantiated expenses within a reasonable period (commonly 60 days under IRS accountable plan safe-harbor guidelines)
• Excess reimbursement returns — Records of any excess amounts returned within a reasonable period (commonly 120 days under IRS accountable plan safe-harbor guidelines)
• Expense categorization — Proper coding that maps to organizational accounts and cost centers

Retention periods

Follow these general tax record retention guidelines:

• General reimbursement records — 3 years from filing or due date
• Employment tax and payroll records — 4 years after the tax is due or paid

Store all documentation for the entire retention period in a centralized, secure location accessible to finance and HR personnel.

How it works on Ramp

Ramp captures and stores required compliance documentation:

• Receipt collection — Employees upload receipts via mobile app, email forwarding, or SMS. Ramp prompts for missing receipts and sends reminders until documentation is complete.
• Memo requirements — Admins can require business purpose memos on all reimbursements. Transactions remain flagged until employees provide explanations.
• Approval trails — Every reimbursement approval is timestamped with reviewer identity and comments, creating a complete audit record.
• Payment records — Ramp maintains detailed payment history showing when reimbursements were processed, amounts paid, and payment methods.
• Centralized storage — All receipts, memos, and approval records are stored in one secure location with full search and filtering capabilities.
• ERP sync — Properly coded reimbursements sync to your accounting system with all supporting documentation attached.
• Audit exports — Finance teams can export reimbursement records with supporting documentation for audits or regulatory reviews.

Best practices

• Require receipts for all reimbursements, not just those $75 or more, to maintain consistent compliance standards
• Set clear deadlines for employees to submit substantiation documentation
• Review reimbursement records quarterly to identify missing documentation before audits
• Maintain digital backups of all reimbursement records for the full retention period
• Document your reimbursement policy clearly so employees understand what constitutes valid business expenses