Miscellaneous Expense Allowance

Many companies give an allowance to cover out-of-pocket expenses not otherwise covered by corporate policy. This allowance is usually paid in lump sum and may or may not be a percentage of salary and may or may not be grossed-up for taxes. Generally, the employee does not need to provide receipts or documentation of how the allowance is used. Also referred to as relocation allowance, incidental allowance, or transfer allowance.