Travel and Expense Reimbursement

It is Parallel Markets’ practice to reimburse employees for reasonable expenses incurred in connection with travel and other business on behalf of Parallel, subject to the guidelines and procedures set out in this policy. The specific types of expenses that may be reimbursed and procedures for requesting reimbursement are set out below with examples. Employees must obtain advance written approval from their manager prior to incurring any expense and must retain receipts or other appropriate substantiating documentation for all travel and other business expenses incurred in order to be eligible for reimbursement.

This policy is intended to be an “accountable plan” under the Internal Revenue Code and relevant Treasury Regulations.

Reimbursable Expenses
Travel Expenses
Miscellaneous Expenses
Expense Reimbursement Requests
Return of Excess Reimbursements
Expense Reimbursement Payment
Parallel-Issued Credit Cards
Administration of This Policy

Reimbursable Expenses

Expenses that may be reimbursed under this policy are:

Business travel expenses, including transportation, lodging and meals.
Business meals and entertainment.

Parallel will only reimburse expenses that have been pre-approved by the employee’s manager and meet the substantiation requirements set out below. Expenses not addressed in this policy, such as child care costs and personal entertainment, are not reimbursable.

Travel Expenses

Parallel will generally reimburse employees for business travel expenses incurred in accordance with the guidelines set out below. Employees should endeavor to use the lowest-priced transportation option that is reasonably available.

Air Transportation

Employees must travel on the lowest-priced coach airfare available, taking into consideration preferred airports, preferred arrival and departure times, connection times and other restrictions, including cancellation and change fees. Premium fares, such as fares for first-class or business-class travel, are reimbursable only in circumstances that have been approved in advance by the People Ops team.

Baggage Fees: Airline charges for checked baggage are reimbursable in any of the following circumstances:

The employee is transporting materials belonging to Parallel.
The employee is traveling for longer than three days.
The employee’s manager has approved the charge in advance of the flight.

Parallel reserves the right to determine whether to reimburse employees for penalties and other charges for flight cancellations or changes, taking the particular circumstances into account.

Automobile Transportation and Parking

Personal Vehicles: If use of an employee’s personal vehicle is required for business purposes and an alternative, cheaper mode of transportation is unavailable, Parallel will reimburse employees at the mileage rate set by the Internal Revenue Service (IRS). As of January 1, 2022, that rate is 58.5 cents per mile. Tolls and parking fees are also reimbursable. However, Parallel will not reimburse employees for expenses not necessary for business purposes, such as:

Parking tickets.
Vehicle repairs and maintenance.
Fines for moving violations.
Vehicle towing charges.

Employees using a personal vehicle for business purposes should ensure that their automobile insurance covers business travel.

Rental Cars: If use of a rental car is required for business purposes, Parallel will reimburse employees for the reasonable cost of the rental car, gasoline, tolls and parking fees. Employees must reserve an economy or standard-size vehicle. Upgrades to full-size vehicles are permissible only with advance approval by the People Ops team and if required due to the number of passengers.

Ground Transportation

Employees will be reimbursed for ordinary and reasonably priced ground transportation, including buses, shuttles, taxis and car services to and from airports or railroad stations and between the employee’s hotel and other business-related locations. Public transportation is strongly preferred over taxis and car services whenever available.

Rail Transportation

Employees may use rail travel when it is less costly than air travel and are encouraged to use rail travel in lieu of personal vehicles. Employees are expected to choose the lowest, most reasonable fare available, taking into account preferred arrival and departure times, applicable connection times and other restrictions, including cancellation and change fees. Reimbursement of penalties and other charges for cancellations or changes is governed by the rules applicable to air transportation, as set out above.

Hotels and Lodging

Parallel will reimburse employees for the cost of standard accommodations in a reasonably priced hotel for overnight stays during business trips. Employees seeking reimbursement for lodging expenses must submit an itemized hotel receipt or statement which indicates that full payment has been made and contains:

The name and location of the hotel or other lodging.
The date or dates of the employee’s stay.
Separately stated charges for lodging, meals, telephone and other expenses.

A maximum nightly rate of $200 applies in all geographic locations, and employees must obtain prior written approval from the People Ops team before incurring rates that exceed the listed maximum.

Parallel will pay room cancellation fees for guaranteed room reservations only in extenuating circumstances, as determined by Parallel in its sole discretion.

Meals

Parallel will reimburse employees for the reasonable cost of their own meals while on overnight travel or where an employee is away from their normal work location for an entire day up to a maximum of $100 per day. However, Parallel will not reimburse employees for meals that Parallel, in its sole discretion, determines are lavish or extravagant or for the cost of any alcoholic beverages.

Employees must provide receipts or other appropriate substantiating documentation for each meal taken throughout the trip. Employees may include the expense of reasonable gratuities of up to 20% (which, for the avoidance of doubt, will not count toward the maximum spend per day).

This section does not apply to meals purchased for purposes of business entertainment. Reimbursement of business meals and entertainment is covered below.

Business Meals and Entertainment

Parallel will generally reimburse employees for the costs of business meals and entertainment as set out below.

Business Meals with Clients, Customers and Business Affiliates: Parallel will reimburse employees for the ordinary and necessary costs of meals with clients, customers and other business affiliates if the purpose of the meal is business related. However, Parallel will not reimburse employees for meals that Parallel, in its sole discretion, determines are lavish or extravagant.

When submitting expense reimbursement forms for business meals, employees must submit receipts specifying the names of the attendees and the business purpose served by the meal. For business meals in excess of $200 per person, employees must get advance written approval from the People Ops team.

Business Entertainment: Meals and functions are considered business entertainment if they are intended to provide hospitality to non-employees which, although partly social in nature, are necessary and customary in furtherance of Parallel’s business. Expenses for business entertainment should be reasonable in relation to the nature of the meal or function and the resulting business benefit that is anticipated. For meals and functions in excess of $200 per person, employees must get advance written approval from the People Ops team.

Employees seeking reimbursement for business entertainment should submit a description specifying:

The date of the event.
The name and location of the venue.
The name of each attendee.
An itemized list of expenditures.
The business purpose served by the entertainment.
The nature of the business discussions before, during, or after the entertainment.

Employee Banquets and Functions: Parallel will reimburse the actual cost of occasional banquets and other functions for employees if the expense is intended to serve as a token of appreciation that primarily:

Promotes employee relations or morale.
Recognizes individual or group achievements.

Smaller functions, such as worksite parties to recognize births, marriages or other personal events, are generally paid for by the employees involved and will not be reimbursed by Parallel.

Miscellaneous Expenses

Conferences and Professional Development: Parallel will reimburse employees up to $1,000 for the cost of attending professional development or continuing education programs approved in advance by the People Ops team, including travel costs and registration fees.

Conference registration fees and other similar expenses should be paid directly by the employer in advance of the event but may be reimbursed following the event if prior payment by the employer is not possible.

Communications: Parallel will reimburse employees traveling on business for the reasonable costs of business-related internet service fees.

Employees must present receipts and other substantiating documentation itemizing costs and identifying the parties contacted.

Expense Reimbursement Requests

Employees may request reimbursement for business-related expenses incurred in accordance with this policy by obtaining written approval from their manager and submitting all receipts and appropriate substantiating documentation as required by this policy via our vendor Expensify. For instructions on how to access Expensify and submit expenses please reach out to expenses@parallelmarkets.com.

Submissions for expense reimbursement must include original receipts or other appropriate substantiating documentation for each expense showing:

The amount paid.
The date the expense was incurred and paid.
The vendor or provider name and location.
The nature of the expense.
Other information required by this policy.

Expense reimbursement forms relating to the business use of an employee’s personal vehicle must list:

The miles driven.
The origin and destination.
The date.
The business purpose.
An explanation as to why rail, air or other travel was not feasible.

If a receipt or other substantiating documentation is not available, the employee must submit a written explanation of why the documentation cannot be provided. Parallel, in its sole discretion, will evaluate the explanation and determine whether the expense is reimbursable.

Employees must submit expense reimbursement forms to Expensify within 60 days of incurring the expense. Parallel will not reimburse employees for any expenses submitted after this deadline.

The People Ops team will verify that expenses are permissible and that documentation is adequate and accurate. Parallel reserves the right to refuse any expense reimbursement request that is inaccurate, does not include the appropriate substantiating documentation, is submitted late, or otherwise fails to fully comply with Parallel’s policy, as determined by Parallel in its sole discretion.

Return of Excess Reimbursements

If an employee receives an excess reimbursement, the employee must report and return any excess amounts to the People Ops team within 120 days.

Expense Reimbursement Payment

Payment Date: Parallel will reimburse an employee for reimbursable expenses promptly following the date on which the employee submits a completed expense reimbursement form that includes all required approvals and substantiating documentation, but in any event no later than December 31 of the calendar year following the calendar year in which the expense is incurred.

Section 409A of the Internal Revenue Code: Reimbursements under this policy are intended to comply with Internal Revenue Code Section 409A and applicable guidance issued thereunder or an exemption from the application of Section 409A.

Accordingly, all provisions of this policy shall be construed and administered in accordance with Section 409A. The amount of reimbursements provided under this policy in any calendar year shall not affect the amount of reimbursements provided during any other calendar year and the right to reimbursements hereunder cannot be liquidated or exchanged for any other benefit.

Notwithstanding any provision of this policy, Parallel shall not be liable to any employee for any taxes or penalties imposed under Section 409A on any reimbursements hereunder.

Parallel-Issued Credit Cards

Parallel may, in its sole discretion, issue Parallel credit cards to certain employees for business-related purposes. Employees may only use their Parallel credit card to incur expenses that are reimbursable under this policy or otherwise approved by their manager. Employees may not incur personal expenses on Parallel credit cards. Parallel will pay the credit card bill directly, and the employee must submit reimbursement requests for expenses incurred on their Parallel credit card in the same manner as expense reimbursement requests for other expenses as set out in this policy, including by submitting all necessary receipts, substantiating documentation and approvals and complying with applicable deadlines. Parallel will not reimburse employees for expenses that are not reimbursable under this policy, including personal expenses and late fees.

Use of Parallel credit cards is a privilege and may be withdrawn by Parallel at any time in its sole discretion.

Administration of This Policy

The People Ops team is responsible for the administration of this policy. If you have any questions about this policy or Parallel’s travel and business expense reimbursement procedures, please contact the People Ops team.

Any employee who abuses this policy, for example, by submitting fraudulent expense reimbursement requests, will be subject to disciplinary action, up to and including termination of employment.