What is the difference between a reimbursement and a payout?

Audience: Company, Requesters

Reimbursements

Reimbursements are a type of payout. Reimbursement payouts are the result of an approved expense report. In Reimbi, an invited Requester will submit an expense report. When the expense report is approved, a reimbursement for the amount of the expense report is sent to the Requester. 

Reimbursement payouts are almost always considered non-taxable and no tax information is collected by Reimbi. 

Payouts

Reimbi also handles direct payouts. With direct payouts, there is no expense report. the Company enters the payout amount along with the Requester's contact information. The Requester is notified by Reimbi of the pending payout. After the Requester chooses how funds should be received, Reimbi issues the payout amount to the Requester. 

Direct payouts are almost always considered taxable income and Reimbi does collect the necessary tax information and issues 1099s as needed.