Do Companies Reimburse for Pet Boarding Expenses?

Some employers reimburse work-related expenses, but whether pet boarding costs are covered is unclear. As business travel increases and remote workers occasionally return on-site, pet care can become an unavoidable cost.

Employer Discretion on Pet Boarding Costs

Companies set reimbursement policies based on internal guidelines, industry norms, and budget constraints. Unlike airfare or lodging, pet boarding is not a standard travel expense. Some employers consider it a personal responsibility, while others recognize it as a necessary cost for employees who must travel.

A company’s stance on pet care reimbursement often reflects its approach to employee well-being. Businesses that prioritize work-life balance may offer pet care stipends or include boarding costs in travel reimbursements, especially in industries with frequent travel like consulting and sales. Others focused on strict cost control may exclude pet-related expenses entirely.

Some organizations allow department heads to approve non-standard expenses case by case. This flexibility can benefit employees with supportive managers but also creates inconsistencies. If approvals vary, employees may face disparities in reimbursement, raising concerns about fairness and transparency.

Criteria for Pet Boarding Expense Approval

Companies that reimburse pet boarding typically establish guidelines to ensure consistency. A key factor is whether the travel is mandatory. If an employee must be away for work and has no alternative pet care options, some employers may consider the expense justified.

The length of the trip also matters. Short business trips of a day or two may not qualify, as employers expect employees to make personal arrangements. Longer trips, especially those exceeding a week, are more likely to be reimbursed since extended absences make pet care unavoidable. Last-minute travel assignments may also receive more leniency, as employees have little time to find cost-effective solutions.

Documentation is often required. Employees may need to provide itemized receipts from licensed pet boarding facilities. Some companies also request proof that no other reasonable care options were available, such as a statement confirming that family or friends were unable to assist. These requirements help prevent misuse of reimbursement policies and ensure funds are allocated appropriately.

Tax Implications for Employees

Reimbursement for pet boarding expenses can have tax consequences depending on how the employer classifies the payment. If the company pays the boarding facility directly, the employee typically has no tax liability. However, if the employer reimburses the employee, tax treatment depends on whether the payment qualifies as a non-taxable fringe benefit under IRS guidelines.

Under U.S. tax law, employer reimbursements are tax-free if they fall under an “accountable plan.” This requires the employee to provide receipts, demonstrate a clear business connection, and return any excess reimbursement. Since pet boarding is not explicitly recognized as a deductible business expense by the IRS, companies must document why the expense is necessary to prevent it from being classified as taxable income.

If the reimbursement does not meet accountable plan requirements, it is considered additional compensation and subject to income and payroll taxes. Employees receiving taxable reimbursements will see the amount reflected on their W-2 forms, increasing their total reportable income. This can affect their tax bracket and withholding amounts, potentially leading to a higher tax bill. Since pet care costs are classified as personal expenses, employees cannot deduct them under current tax laws.