Candidate interview travel reimbursement policy: what to pay, who books it and how it is taxed
On this page
- What should a candidate travel policy cover?
- Which interview travel costs do employers usually pay?
- Who should book: the company or the candidate?
- The candidate interview travel reimbursement policy template
- How are reimbursed interview expenses taxed?
- Agency or client: who pays for candidate travel?
- Cancellations, reschedules and no-shows
- Emails to send the candidate
- A worked example
- Common mistakes
- Questions people ask
A candidate interview travel reimbursement policy says which travel costs the employer covers when it asks someone to interview in person (usually transport, lodging, mileage and meals), who books them, the limits, the receipts needed, and what happens if the interview is cancelled. On tax, the IRS quotes Revenue Ruling 63-77: reimbursements a prospective employer pays for interviews "conducted at the invitation of the prospective employer" are not wages, and are not part of the candidate's gross income to the extent they do not exceed the expenses incurred (IRS.gov, page reviewed February 19, 2026). For driving, the IRS business mileage rate is 76 cents a mile for July 1 to December 31, 2026 (IRS standard mileage rates, as of October 2026).
Below are the decisions the policy makes, a copy-ready template, the tax point in detail, the agency and client split, cancellation rules and two candidate emails. The directions-and-parking email for the day itself is our onsite interview logistics email; this page is the policy behind the line in that email that says what the company pays for.
What should a candidate travel policy cover?
- Eligibility: which interviews qualify (for example, any onsite round requiring more than [X] miles of travel, or final rounds only).
- Covered costs and the class or standard for each (economy airfare, standard hotel room).
- Booking: company-booked, candidate-booked and reimbursed, or a mix.
- Limits per night, per meal or per trip, and who can approve more.
- Claims: receipts, the deadline to claim and how quickly you pay.
- Agency roles: whether the client or the agency pays, and who books.
- Changes: cancellations, reschedules, no-shows and companions.
Which interview travel costs do employers usually pay?
| Cost | Example rule | Example limit | Receipt |
|---|---|---|---|
| Air or rail | Economy or standard class, booked by the company | Lowest reasonable fare at the time of booking | Booking confirmation |
| Hotel | One night before the interview; a second night if the interview ends late or no return travel is available | Company-booked hotel, or a nightly cap | Itemized hotel bill |
| Personal car | Round-trip miles from home to the interview site | IRS business rate | Mileage log; no fuel receipts needed |
| Taxi, rideshare, parking, tolls | Between airport, hotel and office | Actual cost | Receipt |
| Meals | Meals on travel days not provided by the company | A daily cap | Receipt, or none if you pay a flat allowance |
| Not covered | Alcohol, minibar, entertainment, upgrades, companions' costs | — | — |
If you need a neutral benchmark for caps, the federal government publishes per diem rates. For federal travel from October 1, 2026, the standard rate for the continental US is $113 a night for lodging and $68 a day for meals and incidentals, with higher rates for many cities (GSA per diem bulletin FTR 27-01, as of October 2026). These rates are set for federal employees; using them as your own cap is a choice, not a requirement.
Who should book: the company or the candidate?
Company booking is better for the candidate, who does not have to front several hundred dollars, and gives you control of cost and timing. Candidate booking is simpler for a one-off trip and for candidates with constraints you cannot see, such as childcare or a disability that affects how they travel. A common split: the company books air, rail and hotel; the candidate claims mileage, ground transport and meals. Whatever the split, say it in writing before the candidate books anything, and ask whether they need any adjustment for the travel itself.
The candidate interview travel reimbursement policy template
CANDIDATE INTERVIEW TRAVEL POLICY
[Company name] Owner: [Talent acquisition lead] Effective: [date]
1. WHEN THIS POLICY APPLIES
When [Company] invites a candidate to interview in person at a
location more than [X] miles from the candidate's home. Travel for
interviews the candidate requests in person when video is offered is
[covered / not covered].
2. WHAT WE PAY FOR
- Transport: economy airfare or standard rail, booked by [Company];
or mileage at the IRS business standard mileage rate in effect on
the travel date, for the round trip.
- Lodging: up to [1] night at a hotel booked by [Company], or up to
[$amount] a night if the candidate books, before taxes.
- Ground transport, parking and tolls: actual cost.
- Meals on travel days: up to [$amount] a day, not including meals
[Company] provides.
3. WHAT WE DO NOT PAY FOR
Alcohol, entertainment, upgrades, personal items, travel insurance,
and costs for anyone traveling with the candidate, unless agreed in
writing in advance.
4. HOW TO CLAIM
Send itemized receipts and a mileage log, if driving, to [email]
within [30] days of the interview, using [form / link]. We pay within
[10] business days of a complete claim, by [method]. We do not ask for
bank details by email; [describe secure route].
5. CHANGES AND CANCELLATIONS
- If [Company] cancels or moves the interview, we reimburse
non-refundable costs already incurred and rebook at our cost.
- If the candidate needs to reschedule, we rebook once at our cost.
- If the candidate does not attend without notice, we do not
reimburse costs, and may ask for company-booked costs back only
where agreed in writing before travel.
- Withdrawing after the interview does not affect reimbursement.
6. AGENCY CANDIDATES
For candidates introduced by an agency, [Company / the agency] books
and pays under the terms of business dated [date]. Candidates are told
who to contact before booking.
7. APPROVALS
Costs above these limits need approval from [role] before booking.
8. CONTACT
[Coordinator name, email, phone for travel-day problems]How are reimbursed interview expenses taxed?
The IRS page on nonresident aliens and the accountable plan rules quotes Revenue Ruling 63-77: allowances or reimbursements "made to individuals by a prospective employer for expenses incurred in connection with interviews for possible employment" that are "conducted at the invitation of the prospective employer" are not wages for employment tax and income tax withholding, and, to the extent they do not exceed the expenses incurred, are not in the individual's gross income for federal income tax purposes. Three practical consequences:
- Reimburse actual costs, or a reasonable allowance with a record. The exclusion runs only up to the expenses incurred, which is why the template asks for receipts and a mileage log. A flat "travel bonus" bigger than the costs falls outside it.
- The invitation matters. Keep the email inviting the candidate to the onsite interview with the claim.
- Edge cases need advice. Costs for a partner or children who travel along, payments made by an agency rather than the prospective employer, and state tax treatment are not settled by the ruling text quoted on that page. Ask your tax adviser before writing them into the policy.
The same IRS page covers nonresident aliens, who may also be candidates. This is general information as of October 2026, not tax or legal advice.
Agency or client: who pays for candidate travel?
| Arrangement | How it works | Put in the terms |
|---|---|---|
| Client books and pays | The agency passes travel needs to the client's coordinator | Who the candidate contacts, booking lead time |
| Agency advances, client repays | The agency books and invoices the client at cost | Caps, pre-approval in writing, invoice timing |
| Agency absorbs | Rare; sometimes for retained searches | A cap per search, stated in the fee proposal |
The clause belongs in the agreement, not in a phone call before the first onsite. See the placement fee agreement template and the terms section of the agency client onboarding checklist.
Cancellations, reschedules and no-shows
Most disputes come from changes, not from the original trip. Two habits reduce them. Book changeable fares when the price difference is small, because interview dates move more often than most trips. And put the cancellation rules in the travel email, not only in the policy, so the candidate knows before they travel that a no-show is not reimbursed but an employer cancellation is.
Emails to send the candidate
When you invite the candidate to travel:
Subject: Your onsite interview for [Role]: travel arrangements
Hi [First name],
We would like to invite you to [City] on [date] for the final interview
for [Role]. [Company] will cover your travel:
- [Flight / train]: [Coordinator] will book this. Please reply with
your preferred times and any travel needs by [date].
- Hotel: one night on [date] at [hotel], booked and paid by us.
- Mileage, taxis, parking and meals on travel days: claim afterwards
with receipts, up to [$amount] a day for meals.
If we need to change the date, we will cover any costs you cannot get
back. Full details are in the attached policy.
[Recruiter name]After the interview:
Subject: Claiming your interview travel costs
Hi [First name],
Thanks again for coming in. To claim your costs, send your receipts
[and mileage log] to [email] by [date] using [form/link]. We pay within
[10] business days of receiving everything.
[Coordinator name]A worked example
Example (invented figures). A candidate drives 90 miles each way to a final interview on November 12, 2026, pays $18 for parking, and the company books her hotel the night before.
- Mileage: 180 miles x $0.76 = $136.80, using the IRS business rate for travel on or after July 1, 2026.
- Parking: $18 with a receipt.
- Dinner the night before: $31 with a receipt, under the example $50 daily cap.
- Total reimbursed: $185.80, paid by bank transfer within ten business days. The hotel was paid directly by the company.
Common mistakes
| Mistake | What happens | Fix |
|---|---|---|
| Telling the candidate after they booked | They pay more than your caps and expect you to match | Send the travel email with the invitation |
| Candidate fronts all costs | Candidates with less money opt out of onsite rounds | Company books the expensive items |
| Flat payments above costs | Falls outside the tax exclusion quoted by the IRS | Actual costs with receipts, or a documented allowance |
| No agency clause | Agency and client argue about a trip after it happened | Who pays and books, in the terms of business |
| Slow repayment | A strong candidate's last impression is chasing you for money | A payment deadline in the policy, and a named contact |
Questions people ask
Do companies pay for a candidate's travel to an interview?
Many do for interviews they ask a candidate to travel to, especially final rounds and senior or hard-to-fill roles, but no US federal law requires it. A written policy should say which interviews qualify, which costs are covered, who books them and what receipts are needed, and the candidate should be told before they book anything.
Is interview travel reimbursement taxable for the candidate?
Under Revenue Ruling 63-77, as quoted by the IRS on a page reviewed in February 2026, reimbursements a prospective employer pays for expenses of interviews held at its invitation are not wages, and are not included in the candidate's gross income to the extent they do not exceed the expenses incurred. Payments above actual costs, and costs for people who are not interviewing, need a tax adviser's view. This is not tax advice.
Who pays for candidate travel when a recruiting agency is involved?
Usually the client, because the client is the prospective employer and decides who interviews onsite. The agency's terms of business should say so, along with who books, the caps, and whether the agency may advance costs and invoice them. Without that clause, agencies often end up paying for a trip they did not ask for.
What happens to a candidate's travel costs if the interview is cancelled?
A fair policy reimburses non-refundable costs already incurred when the employer cancels or moves the interview, and does not reimburse a candidate who fails to attend without notice. Booking refundable or changeable fares where the price difference is small reduces the cost of cancellations.