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I didn’t have an owed balance when I quit my job in October, but I very well could have. What happens when an employee has a balance of $500, $1,000 (these would not be personal expenses). Is the employee generally financially responsible for the balance or does the company write it off?
If they are company expenses, they should be all paid by the company.
The acct is theirs
Personal expenses (which should never be charged on company cards) are another story. Those you owe!
When I left one job, there were well over 25,000.00 dollars charged for convention expo expenses. No problem at all
Not understanding. Is the credit card under the company name? Or in YOUR name? If it's in the company name, then the company is responsible for it. If the credit card was opened in YOUR name, then YOU are responsible for it.
Not understanding. Is the credit card under the company name? Or in YOUR name? If it's in the company name, then the company is responsible for it. If the credit card was opened in YOUR name, then YOU are responsible for it.
IF its a CORPORATE CARD then its the COMPANY itself that is accountable per the Corporate card terms of agreement.
This was not true in the two corporations I worked for, one of which was a Fortune 100 company. When you completed the corporate credit card application, they pulled YOUR credit report and if you made late payments, it impacted your credit. When we refinanced our home, I had questions about the corporate American Express because it had no limit.
To answer the OP's question, when we notified them to terminate a corporate card because of an employee termination, the first thing they did was to determine if there were outstanding charges. The manager was typically responsible for making sure the employee cleared all charges with an expense account before they left. This was procedure and with one company, I wouldn't have wanted to have been the manager who didn't ensure that was all squared away before the employee left. The second company was pretty sloppy and I know that after one employee left, there were uncleared charges and they just had the manager review the charges to make sure they appeared to be legitimate. So a lot depends on how locked down your company is with termination - voluntary or involuntary - and how compliant the staff and management is.
This is a common way to do this. And the monthly statement comes directly to the employee, and they have to get their expense reimbursement approved by the company, then they would get payment for it to pay the CC company.
I did indeed have a $0 balance. But, what happens to those departed employees who actually owe a balance? What recourse does a company have to collect from the employee? Over 20 years ago, a company that I worked for OVERPAID me an extra month of payroll (maybe 1 2-week cycle, don’t remember). All they did was ASK to get the $ back, but did not pursue it any further than that.
I’m curious if it’s handled the same way.
when you work for the government, the amount is collected, it can be garnished.
it can also affect/hinder/prevent future employment.
there was a guy who did not turn in a room key 15 years earlier, and when he was being hired for a job(15 years later) it showed up as an uncleared debt.
it can also hold up the final paycheck, not issued until everything is cleared.
This was not true in the two corporations I worked for, one of which was a Fortune 100 company. When you completed the corporate credit card application, they pulled YOUR credit report and if you made late payments, it impacted your credit. When we refinanced our home, I had questions about the corporate American Express because it had no limit.
To answer the OP's question, when we notified them to terminate a corporate card because of an employee termination, the first thing they did was to determine if there were outstanding charges. The manager was typically responsible for making sure the employee cleared all charges with an expense account before they left. This was procedure and with one company, I wouldn't have wanted to have been the manager who didn't ensure that was all squared away before the employee left. The second company was pretty sloppy and I know that after one employee left, there were uncleared charges and they just had the manager review the charges to make sure they appeared to be legitimate. So a lot depends on how locked down your company is with termination - voluntary or involuntary - and how compliant the staff and management is.
So, did you notify the CC company as soon as the employee gave 2-week notice or on (or about) the termination date? In my case, I was able to use the CC until the very last day. The last time that I used it was the next to last day because I had promised to pay something for an agent. If the employer would let the CC company know at the time of the 2-week notice, the CC would be aware of any suspicious/frivolous charges that an employee might make.
In my case, I received about 2-3 more commission checks AFTER I left the company, so they could have easily deducted any owed money from those had I owed money.
I do wonder if I might have overlooked a past PENDING expense that lacked a receipt that I can supply a receipt for this late in the game? I don’t think that there would be any harm in at least asking since I did keep any and all receipts.
Last edited by Hopeful for Life; 02-06-2020 at 11:00 PM..
Based on my own experience, as well as the various answers I'm seeing here - I would say the answer is "it depends on how the company does it".
I've had corp cards w/ my name on it, my name w/ the company name, and the company name only. I've never even considered the notion that I may be on the hook. At some places, I never even see the bill, it just gets paid. At others, I get the paper statement w/ the accounting stamp for signature or the statement is online in the billing systems and I need to approve all purchases.
I've actually never seen these cards on my credit report... not sure if that means anything. I've certainly (to my knowledge) never needed to "apply" for a corporate card. It was just given to me. Even if my employer was to apply on my behalf, I'd think I would still need to approve that per lending regulations..?
I have a corporate card with my name on it. It doesn't affect my credit rating (i.e. if I use up most of the balance, it doesn't affect my personal credit usage ratio. When I pull my credit report, that account is not listed). But statements are sent to me, and if there is a late payment or unpaid balance, the credit issuer will ultimately come to me for payment.
That said, I still can't figure out the situation that OP is talking about. If they are legitimate business charges, the company should pay. If they aren't legitimate business charges, the (former) employee should definitely pay, and the company can (and should) pursue payment. The personal charges shouldn't have been made in the first place.
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