what is tr concessions/fts allowance meaning

Natashya

2 min read

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23-12-2024

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Understanding the intricacies of travel allowances, particularly those related to transportation, can be confusing. This article aims to clarify the meaning of "TR Concessions/FTS Allowance," often encountered in employment contracts or travel expense policies. We'll break down the terminology, explore its implications, and offer practical examples.

Deciphering the Terminology: TR Concessions and FTS Allowance

The terms "TR Concessions" and "FTS Allowance" often appear together, representing different aspects of travel expense reimbursements. Let's dissect each:

TR Concessions

"TR" typically stands for "Transportation" or "Travel." "Concessions" refers to reduced fares or discounted rates offered by transportation providers. These could include:

• Airline discounts: Special rates for employees of specific companies or those traveling for business.
• Rail discounts: Reduced fares on train journeys.
• Bus discounts: Similar reductions on bus travel.

These concessions represent a cost-saving measure for the employer, allowing them to cover travel expenses more efficiently.

FTS Allowance (Frequently Asked Questions)

FTS typically stands for "Fare, Transportation, and Subsistence." While the precise definition can vary based on company policy, an FTS allowance generally encompasses:

• Airfare: The cost of airline tickets.
• Ground transportation: Expenses related to taxis, rideshares, or public transport.
• Subsistence: Costs associated with lodging, meals, and incidental expenses during travel.

An FTS allowance is a fixed sum of money provided to cover these travel-related costs. It differs from TR concessions in that it's a pre-determined amount rather than a reimbursement of actual expenses at a discounted rate.

How TR Concessions and FTS Allowance Work Together

Often, companies combine TR Concessions and FTS allowances to manage employee travel expenses. The approach might look like this:

1. Attempt to secure TR concessions: The company first tries to obtain discounted travel fares using corporate accounts or negotiated rates.
2. Supplement with FTS allowance: If the discounted fares don't cover the total travel cost, the remaining amount is covered by the employee's FTS allowance.
3. Policy Variation: Specific policies dictate how much of the cost is covered by concessions and allowances, with some companies requiring employees to exhaust concession options before utilizing the FTS allowance.

This combined approach ensures cost-effectiveness for the company while providing employees with a clear and predictable method for reimbursing travel expenses.

Examples: Understanding Real-World Applications

Let's illustrate with some examples:

Example 1: An employee needs to travel for a business trip. The company secures an airline ticket at a discounted rate of $500 (TR Concession). The total cost of the trip, including ground transportation and accommodation, is $1000. The employee receives an FTS allowance of $500, covering the remaining cost.

Example 2: The same employee books a flight for $800 without using a company discount. Their FTS Allowance is $700. They must cover the additional $100 from their personal funds.

Conclusion

Understanding TR Concessions and FTS Allowance is crucial for both employers and employees. For employers, it's a way to streamline travel expense management and reduce costs. For employees, it provides clarity regarding travel reimbursements and helps avoid unexpected expenses. Always consult your company's travel policy for specific details on how these allowances work within your organization. This policy should clearly outline eligible expenses, reimbursement procedures, and any limitations or restrictions. Remember to maintain proper documentation for all travel-related expenses to ensure a smooth and hassle-free reimbursement process.