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Out-of-Pocket Expenses

   Also found in: Legal, Idioms, Wikipedia 0.01 sec.
Out-of-Pocket Expenses
Expenses that one must pay from one's personal, instead of business, income. Out-of-pocket expenses include mundane, recurring expenses such as paying the home electric bill or buying groceries. Often, however, the term refers to expenses incurred by an employee in the service of the employer. For instance, an employee may buy a more efficient computer program to accomplish his/her office work. These out-of-pocket expenses are usually reimbursed by the employer. Some out-of-pocket expenses, especially those related to education or health care, are tax deductible.


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FSAs are used to pay for those out-of-pocket expenses that can hurt an employee's pocketbook--things such as co-pays, co-insurance, prescriptions, high-cost dental treatments and necessary vision care such as glasses and contact lenses.
But they provide a greater range of health benefits for the lowest out-of-pocket expenses.
Foley's fifth annual study on SOX costs revealed that while internal costs have gone down, other out-of-pocket expenses, such as audit fees, board compensation, and legal fees, rose over the past year, and, on average, external audit fees have increased 271 percent between fiscal years 2001 and 2006 for companies with under $1 billion in revenue.
 
 
 
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