Lobbying Agent vs Employer Expenditures

What is the difference between agent and employer expenditures?

Expenditures should be reported as either an Agent expenditure or an Employer expenditure on the activity and expenditure reports. When determining whether an expenditure should be reported as an agent expense or an employer expense use the “point of sale” test whenever possible. Even when a corporate card is used, if the agent is conducting the transaction then the agent has “made” the expenditure. The same holds true when cash is used. Reimbursement should not be a factor when determining who made the expenditure.

Employer expenditures are those expenditures which are directly paid for or provided by the employer. For example, a luncheon hosted in the corporate dining hall is an employer expenditure regardless of who is in attendance. Football tickets provided by a representative of the employer, who is not a legislate agent, are an employer expenditure. A dinner expensed by a CEO, who is not a legislative agent, is an employer expenditure.

When making a determination as to who “made” the expenditure, ask how the expenditure is perceived by the recipient at the time it is made. If Legislative Agent X picks up the tab for our lunch together, I am likely to see the expenditure as being made by Legislative Agent X, regardless of whether he uses a personal credit card, corporate card, or cash, for which he will later be reimbursed. If I attend a baseball game and sit in the Acme Corporate loge, I am likely to perceive that I am the guest of Acme even if Acme’s legislative agent is in attendance.