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The Right Choice for Your Success

File Code: ADM.PROMPTSUB.POL
Approval Date: 11/13/07
Approved By: President

Policy on Prompt Submission of Employee Reimbursements

I. Preface

This policy is being instituted in compliance with IRS Publication 535 and became effective for reimbursements made on or after January 1, 2007.

IRS Publication 535 indicates that reimbursements to employees for deductible expenses incurred while performing services are not taxable if 1) paid or incurred while performing services as an employee, 2) adequately accounted for within a reasonable period of time. A reasonable period of time is defined as within 60 calendar days after the expenses were paid or incurred.

For purposes of this policy, graduate assistants are considered students and therefore reimbursements to graduate assistants are not added to taxable wages if not accounted for in a reasonable period of time.

II. Reimbursement Process

A. Employees occasionally use personal funds to purchase supplies and services for University business. Examples of the use of personal funds for University business are travel expenses, moving expenses, and the occasional purchase of commodities.

B. To receive reimbursement for personal funds expended for University business, the appropriate form (either a travel voucher or a Direct Payment Authorization (DPA)) must be completed and submitted to Business Services for processing within 60 calendar days. All receipts along with proof of payment must be attached to the applicable form.

C. DPAs or travel vouchers received outside the 60 calendar day window will be required to have the Prompt Submission of Employee Reimbursements Justification form attached prior to processing.

D. Once all documentation including the completed exception form is attached, the individual will be reimbursed.

  1. 1. In order for an exception to be approved, the respective Vice President along with the Vice President for Administrative Services must approve.
  2. Business Services determines whether an exception is warranted and if warranted obtains Vice Presidential approval.
  3. Lost receipts or ignorance of the policy are not valid reasons for an exception.
  4. If an exception is approved, the employee will be reimbursed and no further processing is required.
  5. If an exception is not approved, the employee will be reimbursed and the amount of the reimbursement will be forwarded to the Payroll Office for inclusion in wages as a taxable fringe benefit. The taxable amount will be included on the next payday in accordance with payroll cutoff dates whereby applicable taxes will be withheld.

III. Guidelines for determining start of 60 day clock

A. Travel Vouchers

  1. In general, the 60 day clock will begin on the last date of travel.

    2. a. Each trip will be counted separately on travel vouchers containing multiple trips.
    b. Amendments to travel vouchers previously submitted will be considered within 60 calendar days if the original travel voucher was received within 60 calendar days.
    c. In cases where the traveler adequately accounted to the department for travel expenses within 60 calendar days but the department did not submit the voucher because of funding concerns, the justification form will be required documenting the date the travel voucher was received in the department and the reason for the delay.

  2. Instructors teaching courses at extension sites and observing student teachers customarily submit travel vouchers at the end of the teaching assignment on a semester-by-semester basis. The 60 day clock will begin on the last day of travel when reimbursing for these purposes.

B. Moving Expenses

  1. In general, the 60 day clock will begin on the end date of the move.
  2. However, in the case of faculty who are hired contingent on receiving credentials, the 60 day clock will begin on the date that the credentials were received.

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  3. The Prompt Submission of Employee Reimbursements Justification form must be attached documenting the circumstances and indicating when the credentials were received.

C. Miscellaneous Expense Reimbursements

  1. In general, the 60 day clock will begin on the date the expenses were incurred.
  2. However, for the reimbursement of conference registrations, the clock will not begin until the last day of the conference.