帝王会所

帝王会所 reimburses business and travel expenses in accordance with University Policy 41.121 Reimbursement for official travel and entertainment.  In February, an interim change to this policy was approved to keep the university in compliance with .   Reimbursements must now be submitted within 60 days for them to avoid being treated as taxable income.   This article details the background to the change as well how to stay compliant with the policy.

requires that the university must have an accountable plan for business and travel expense reimbursements, to exclude reimbursements of business expenses from being reported as taxable income. The plan/policy must meet the following rules:

• Your expenses must have a business connection, that is, you must have paid or incurred deductible expenses while performing services as an employee of your employer for a business purpose.
• You must adequately account to your employer for these expenses within a reasonable period of time.
• You must return any excess reimbursement or allowance within a reasonable period of time.

Previously, the IRS did not define a reasonable period of time in which a reimbursement must be made for it to be excludable from taxable income. When IRS Publication 463 was revised, the IRS defined a reasonable period for expense reimbursements as 鈥渁dequately accounted for within 60 days after they were paid or incurred鈥�.

As announced in February 24^th issue of the 帝王会所 Employee News, the Executive Staff Policy Committee (ESPC) approved Policy 41.121 Reimbursement for official travel and entertainment, as an interim policy. The update brings the University policy language into compliance with . The following language has been added to the policy to clarify this requirement:

• If the reimbursement is substantiated within 60 calendar days of when the expense was paid or incurred, and all other requirements of this policy are met, the reimbursement will be treated as a nontaxable reimbursement of a university business expense.
• If the reimbursement is substantiated more than 60 calendar days after the expenses were paid or incurred, the reimbursement will be reported to the IRS as taxable income paid to the individual. The amount of the reimbursement will be reported to University Human Resources and added to the employee鈥檚 W-2, and taxes will be withheld from pay.

Employee Expense Reimbursements

Concur is set up to alert users when they are submitting transactions that are older than 60 days. In the example below the transaction in the report is over 60 days old. The user is cautioned that their transaction is older than 60 days and encourages more timely submission in the future.

Employee expense reimbursements that exceed 60 days will be reimbursed; however, the reimbursement amount will be reported to Payroll and will be treated as part of the employee鈥檚 taxable income. All applicable taxes will be withheld, and the taxable expense reimbursement will be reported as part of your income on your annual W-2. Please note that expense reimbursements will not have retirement withheld as this is not eligible income for purposes of retirement withholdings.

Please Note: This 60-day rule is for expense reimbursements only. PCard transactions must still be submitted within 28 days, and approved within 9 days, in accordance with Policy 55.074.

To avoid being taxed, please submit your reimbursement request in advance of the 60 day rule. It is the responsibility of the employee to ensure that the report is submitted through Concur on a timely basis.

Student and University Guest Reimbursements

Reimbursements to students and University guests are submitted through BobcatBUY on a Payment Request form. If the proof of original payment shows that the expense is more than 60 days after it was paid or incurred, the reimbursements will be processed in full. The Accounts Payable office will record the reimbursement as taxable income in our records. If an individual receives more than $600 in taxable income from the University, they will receive a 1099 for the calendar year in which it is received.

Calendar Year 2025 Review

Finance is reviewing expense reimbursement reports submitted on or after January 1, 2025 for compliance with this policy. This will be done on at least a monthly basis. Any expense reimbursements that exceed the 60 day requirement will be reported as taxable income.

Questions?

If you have any questions, please submit a .