IRS publication requires employee expenses be submitted within 60 days for reimbursement
Internal Revenue Service (IRS) Publication 463 provides requirements that must be met for employee reimbursements to be considered non-taxable. UF must comply with these requirements to ensure the tax-exempt status of the university’s employee reimbursement plan is not jeopardized.
To address the requirements of IRS Publication 463, all expense reports for travel or other employee reimbursements must now be submitted and approved in the myUFL accounting system in accordance with the following rules:
- Employees must submit their expenses no later than 60 days after the expenses were paid or after the date of return from travel.
- All expenses must have a business connection and have been incurred on behalf of the university or direct support organization.
These requirements must be met for employee reimbursements to be considered non-taxable. If expense reimbursements are not submitted and approved within the 60-day limit, the amount ultimately paid to the employee will be included in the employee’s annual W-2 as taxable income.
Travel advance settlements
According to the State of Florida Disbursements Guide, any traveler who has received a travel advance must complete a travel reimbursement form and submit it to UF within 10 workdays of the traveler’s return. Employees must return any excess reimbursement or allowance within a reasonable time. Defined by the State of Florida Disbursements Guide, these items should be accounted for within 10 days after the expenses were paid or after the date of return from travel and no later than 30 days after the expense was paid or incurred.
Questions? Contact Randy Staples, associate controller for University Disbursements, at (352) 392-1241 or firstname.lastname@example.org.