What is the 60-day policy for submission of reimbursement?
Reimbursement requests submitted by the expense owner more than 60 days after an expense has occurred may be reported as taxable income unless a reasonable justification for the delay is submitted and it is approved by UPAY through the expense report in Chrome River.
The justification is processed through Chrome River and is granted on a case-by-case basis, depending on individual circumstances. With Chrome River we are now able to monitor these situations with more emphasis. Reasonable justifications include unforeseen events, such as:
- Employee was not able to submit a request for his/her reimbursements because of an illness, a death in the family, or an act of nature.
- Employee was out of the country for an extended period of time and was unable to submit receipts and a request for reimbursement.
- Funding from another institution or agency was delayed.
- Employee was on leave or traveling and was not in the office long enough to submit a request for reimbursement.
Under IRS regulations, business expenses are reimbursed as nontaxable income to the employee only when adequate documentation to request a reimbursement is submitted to University Payables within 60 calendar days of:
- the last day of travel (for travel reimbursements) or
- the date that the business expense was paid or incurred by the employee (for miscellaneous reimbursements).
If the request is submitted more than 60 days of these dates, the reimbursement may be considered taxable income to the employee and included on a subsequent employee's Form W-2. Submitting an expense after 60 days will delay the processing significantly, so it is in employee's best interest to submit their expense reports within 60 days of the expense's occurrence.
Subscribe today
To make sure you keep up on the latest information, be sure to opt into future communications about the Chrome River application by subscribing to the email distribution list for University Payables.
Contact
If you have questions about Chrome River, please use the Service Request Form. For Chrome River Specific issues and feedback, please select University Payables (Invoice, Vendor ID, Travel, PCard), which will enable you to specifically select Chrome River Inquiries.
