November 3rd, 2022
To avoid tax consequences on expense reimbursements, University employees should remember the 60-Day Rule:
Expense reports for out-of-pocket expenses must be submitted within 60 days from the date the expense was incurred (in the case of travel, within 60 days from end of trip).
Per federal tax regulations, expenses submitted after 60 days will be reported as taxable income to the employee, and applicable Federal, State, FICA and Medicare taxes will be deducted from a subsequent salary check.
Timely reporting and submission of expense reports is the responsibility of the employee being reimbursed regardless of whether the employee self-submits or has designated a delegate for expense reporting.
When combining smaller instances into one expense report, employees are encouraged to submit at least once a month. (For example, mileage logs or multiple small out-of-pocket expenses)
The 60-Day Rule is stated in the University’s spending and travel policies and is necessary to comply with the IRS safe-harbor guidelines for expense reimbursements. For more information, refer to the following website links: