Overview of Travel Policy
Presented By:
John Harabedian
Tax Director
2015
1
TAX DEPT WEBSITE





http://uco.rutgers.edu/taxservices
Taxation Topics
Tax Exemption Letters and
Certificates
Tax Links
Senior Tax Accountant - Anelia
Dolan (848) 445-4212
andolan@rci.rutgers.edu
2
TAX DEPT WEBSITE







Tax Topics:
Sales and Use Tax Guidelines and
Resources
Determining Worker Status: Employee or
Independent Contractor(PSP policy)
Student Worker Tax Exemptions
Payments to Nonresident Aliens
Miscellaneous Payments to Individuals,
Awards, Grants, Stipends, and Honoraria
Education Tax Benefits
3
TAX EXEMPT STATUS




Rutgers has dual status as a state
instrumentality (Govt entity) and also
as a 501(c) (3) tax-exempt
organization.
Rutgers is exempt from NJ State
sales tax.
Exemption letters can be obtained
from the Tax Department, and/or tax
website
Hotel Occupancy tax
4
TABER & AUDIT HISTORY






Original Internal Audit Report
Board of Governor Mandate
SCI Report
Other external audits
Approver Responsibilities
Rutgers Audit Process
5
Purpose of Travel, Travel
Incidentals, and Meal Expense
Policy (40.4.1)



To make travelers, approvers, deans,
directors, and department heads aware of
their respective roles and responsibilities
when submitting and approving travel and
business-related expenses.
More restrictive rules/policies may be
specified by the deans, directors, and
department heads of individual schools,
divisions, departments, and/or by the
funding source(s), such as external
sponsors.
To ensure that reimbursements made to
university employees will not be considered
taxable income under IRS regulations by
maintaining an “accountable plan”.
6
“ IRS-Accountable Plan”

Must meet all 3 of the following
conditions or the expenses may be
taxable to the traveler:
There must be a business connection.

All business expenses must be
substantiated (date, amount, place,
and business expense being
submitted to the employer within a
reasonable time period).

Employees are required to return all
advance amounts in excess of
substantiated expenses.
Unallowed expenses must be deducted
at the end of the TABER in the “Less
Amount Disallowed” field or simply not
recorded in a TABER amount.
7


RU TRAVEL.RUTGERS.EDU








Rutgers Policy 40.4.1
TABER form
Per diem meal rates-domestic &
foreign & IRS rates
Oanda currency conversion
Mapquest for mileage
RU Travel agencies
FAQ’s
Lost receipt form
8
Travel And Business Expense
Report (TABER form)



Used for requesting reimbursement
for employees out-of-pocket
expenses incurred while traveling on
University business.
Also used to reimburse other
University business related
expenses such as business meals.
Can be used to purchase small
incidental items under $500
according to the purchasing
guidelines.
9
RBHS Travel forms




RBHS requires pre- approval before
travel is planned
RBHS Travel Approval/Advance
form
RBHS Travel Expense form
RBHS Forms are located at:
https://my.umdnj.edu/cp/home/displa
ylogin
10
Image Now-Scanning Process


TABER (Travel and Business Expense Report)
When submitting a TABER, the legacy Rutgers
Accounts Payable Department requires receipts be
taped on all 4 sides to an 8-1/2 x 11 sheet of paper
so that it can be scanned. You can submit multiple
receipts on a page but do not stack receipts one
behind the other on a single sheet. Any receipt that
is already 8-1/2 x 11 in size or larger can be sent as
with TABER. Please do not staple receipts to the
TABER.
RBHS (Travel expense forms) requires same
procedures for scanning. No staples, tape all
receipts for scanning.
11
A/P Procedures






TABERS arrive in ASB mail
room and are date stamped
Tax Dept selection for audit
Prepared, scanned by AP staff
Input and charged to account
Daily payroll file - for payment
RBHS same process at Liberty
Plaza
12
Travel Advances






Generally requested for hotel deposit,
transportation, meals & incidentals.
Must use the Travel Advance Form (TAF)
available on the RIAS website
RBHS-Travel Approval Advance report
Requests for greater than $100 per day of
travel must have a justification letter
attached request.
Will not be issued more than 2 weeks prior
to the traveler’s departure date.
Exception – Transportation expenses can
be distributed up to 90 days in advance of
departure date.
13
Travel Advances (cont’d)





Settled by submitting TABER or RBHS
Travel Expense Report with appropriate
receipts within 60 days of the traveler’s
return to work.
Must be settled before subsequent
advances are issued.
Alternative - check request if possible for
conference registration or hotel
Send requests to Division of University
Accounting, ASB, Busch Campus, attn:
Lisa Robinson. Questions (x445-3354).
RBHS travel advance contact Gary Kucsan
at kucsangm@ca.rutgers.edu
14
Expense Report Requirements






Detail of the business reason or purpose
for the expenditure, Clear explanations.
Itemization and all original receipts for
every expense over $50,( except meals.)
Original signature of the individual traveler
requesting reimbursement, and
Approval of the TABER by the traveler’s
supervisor or the supervisor’s designee
who does not report to the traveler.
Traveler must submit the expense report
within 60 days.
TABERs submitted beyond one year after
the date(s) of travel will not be reimbursed
15
Reimbursable Travel Expenses

Commercial Air



University will reimburse only for
coach class tickets aboard a regularly
scheduled commercial carrier.
For reimbursement of airline ticket
purchases, proof of payment for the
airline ticket. Boarding passes when
possible are to be submitted with the
TABER.
Commercial Bus/Rail Fares

Reimbursement will be the reasonable
actual cost. The ticket stub or a
detailed receipt must show the fare.
.
16
Reimbursable Travel Expenses
(cont’d)

Lodging Reservations



The trip must be more than 100 miles
one-way. Exceptions must be
approved, explained and included in the
reimbursement request and attached to
the TABER.
The original receipted hotel bill must
substantiate the expenses and must
specify rate, date(s) of stay
Proof of Hotel payment must be
attached to TABER.
17
Reimbursable Travel Expenses
(cont’d)

Car Rental
 Must be a business justification or when
there is no other means of
transportation.
 Reimbursement only to the traveler who
signed the rental agreement
 Original receipts for car rentals and the
rental contract must be attached to the
TABER.
 Should obtain Collision Damage Waiver
Ground Transportation
 Includes business miles from the
traveler’s home, or from their work site
to the airport, bus, or train station @
18
@57.5 cents per mile in 2015.
Commuting miles are not reimbursed
Reimbursable Travel Expenses
(cont’d)

Employee Meal Expenses (3 options)
 Option 1) Reimbursement for actual
expenses up to $60 per day.
 Submit itemized original receipts with
proof of payment. Provide details and
purpose of meeting.
 Do not seek reimbursement for a
meal that is included in travel, such
as at a conference. Conference
agenda is required to substantiate
meals provided at conference.
 Individual meal expense must be a
reasonable portion of the $60/day
option.
.
19
Reimbursable Travel
Expenses (cont’d)
Employee Meal Expenses:
Option 2) Meal allowance – no receipts:
$50 per day from major city chart on
travel web site
 Must be prorated for any day meals
are provided at a conference.
 This option must be used for entire
trip.
 Prorated daily allowance for
departure and arrival times on travel
dates
20
Reimbursable Travel
Expenses (cont’d)
Employee Meal Expenses:
Option 3) IRS federal per diem rate from



travel web site
This option must be used for entire
trip.
Must be prorated for any day meals
are provided at a conference.
Prorated daily allowance for
departure and arrival times on travel
dates
21
Reimbursable Travel
Expenses (cont’d)

Employee Meal Expenses:

% of meal per diem rate when a
meal is provided at conference:
breakfast
20%
lunch
20%
dinner
60%
22
Reimbursable Travel
Expenses (cont’d)

Employee Meal Expenses:

% of meal per diem for
departure date
12:01 am to 7:00am
100%
7:01am to 1:00pm
80%
1:01pm to 7:00pm
60%
7:01pm to 12:pm
0%




23
.
Reimbursable Travel
Expenses (cont’d)

Employee Meal Expenses:

% of meal per diem for arrival or
return date
12:01 am to 7:00am
0%
7:01am to 1:00pm
20%
1:01pm to 7:00pm
40%
7:01pm to 12:pm
100%




24
.
Business Expenses

Business Meals for Meetings



Receipts must be original, itemized and include
the provider’s name and date, the name(s) of
any other person included on the bill, and
purpose of the meeting.
Receipt must indicate that bill was paid. Credit
card receipts alone are not acceptable.
To determine if business meal expense is
appropriate, consult with your supervisor who
should use professional judgment in determining
whether:



Topic of discussion (meeting) warrants use of
University funds for meal expense.
Benefit derived from incurring expense is most
effective, efficient and productive way to use
university resources.
Fund are available.
25
Business Expenses



UNDER $500 small goods and
services for emergency
purposes
All violations must be sent to
purchasing dept for one time
approval if appropriate
Use purchasing dept for goods
and services over $500
26
Relocation/Moving
Expenses



Rutgers Policy Library 60.1.6
Non taxable employee moving expenses:
 Actual moving of household goods, one
way airline fare per person, or mileage
@23 cents per mile in 2015, and hotel if
traveling on ground.
Taxable moving expenses
 Reimbursement for any other moving
expenses, including house hunting,
meals, storage and temporary housing
will be reported as gross wages through
Payroll on a W-2 form .
27
International Travel Policy





Rutgers Policy Library 40.4.2
GAIA-Global Advancement and Int’l
Affairs policy to inform and protect
Employees must register @
//travelregistration.Rutgers.edu
Risk Mgt issues Int’l SOS – an
Emergency Travel Assistance Plan
SOS plan for medical, security and
travel assistance
28
Examples of Noncompliance









Missing the reason or business purpose for the
reimbursement.
Approving of TABER by subordinates.
Failing to provide receipts for all expenses
Expenses that are not Rutgers business-related.
Charging alcohol on state and grant accounts.
Meals included in the cost of conference/meeting
fees
Charging a higher per mileage rate for use of
personal car than allowed by the University.
Seeking reimbursement for mileage and gas
expense concurrently.
Seeking reimbursement for a spouse or family
member’s travel costs
29
.
Subcode Review

Commonly Used:
 3490 Travel Advances
 3500 Travel/Meals
 3510 Travel-Recruitment
 3520 Travel-Domestic-DGCA
 3530 Travel-Foreign-DGCA
 3540 Travel-Consult-DGCA
 3550 Employee Moving Exp
 3560 Training
 3590 Registration/Conf. Fees
For a full listing of expense type sub codes see the
SC screen on OFIS.
30
Expense Report References

Regulations and Procedural Manual


40.4.1 Travel, Travel Incidentals and Meal
Expense Policy
60.1.6 Policies and Procedures Concerning
Employee Relocation

Travel Website www.rutravel.rutgers.edu
See Responsibilities.

Call Dept. Business manager

Tax Dept-Terri Shields, Taber compliance
445-2798
31
Questions/Comments/Thoughts
from Audience???
32