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Overview of Travel PolicyOverview of Travel Policy

Presented By: Presented By: John HarabedianJohn Harabedian

Tax DirectorTax Director20152015

TAX DEPT WEBSITE TAX DEPT WEBSITE

http://uco.rutgers.edu/tax-services

Taxation TopicsTaxation Topics Tax Exemption Letters and Tax Exemption Letters and

CertificatesCertificates Tax LinksTax Links Senior Tax Accountant - Anelia Senior Tax Accountant - Anelia

Dolan (848) 445-4212 Dolan (848) 445-4212 andolan@rci.rutgers.edu

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TAX DEPT WEBSITETAX DEPT WEBSITE

Tax TopicsTax Topics:: Sales and Use Tax Guidelines and Sales and Use Tax Guidelines and

ResourcesResources Determining Worker Status: Employee or Determining Worker Status: Employee or

Independent Contractor(PSP policy)Independent Contractor(PSP policy) Student Worker Tax ExemptionsStudent Worker Tax Exemptions Payments to Nonresident AliensPayments to Nonresident Aliens Miscellaneous Payments to Individuals, Miscellaneous Payments to Individuals,

Awards, Grants, Stipends, and HonorariaAwards, Grants, Stipends, and Honoraria Education Tax BenefitsEducation Tax Benefits

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TAX EXEMPT STATUSTAX EXEMPT STATUS

Rutgers has dual status as a state Rutgers has dual status as a state instrumentality (Govt entity) and also instrumentality (Govt entity) and also as a 501(c) (3) tax-exempt as a 501(c) (3) tax-exempt organization.organization.

Rutgers is exempt from NJ State Rutgers is exempt from NJ State sales tax. sales tax.

Exemption letters can be obtained Exemption letters can be obtained from the Tax Department, and/or tax from the Tax Department, and/or tax websitewebsite

Hotel Occupancy taxHotel Occupancy tax44

TABER & AUDIT HISTORYTABER & AUDIT HISTORY

Original Internal Audit ReportOriginal Internal Audit Report Board of Governor MandateBoard of Governor Mandate SCI Report SCI Report Other external audits Other external audits Approver Responsibilities Approver Responsibilities Rutgers Audit ProcessRutgers Audit Process

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Purpose of Travel, Travel Purpose of Travel, Travel Incidentals, and Meal Expense Incidentals, and Meal Expense

Policy (40.4.1)Policy (40.4.1) To make travelers, approvers, deans, To make travelers, approvers, deans,

directors, and department heads aware of directors, and department heads aware of their respective roles and responsibilities their respective roles and responsibilities when submitting and approving travel and when submitting and approving travel and business-related expenses.business-related expenses.

More restrictive rules/policies may be More restrictive rules/policies may be specified by the deans, directors, and specified by the deans, directors, and department heads of individual schools, department heads of individual schools, divisions, departments, and/or by the divisions, departments, and/or by the funding source(s), such as external funding source(s), such as external sponsors.sponsors.

To ensure that reimbursements made to To ensure that reimbursements made to university employees will not be considered university employees will not be considered taxable income under IRS regulations by taxable income under IRS regulations by maintaining an maintaining an ““accountable planaccountable plan””..

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““ IRS-Accountable PlanIRS-Accountable Plan”” Must meet all 3 of the following Must meet all 3 of the following

conditions or the expenses may be conditions or the expenses may be taxable to the traveler:taxable to the traveler:

There must be a business connection.There must be a business connection. All business expenses must be All business expenses must be

substantiated (date, amount, place, substantiated (date, amount, place, and business expense being and business expense being submitted to the employer within a submitted to the employer within a reasonable time period).reasonable time period).

Employees are required to return all Employees are required to return all advance amounts in excess of advance amounts in excess of substantiated expensessubstantiated expenses..

Unallowed expenses must be deducted Unallowed expenses must be deducted at the end of the TABER in the at the end of the TABER in the ““Less Less Amount DisallowedAmount Disallowed”” field or simply not field or simply not recorded in a TABER amount.recorded in a TABER amount.

RU TRAVEL.RUTGERS.EDURU TRAVEL.RUTGERS.EDU

Rutgers Policy 40.4.1 Rutgers Policy 40.4.1 TABER TABER formform Per diem meal rates-domestic & Per diem meal rates-domestic &

foreign & IRS ratesforeign & IRS rates Oanda currency conversionOanda currency conversion Mapquest for mileageMapquest for mileage RU Travel agenciesRU Travel agencies FAQFAQ’’ss Lost receipt formLost receipt form

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Travel And Business Expense Travel And Business Expense Report (TABER form) Report (TABER form)

Used for requesting reimbursement Used for requesting reimbursement for employees out-of-pocket for employees out-of-pocket expenses incurred while traveling on expenses incurred while traveling on University business.University business.

Also used to reimburse other Also used to reimburse other University business related University business related expenses such as business meals.expenses such as business meals.

Can be used to purchase small Can be used to purchase small incidental items under $500 incidental items under $500 according to the purchasing according to the purchasing guidelines.guidelines.

RBHS Travel formsRBHS Travel forms

RBHS requires pre- approval before RBHS requires pre- approval before travel is plannedtravel is planned

RBHS Travel Approval/Advance formRBHS Travel Approval/Advance form RBHS Travel Expense formRBHS Travel Expense form RBHS Forms are located at: RBHS Forms are located at:

https://my.umdnj.edu/cp/home/displaylogin

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Image Now-Scanning ProcessImage Now-Scanning Process

TABER (Travel and Business Expense Report) TABER (Travel and Business Expense Report) When submitting a TABER, the legacy Rutgers When submitting a TABER, the legacy Rutgers Accounts Payable Department requires receipts be Accounts Payable Department requires receipts be taped on all 4 sides to an 8-1/2 x 11 sheet of paper 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 so that it can be scanned. You can submit multiple receipts on a page but do not stack receipts one receipts on a page but do not stack receipts one behind the other on a single sheet. Any receipt that 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 is already 8-1/2 x 11 in size or larger can be sent as with TABER. with TABER. Please do not staple Please do not staple receipts to the receipts to the TABER. TABER.

RBHS (Travel expense forms) requires same RBHS (Travel expense forms) requires same procedures for scanning. No staples, tape all procedures for scanning. No staples, tape all receipts for scanning.receipts for scanning.

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A/P ProceduresA/P Procedures

TABERS arrive in ASB mail TABERS arrive in ASB mail room and are date stamped room and are date stamped

Tax Dept selection for auditTax Dept selection for audit Prepared, scanned by AP staff Prepared, scanned by AP staff Input and charged to accountInput and charged to account Daily payroll file - for payment Daily payroll file - for payment RBHS same process at Liberty RBHS same process at Liberty

PlazaPlaza1212

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Travel AdvancesTravel Advances Generally requested for hotel deposit, Generally requested for hotel deposit,

transportation, meals & incidentals.transportation, meals & incidentals. Must use the Travel Advance Form (TAF) Must use the Travel Advance Form (TAF)

available on the RIAS website available on the RIAS website RBHS-Travel Approval Advance reportRBHS-Travel Approval Advance report Requests for greater than $100 per day of Requests for greater than $100 per day of

travel must have a justification letter travel must have a justification letter attached request.attached request.

Will not be issued more than 2 weeks prior Will not be issued more than 2 weeks prior to the travelerto the traveler’’s departure date.s departure date.

Exception – Transportation expenses can Exception – Transportation expenses can be distributed up to 90 days in advance of be distributed up to 90 days in advance of departure date.departure date.

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Travel Advances (contTravel Advances (cont’’d)d)

Settled by submitting TABER or RBHS Settled by submitting TABER or RBHS Travel Expense Report with appropriate Travel Expense Report with appropriate receipts within 60 days of the travelerreceipts within 60 days of the traveler’’s s return to work.return to work.

Must be settled before subsequent Must be settled before subsequent advances are issued.advances are issued.

Alternative - check request if possible for Alternative - check request if possible for conference registration or hotelconference registration or hotel

Send requests to Division of University Send requests to Division of University Accounting, ASB, Busch Campus, attn: Accounting, ASB, Busch Campus, attn: Lisa Robinson. Questions (x445-3354).Lisa Robinson. Questions (x445-3354).

RBHS travel advance contact Gary Kucsan RBHS travel advance contact Gary Kucsan at kucsangm@ca.rutgers.eduat kucsangm@ca.rutgers.edu

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Expense Report RequirementsExpense Report Requirements

Detail of the business reason or Detail of the business reason or purpose purpose for the expenditure, Clear explanations.for the expenditure, Clear explanations.

Itemization and Itemization and all original receiptsall original receipts for for every expense over $50,( except meals.) every expense over $50,( except meals.)

Original signature of the individual traveler Original signature of the individual traveler requesting reimbursement, and requesting reimbursement, and

Approval of the TABER by the travelerApproval of the TABER by the traveler’’s s supervisor or the supervisorsupervisor or the supervisor’’s designee s designee who does not report to the traveler.who does not report to the traveler.

Traveler must submit the expense report Traveler must submit the expense report within 60 days.within 60 days.

TABERs submitted beyond one year after TABERs submitted beyond one year after the date(s) of travel will not be reimbursedthe date(s) of travel will not be reimbursed

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Reimbursable Travel ExpensesReimbursable Travel Expenses Commercial AirCommercial Air

University will reimburse only for University will reimburse only for coach class tickets aboard a regularly coach class tickets aboard a regularly scheduled commercial carrier.scheduled commercial carrier.

For reimbursement of airline ticket For reimbursement of airline ticket purchases, purchases, proof of payment proof of payment for the for the airline ticket. Boarding passes when airline ticket. Boarding passes when possible are to be submitted with the possible are to be submitted with the TABER.TABER.

Commercial Bus/Rail FaresCommercial Bus/Rail Fares Reimbursement will be the reasonable Reimbursement will be the reasonable

actual cost. The ticket stub or a actual cost. The ticket stub or a detailed receipt must show the fare.detailed receipt must show the fare.

..

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Reimbursable Travel Expenses Reimbursable Travel Expenses (cont(cont’’d)d)

Lodging ReservationsLodging Reservations The trip must be more than 100 miles The trip must be more than 100 miles

one-way. Exceptions must be one-way. Exceptions must be approved, explained and included in the approved, explained and included in the reimbursement request and attached to reimbursement request and attached to the TABER.the TABER.

The original receipted hotel bill must The original receipted hotel bill must substantiate the expenses and must substantiate the expenses and must specify rate, date(s) of stayspecify rate, date(s) of stay

Proof of Hotel payment must be Proof of Hotel payment must be attached to TABER.attached to TABER.

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Reimbursable Travel Expenses Reimbursable Travel Expenses (cont(cont’’d)d)

Car RentalCar Rental Must be a business justification or when Must be a business justification or when

there is no other means of transportation.there is no other means of transportation. Reimbursement only to the traveler who Reimbursement only to the traveler who

signed the rental agreement signed the rental agreement Original receipts for car rentals and the Original receipts for car rentals and the

rental contract must be attached to the rental contract must be attached to the TABER.TABER.

Should obtain Collision Damage Waiver Should obtain Collision Damage Waiver

Ground TransportationGround Transportation Includes business miles from the travelerIncludes business miles from the traveler’’s s

home, or from their work site to the airport, home, or from their work site to the airport, bus, or train station @ @57.5 cents per bus, or train station @ @57.5 cents per mile in 2015. Commuting miles are not mile in 2015. Commuting miles are not reimbursedreimbursed

A Component of the Business/Accounting/Certificate Program.A Component of the Business/Accounting/Certificate Program.

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Reimbursable Travel Expenses Reimbursable Travel Expenses (cont(cont’’d)d)

Employee Meal Expenses (3 options)Employee Meal Expenses (3 options) Option 1) Reimbursement for actual Option 1) Reimbursement for actual

expenses up to $60 per day.expenses up to $60 per day. Submit itemized original receipts with Submit itemized original receipts with

proof of payment. Provide details and proof of payment. Provide details and purpose of meeting.purpose of meeting.

Do not seek reimbursement for a Do not seek reimbursement for a meal that is included in travel, such meal that is included in travel, such as at a conference. Conference as at a conference. Conference agenda is required to substantiate agenda is required to substantiate meals provided at conference.meals provided at conference.

Individual meal expense must be a Individual meal expense must be a reasonable portion of the $60/day reasonable portion of the $60/day option.option.

..

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Reimbursable Travel Reimbursable Travel Expenses (contExpenses (cont’’d)d)

Employee Meal Expenses:Employee Meal Expenses:

Option 2) Meal allowance – no receipts: Option 2) Meal allowance – no receipts: $50 per day from major city chart on $50 per day from major city chart on travel web sitetravel web site

Must be prorated for any day meals Must be prorated for any day meals are provided at a conference.are provided at a conference.

This option must be used for entire This option must be used for entire trip.trip.

Prorated daily allowance for Prorated daily allowance for departure and arrival times on travel departure and arrival times on travel datesdates

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Reimbursable Travel Reimbursable Travel Expenses (contExpenses (cont’’d)d)

Employee Meal ExpensesEmployee Meal Expenses::

Option 3) Option 3) IRS federal per diem rate from IRS federal per diem rate from travel web site travel web site

This option must be used for entire This option must be used for entire trip.trip.

Must be prorated for any day meals Must be prorated for any day meals are provided at a conference.are provided at a conference.

Prorated daily allowance for Prorated daily allowance for departure and arrival times on travel departure and arrival times on travel datesdates

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Reimbursable Travel Reimbursable Travel Expenses (contExpenses (cont’’d)d) Employee Meal Expenses:Employee Meal Expenses:

% of meal per diem rate when a % of meal per diem rate when a meal is provided at conference: meal is provided at conference:

breakfast 20%breakfast 20%

lunch 20%lunch 20%

dinner 60%dinner 60%

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Reimbursable Travel Reimbursable Travel Expenses (contExpenses (cont’’d)d) Employee Meal Expenses:Employee Meal Expenses: % of meal per diem for % of meal per diem for

departure datedeparture date 12:01 am to 7:00am 100%12:01 am to 7:00am 100% 7:01am to 1:00pm 80%7:01am to 1:00pm 80% 1:01pm to 7:00pm 60%1:01pm to 7:00pm 60% 7:01pm to 12:pm 0%7:01pm to 12:pm 0%

.

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Reimbursable Travel Reimbursable Travel Expenses (contExpenses (cont’’d)d) Employee Meal Expenses:Employee Meal Expenses: % of meal per diem for arrival or % of meal per diem for arrival or

return datereturn date 12:01 am to 7:00am 0%12:01 am to 7:00am 0% 7:01am to 1:00pm 20%7:01am to 1:00pm 20% 1:01pm to 7:00pm 40%1:01pm to 7:00pm 40% 7:01pm to 12:pm 100%7:01pm to 12:pm 100%

.

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Business Expenses Business Expenses Business Meals for MeetingsBusiness Meals for Meetings

Receipts must be original, itemized and include Receipts must be original, itemized and include the providerthe provider’’s name and date, the name(s) of s name and date, the name(s) of any other person included on the bill, and any other person included on the bill, and purpose of the meeting. purpose of the meeting.

Receipt must indicate that bill was paid. Credit Receipt must indicate that bill was paid. Credit card receipts alone are not acceptable.card receipts alone are not acceptable.

To determine if business meal expense is To determine if business meal expense is appropriate, consult with your supervisor who appropriate, consult with your supervisor who should use professional judgment in determining should use professional judgment in determining whether:whether:

Topic of discussion (meeting) warrants use of Topic of discussion (meeting) warrants use of University funds for meal expense.University funds for meal expense.

Benefit derived from incurring expense is most Benefit derived from incurring expense is most effective, efficient and productive way to use effective, efficient and productive way to use university resources.university resources.

Fund are available.Fund are available.

Business ExpensesBusiness Expenses

UNDER $500 small goods and UNDER $500 small goods and services for emergency services for emergency purposespurposes

All violations must be sent to All violations must be sent to purchasing dept for one time purchasing dept for one time approval if appropriateapproval if appropriate

Use purchasing dept for goods Use purchasing dept for goods and services over $500 and services over $500

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Relocation/Moving Relocation/Moving Expenses Expenses Rutgers Policy Library 60.1.6 Rutgers Policy Library 60.1.6 Non taxable employee moving expenses:Non taxable employee moving expenses:

Actual moving of household goods, one Actual moving of household goods, one way airline fare per person, or mileage way airline fare per person, or mileage @23 cents per mile in 2015, and hotel if @23 cents per mile in 2015, and hotel if traveling on ground.traveling on ground.

Taxable moving expensesTaxable moving expenses Reimbursement for any other moving Reimbursement for any other moving

expenses, including house hunting, expenses, including house hunting, meals, storage and temporary housing meals, storage and temporary housing will be reported as gross wages through will be reported as gross wages through Payroll on a W-2 form .Payroll on a W-2 form .

International Travel PolicyInternational Travel Policy

Rutgers Policy Library 40.4.2Rutgers Policy Library 40.4.2 GAIA-Global Advancement and IntGAIA-Global Advancement and Int’’l l

Affairs policy to inform and protect Affairs policy to inform and protect Employees must register @ Employees must register @

//travelregistration.Rutgers.edu//travelregistration.Rutgers.edu Risk Mgt issues IntRisk Mgt issues Int’’l SOS – an l SOS – an

Emergency Travel Assistance PlanEmergency Travel Assistance Plan SOS plan for medical, security and SOS plan for medical, security and

travel assistancetravel assistance

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Examples of NoncomplianceExamples of Noncompliance Missing the reason or business purpose for the Missing the reason or business purpose for the

reimbursement.reimbursement. Approving of TABER by subordinates.Approving of TABER by subordinates. Failing to provide receipts for all expensesFailing to provide receipts for all expenses Expenses that are not Rutgers business-related.Expenses that are not Rutgers business-related. Charging alcohol on state and grant accounts.Charging alcohol on state and grant accounts. Meals included in the cost of conference/meeting Meals included in the cost of conference/meeting

feesfees Charging a higher per mileage rate for use of Charging a higher per mileage rate for use of

personal car than allowed by the University. personal car than allowed by the University. Seeking reimbursement for mileage and gas Seeking reimbursement for mileage and gas

expense concurrently.expense concurrently. Seeking reimbursement for a spouse or family Seeking reimbursement for a spouse or family

membermember’’s travel costss travel costs

..

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Subcode ReviewSubcode Review Commonly Used:Commonly Used:

3490 Travel Advances3490 Travel Advances 3500 Travel/Meals3500 Travel/Meals 3510 Travel-Recruitment3510 Travel-Recruitment 3520 Travel-Domestic-DGCA3520 Travel-Domestic-DGCA 3530 Travel-Foreign-DGCA3530 Travel-Foreign-DGCA 3540 Travel-Consult-DGCA3540 Travel-Consult-DGCA 3550 Employee Moving Exp3550 Employee Moving Exp 3560 Training3560 Training 3590 Registration/Conf. Fees3590 Registration/Conf. Fees

For a full listing of expense type sub codes see the For a full listing of expense type sub codes see the SC screen on OFIS.SC screen on OFIS.

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Expense Report ReferencesExpense Report References Regulations and Procedural ManualRegulations and Procedural Manual

40.4.1 Travel, Travel Incidentals and Meal 40.4.1 Travel, Travel Incidentals and Meal Expense PolicyExpense Policy

60.1.6 Policies and Procedures Concerning 60.1.6 Policies and Procedures Concerning Employee RelocationEmployee Relocation

Travel Website Travel Website www.rutravel.rutgers.edu See Responsibilities.Responsibilities.

Call Dept. Business managerCall Dept. Business manager

Tax Dept-Terri Shields, Taber compliance Tax Dept-Terri Shields, Taber compliance 445-2798445-2798

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Questions/Comments/Thoughts Questions/Comments/Thoughts

from Audience??? from Audience???