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Submit within 60 days
Submit out-of-pocket expense reports within 60 days of the expense date. For travel, submit within 60 days after the trip ends.
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Avoid taxable reimbursement
Expenses submitted after 60 days are reported as taxable income and are subject to applicable income and employment tax withholding.
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Employees remain responsible
The employee being reimbursed is responsible for timely reporting, even when a delegate submits the expense report on their behalf.
Tax Implications
Late expenses become taxable income.
Expenses submitted after the 60-day period will be reported as taxable income to the employee. Applicable income and employment taxes will be withheld, and the amount will be reported on the employee's Form W-2 (Wage and Tax Statement).
Review the applicable procedures.
The 60-Day Rule is included in the University's Accounts Payable and Employee Travel procedures and supports compliance with IRS safe harbor guidelines.