COMBINED OUT-OF-STATE AND IN-STATE
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Travel vouchers are the forms used to record all reimbursable faculty and staff travel costs. There are two kinds of travel vouchers: in-state and out-of-state. The total request for reimbursement must be submitted after completion of the trip. Receipts and other documentation of the total costs of the trip (including any prepaid expenses) must be submitted along with the travel voucher. In cases where the department does not wish to cover the entire cost of travel at the time of the initial request for reimbursement, the entire travel package with all supporting documentation must still be submitted to accounts payable with the initial request for partial reimbursement. If funds become available at a later date, the department may submit a request for additional reimbursement. A copy of the supporting documentation to the original package should, also, be attached to subsequent requests for partial reimbursement. If the travel voucher is submitted more than 60 days after the traveler's return, the reimbursement will be taxable income to the employee. Tax withholding will be made from a subsequent salary check. (Federal tax regulations require that substantiation of reimbursed expenses be made within a reasonable period. Under the IRS safe-harbor rule, that period is 60 days). The travel voucher must be signed on the line marked "Signature of Claimant" by the employee who traveled. The employee's signature acknowledges acceptance of the terms and conditions of reimbursement. If a University employee pays reimbursable travel expenses for a fellow employee, both employees must sign the travel voucher, certifying the payment arrangements. Any expenses covered by a third party should be noted on the travel voucher. 3. Documentation of Costs After returning from official travel, faculty and staff are required by the University to present original receipts for all travel expenses that require documentation: that is, lodging, airfare, rail fare, car rental and gasoline, and any unusual expenses. In addition, the IRS requires that all University-reimbursed travel expenses of $75 or more be documented. When original receipts are unavailable, the University may consider accepting the following documentation of incurred expenses:
Conference registration fees paid personally by a participating University employee are reimbursable following the conference. To claim reimbursement, any conference brochures or other literature documenting the expense, a registration receipt, or other proof of payment (see the list above) must be submitted along with the travel voucher. Documentation must include information detailing meals included in a registration fee. This might be the conference registration inofrmation or the daily meeting schedules. 4. Approval of Travel Reimbursement The University requires that travel vouchers be signed by the supervisor of the employee who is requesting reimbursement for official travel. Even if the traveler is the principal investigator or project director for the account making the reimbursement, he or she does not have the authority to approve the reimbursement. Deans and department heads may establish additional reimbursement-approval policies and procedures for accounts for which they are responsible. 5. Contract and Grant Travel Reimbursement Travel reimbursement from contract and grant funds requires a travel voucher signed by the principal investigator or project director officially responsible for the contract or grant account; this person may not defer this responsibility to anyone else. In addition, the travel voucher must be signed by the principal investigator's or project director's supervisor. If a University employee's travel is funded by a contract or grant, that employee should obtain guidance from the University Contract and Grant Accounting office (318 Rose Administration Building, 348-5592). Reimbursement will be subject to the University's travel policies. The University's federal contract and grant funds may not, by federal law, be used to make reimbursements for business entertainment expenses incurred during official travel. 6. Travel Reimbursement for Executive Officers The University President's and vice presidents' requests for travel reimbursement must be reviewed and approved by the Vice President for Financial Affairs. Reimbursement requests from the Vice President for Financial Affairs must be reviewed and approved by the President. 7. Telephone Calls Business-related calls made during travel are reimbursable, but personal calls to the employee's home or elsewhere are limited to one call per week for every seven days that the employee is in travel status. The only exception is that the University will reimburse the traveler for one call home made upon arrival at his or her destination without regard to the number of anticipated travel days. Personal calls made from a hotel and itemized on the hotel receipt should not be included on the travel voucher, unless the paragraph above applies. Business-related calls should be noted on the travel voucher. 8. Laundry Services An employee may be reimbursed up to $25.00 per week for laundry and dry-cleaning expenses for every seven days in continuous travel status if the University is paying the employee's day-to-day expenses. Only actual laundry and dry-cleaning expenses are reimbursable and receipts are required. 9. Travel during Sabbatical Leave With prior approval from the Provost, travel expenses incurred during a sabbatical leave period may be reimbursed if they are connected to official travel in the performance of University duties. 10. Travel Advances The University of Alabama does not advance funds for travel expenses to its employees. Student /Foundation Advances Spending Policies 11. Multiple Reimbursement No employee may be reimbursed by both the University and another organization for the same travel expenses. Furthermore, no employee may ask the University to prepay any expenses that will, in the employee's expectation, be reimbursed by a third party. 12. Prohibited Expenses The University does not reimburse employees for purchases of alcoholic beverages. The University of Alabama does not reimburse employees for travel expenses incurred by their spouses or other family members except as stated in the Spouse/Family Travel section. Medical expenses incurred during travel may not be reimbursed as travel costs. However, if during official travel an employee becomes incapacitated by an illness or injury covered by the University's sick leave policy, that employee's travel status may be continued. The University does not reimburse employees for the cost of
13. Special Travel Requirements If an employee has special travel requirements that are not covered by the above policies, please explain those requirements in writing to the University's Accounts Payable office (326 Rose Administration Building). Special requirements must be approved prior to travel in order to be eligible for reimbursement. 14. Accounting for Savings by Early Arrival If an employee chooses to arrive early for a conference or meeting to take advantage of reduced airfare, the employee must reconcile the standard economy airfare with the reduced airfare, the additional hotel and meal expenses, and any other expenses that were incurred because of early arrival. This reconciliation should be submitted with the travel voucher. 15. Trip Cancellation If conflicting University business or a compelling personal reason (illness, death in the family) requires an employee to cancel an official trip, reimbursement may be requested from the University for nonrefundable travel expenses incurred before the cancellation.
To prevent potential reimbursement problems, the department should consult the Travel Clerk in Accounts Payable (8-5253) for questions or clarification.
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Cost in Area |
Daily Lodging Allowance* |
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HIGHEST |
$180.00 ** |
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HIGH |
$130.00 |
|
MEDIUM |
$85.00 |
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LOW |
$60.00 |
*This allowance does
not include state and local taxes.
**Except for New York, NY which is $195.
NOTE: For Thursdays
through Sundays during football season, Tuscaloosa is considered
a high cost area.
When an employee presents documentation requesting reimbursement for lodging expenses, itemized folio receipts must accompany the out-of-state travel voucher. Credit card receipts are unacceptable. The dates of occupancy, the number of nights claimed for reimbursement, and the total amount charged for lodging must be recorded on the out-of-state travel voucher.
The names of all occupants of the room must be listed on the out-of-state travel voucher.
3. Meals
Employees traveling out-of-state on official University business are reimbursed for the actual cost of their meals, up to $45.00 a day.
In accordance with federal tax regulations, meal expenses incurred during out of state travel not requiring an overnight stay are treated as income subject to tax withholding as described in Item 1.
In the event that all meals are included in conference registration fees, the employee attending the conference cannot request meal reimbursement. If the cost of only some meals are included in the conference fees, then reimbursement may be requested for meals not provided by the conference. To determine the maximum meal amount allowable for meals not provided, the employee should deduct $10.00 for a provided breakfast or lunch and $25.00 for a conference-provided dinner from the $45.00 maximum.
4. Gratuities
Tips to food servers, taxi drivers, and room cleaning staff are reimbursable when they are at acceptable levels and deemed by administration to be reasonable and necessary. Gratuities claimed as travel expenses should be consistent with the amounts generally accepted in the geographical location for the type of services provided and under any special circumstances.
5. Baggage Handling
Baggage handling expenses will be reimbursed if they are incurred when traveling to or from the place of lodging or when traveling to or from the airport or train station.
COMBINED
OUT-OF-STATE AND IN-STATE
1. Travel Vouchers
When an employee's official University travel consists of both in-state and out-of-state business, and the length of business conducted in-state is longer than 6 hours, an in-state travel voucher should be submitted along with an out-of-state travel voucher. When the in-state business requires less than 6 hours to conduct, all expenses will be reimbursed as out-of-state travel and should be submitted on an out-of-state travel voucher.
When in-state business requires 6 hours or more to conduct, the University reimburses the in-state portion of travel expenses according to the in-state guidelines.
Out-of-state travel expenses will be reimbursed beginning at the last point of official business within the state.
Travel vouchers must be filed within 60 days of travel. Receipts, conference agendas, and other documentation of the total costs of the trip (including any prepaid expenses) must be submitted along with the travel voucher. Any expenses paid by a third party should be noted on the travel voucher.
INTERNATIONAL
Travel is considered international when it occurs anywhere outside the states of the United States of America, the District of Columbia, or Canada.
1. Travel Vouchers
Requests for reimbursement for international employee travel should be submitted on an out-of-state travel voucher. All costs listed on the travel voucher must be recorded in U.S. currency and the exchange rate stated on the voucher.
Note: American Express Corporate Card charges are converted by American Express to U.S. dollars and cents and the exchange rate noted. Other major credit card companies convert foreign currency charges to dollars and cents but don't always show the exchange rate.
Travel vouchers must be filed within 60 days of travel. Receipts and other documentation of the total costs of the trip (including any prepaid expenses) must be submitted along with the travel voucher. Documentation must include information detailing meals included in a registration fee. This might be the conference registration information or the daily meeting schedules. Any expenses paid by a third party should be noted on the travel voucher.
2. Travel Approval
Employees wishing to embark on official University travel in another country must first request prior written approval from the President or his designee. The request must contain a budget for meals and lodging. The approved budget will be submitted with the reimbursement request. Reimbursement for meals and lodging will be based on the approved budget.
For assistance with budgeting, international per diem rates are available at HYPERLINK http://www.state.gov/www/perdiems/index.html
Before using federal contract or grant funds to travel internationally, employees must gain prior approval from the sponsoring agency.
3. Reimbursement for International Travel
All other guidelines governing out-of-state travel reimbursement also govern international travel reimbursement with the exception of the meal and lodging limits (see item 2 above).
INDEPENDENT
CONTRACTORS
Those individuals and companies that have contracted with the University to provide professional services as defined by IRS regulations are independent contractors (IC).
If the agreement with the IC provides for a fee plus travel expenses, reimbursement is made according to the contract signed by the parties but may not exceed the limits stated in the out-of-state travel policies.
PROSPECTIVE
EMPLOYEES
1. Miscellaneous Disbursement Voucher
Requests for reimbursement for the travel expenses of prospective employees must be submitted on a miscellaneous disbursement voucher.
2. Transportation
Prospective employees will be reimbursed for either (a) the actual cost of the 14-day coach/economy airfare plus any ground transportation expenses or (b) mileage at the rate currently allowed by the state of Alabama, whichever is less.
Prospective employees may be provided a rented car to be able to get to and from the airport and to see the Tuscaloosa area.
3. Lodging
Lodging expenses for prospective employees will be reimbursed for the actual cost of a single occupancy room rate.
In the event the hiring department authorizes the reimbursement of travel expenses for the prospective employee's spouse, the amount equal to the double occupancy room rate will be reimbursed.
4. Meals
Prospective employees will be reimbursed for the actual cost of their meals, up to $45.00 a day.
5. Miscellaneous Expenses
The miscellaneous travel expenses of prospective employees will be reimbursed according to the out-of-state travel guidelines.
6. Reimbursement for Prospective Employee Travel
When requesting reimbursement for expenses incurred by the travel of prospective employees, an itemized record of the actual costs of transportation, lodging, meals, and miscellaneous expenses should be included. Itemized folio receipts for lodging expenses and original receipts for all other documentable expenses should be submitted with the miscellaneous disbursement voucher.
When the dean or director, with the department head, of the hiring department authorizes travel expense reimbursement for the spouse of a prospective employee, the traveling expenses incurred by the spouse are reimbursed. The University of Alabama does not reimburse travel expenses of other family members or associates.
When a University department agrees to pay the moving expenses for a new employee, the department should call Purchasing to obtain the name of the moving company under contract. Interstate moves require the use of the moving company with which the University has a contract.
Original receipts supporting expenses should be attached to the miscellaneous disbursement voucher.
Refer to the chart below for subcodes when categorizing payments made for new-employee moving expenses.
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Subcode |
Category of Expense |
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4930 |
Household
moving |
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4931 |
Travel
and lodging during the move |
|
4932 |
Meals during the move |
|
4933 |
Pre-moving
travel and lodging |
|
4934 |
Pre-moving meals |
|
4935 |
Temporary
quarters |
|
4936 |
Temporary quarters meals |
|
4937 |
Miscellaneous (including mileage in excess of $.13 per mile and storage in excess of 30 days) |
Reimbursements for moving expenses are classified as "qualified" and "non-qualified" according to federal tax law.
Qualified moving expense reimbursements include household moving and travel (including up to 30 days of storage) and lodging during the move. If travel includes mileage, the qualified mileage rate is currently $.13 per mile. Such items paid directly to the employee are treated as nontaxable fringe benefits, which are reported as an information item in Box 13 of the employee's W-2 Form at the end of the year. If such payments are made to a third party, such as a moving company, the payments are not required to be reported.
All other moving expense reimbursements are classified as non-qualified and are considered taxable income to the employee. This includes storage costs in excess of 30 days and mileage reimbursed in excess of $.13 per mile. All non-qualified payments will be included in the "Wages" amount reported in Box 1 of the employee's W-2 Form at the end of the year and are subject to tax withholding on a quarterly basis. For example, tax on any non-qualified payments made during April, May or June would be withheld from the employee's paycheck paid nearest to July 31st. Non-qualified payments made to third parties, such as a hotel, will be classified and treated as if the payment had been made directly to the employee.
VOLUNTEERS
Individuals who perform services for The University of Alabama without receiving compensation for those services are considered volunteers.
1. Eligibility Requirements
Volunteers are eligible for actual travel expense reimbursement when they meet all of the following three conditions:
- They are traveling at the specific request of the University on official University business
- They do not receive compensation from any source for performing this service for the University
- They are not employees of The University of Alabama or of any other state entity that would subject them to state per diem regulations.
2. Reimbursement for Volunteer Travel
Requests for travel expense reimbursement for volunteers should be made on miscellaneous disbursement vouchers by the department for which the service was performed.
The service performed by the volunteer should be described in detail, and the volunteer's eligibility for reimbursement established, on the miscellaneous disbursement voucher. It should be clearly stated on the voucher that no fee for services is being paid.
An itemized record and all original receipts for the actual transportation, lodging, meals, and miscellaneous expenses incurred by the volunteer should be submitted with the miscellaneous disbursement voucher.
FACULTY
AND STAFF RETREATS
Departments planning retreats should contact the Accounts Payable Supervisor at 348-2961 for detailed instructions regarding retreat planning and expenditure approval.
1. Retreat Approval
A department wishing to engage in a retreat must first gain written approval from the appropriate vice president.
Retreat organizers must submit all expense vouchers together to Accounts Payable for review.
2. Agenda and Participant List
A retreat agenda, along with a list of all retreat participants and guests, must be included with the reimbursement form(s). This information serves as documentation of group expenditures.
3. Reimbursement for Retreats
Travel expenses, including the actual cost of transportation, lodging, meals, and miscellaneous expenses, incurred by employees while participating in a University of Alabama retreat are considered reimbursable employee travel expenses.
In-State Retreats
Travel expenses for in-state retreats will be reimbursed in the same manner as other in-state travel expenses if participants incur out-of-pocket expenses for food, lodging, and gratuities. If the University pays for some but not all lodging, the employee is entitled to per diem less amounts paid by the University.
Reimbursement for lodging, meals, and other services will not be made to retreat participants when all expenses and gratuities are paid directly by the retreat organizer to the vendors furnishing the accommodations, meals, and services. In such cases, participants are not eligible for per diem reimbursement.
When the organizer of an in-state retreat pays the vendors directly, the maximum amount allowed for lodging, meals, and gratuities can be determined by multiplying the number of participants by the $75.00 per diem allowance by the number of retreat days.
Out-of-State Retreats
Travel expenses for out-of-state retreats will be reimbursed in the same manner as other out-of-state travel expenses if participants incur out-of-pocket expenses.
4. Non-Travel Expenses
Non-travel expenses, such as class materials or conference room fees, are not subject to state per diem restrictions and may be claimed for reimbursement.
Travel
Policies: Spouse/Family Travel
1. Approval for Payment
As a general rule, the University does not reimburse employees for travel expenses incurred by their spouses or other family members. However, in some cases approval may be granted to pay these expenses from a foundation account.
2. Taxation
Per IRS regulations, the value of the travel provided for an employee's spouse is taxable income to the employee unless there is a valid business purpose for the spouse's travel. In order to document a business purpose, the following information must be provided:
- What business function did the spouse serve? (Agenda of activities, functions attended, duties performed, etc.)
- How did the University benefit by the spouse's presence on the trip?
The above information must be provided as part of the paperwork submitted for payment of the spouse's expenses.
If no business purpose is documented, the value of the spouse's travel is taxable income to the employee, subject to tax withholding. Withholding will be taken from the last paycheck in the month following the quarter in which the reimbursement was made.
The above guidelines for taxation apply not only to spouses, but also to any family member traveling with an employee.