University Procedure
Title
University of North Carolina at Chapel Hill Procedure for Accountable Plan - Reimbursements
Introduction
Purpose
As an institution of higher education, the University of North Carolina at Chapel Hill ("UNC-Chapel Hill" or "University") follows the Internal Revenue Service’s (IRS) rules for advances, travel and business expenditures under Treasury Regulation §1.62-2 as discussed under Code §§62(c) and 274 and IRS Publication 463.
Furthermore, the University follows the requirements listed in NC General Statute §138-6. Travel allowances of State officers and employees and in consideration of the North Carolina Office of State Budget and Management (OSBM) guidelines and regulations.
An Accountable Plan allows an employer to reimburse employees on a non-taxable basis when certain requirements are met. These regulations relate to reimbursing employees for business expenses, where reimbursement is not counted as income. This reimbursement process is referred to as an “Accountable Plan”. This Procedure explains the process for seeking Accountable Plan Reimbursements.
Scope
This procedure applies to all employees (faculty, staff, student employees) seeking reimbursement or travel advance for authorized University business expenses, regardless of funding source or GL Business Unit.
Procedure
Expense Reimbursement Documentation and Supporting Information
To facilitate timely processing of expense reimbursements and maintain compliance with IRS Accountability Plan requirements, please provide the following elements on all expense reimbursement requests within 60 days from when the expenses are paid or incurred.
- Substantiation of business expenses: Completion of all required fields in appropriate system or transaction.
- Itemized receipts should be original and show the name of the payee, the amount of the charge, the transaction date, and method of payment. If original receipts are not available, a Missing Receipt Affidavit must be completed.
- Official meeting agendas may be used to document the University business purpose.
REMINDER: Reimbursements submitted 180 days after expenses are paid or incurred will not be processed. Please submit all requests timely.
Refund payments
Refund payments are not business expense reimbursements under Code §§ 62(c) and 274. Thus, this procedure does not pertain to refund payments.
Travel Advances
Please refer to 1501 – University of North Carolina at Chapel Hill Policy on Business Travel for details on travel advances.
Travel Advances may be issued no more than 30 days prior to the expenses being incurred and must be reasonably calculated not to exceed the amount of anticipated expenditures.
Travel Advances must be reconciled within 60 days of the last day of travel.
Taxable Reporting
If the above conditions are not met, the reimbursement or travel advance may be reported as additional taxable income on the employee’s next available paycheck and included on Form W-2 as taxable income. The earnings code on the employee’s paystub will indicate which area reported the taxable event. So when questions arise please reach out to the following:
- Taxable Concur Reimbursement – travel_team@unc.edu
- Taxable Web Travel – travel_team@unc.edu
- Taxable Voucher Reimbursement – accountspayable@unc.edu
Taxes may also be deducted from the employee’s paycheck per applicable regulations and information on file which can also result in FICA being charged to department funding sources.
Definitions
Related Requirements
University Policies, Standards, and Procedures
Contact Information
Accountable Plan
Contact: Controller
Telephone: 919-962-1370
Email: controller@unc.edu
Concur and Web Travel Advances/Reimbursements
Contact: Travel Services
Telephone: 919-962-0120
Email: travel_team@unc.edu
Voucher Reimbursements
Contact: Accounts Payable
Telephone: 919-962-0213
Email: accountspayable@unc.edu
Payroll
Contact: Payroll Services
Telephone: 919-962-0046
Email: payroll@unc.edu