To: All Faculty & All Academic Professionals & All Civil Service Staff
           <everybody@illinois.edu> 
    From: "Office of Business and Financial Services" <obfs@uillinois.edu>

Reply-To: obfs@uillinois.edu
 Subject: MASSMAIL - Reminder: 60-Day Policy for Reimbursements

This is a reminder that the requirement to submit employee reimbursements 
within a period of 60 days will take effect January 3, 2006. This means 
that if you need to submit a reimbursement request for expenses incurred, 
or travel that ended, ON OR BEFORE November 4, 2005 you must ensure the 
request is received by University Payables ON OR BEFORE January 3 or it 
will be considered taxable income to you. 

For example, employee J. Doe needs to claim a business travel 
reimbursement of $2,000 for a trip that ended on November 4, 2005, but 
waits until January 4, 2006 (61 calendar days) to submit the reimbursement 
request to University Payables. The reimbursement will be paid in full but 
reported to University Payroll as additional income to J. Doe. 
Consequently, tax withholding of approximately $600 (30% of $2,000) will 
be deducted from one of J. Doe's following payroll payments. If J. Doe's 
net earnings were typically $5,000, J. Doe would see a one-time reduction 
in his/her net pay to $4,400 ($5,000 minus $600).

The 60-day requirement is to comply with IRS regulations.  A business 
expense reimbursement to an employee may be considered taxable income to 
the employee if the request for the reimbursement is not received by 

University Payables within 60 calendar days of:
--the last date of travel (for travel reimbursements), or 
--the date the business expense was paid or incurred (for miscellaneous 
expense reimbursements) 

University Payables recognizes that there are special circumstances when 
it is impossible to submit a reimbursement request within the required 60 
days. In these cases, a justification for an exception must be approved by 
the unit head and submitted with the request to University Payables for 
final approval. 

Additional information on this policy is available in Section 15.1 of the 
OBFS Policies and Procedures manual, at: 
<http://www.obfs.uillinois.edu/manual/central_p/sec15-1.html

If you have questions please contact the Office of University Payables at 
217-333-0780 or OBFSUPAY@uillinois.edu.
This mailing approved by:
The Office of the President

-- 
This message sent via MASSMAIL.  < http://www.cites.illinois.edu/services/massmail/ >