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 - Amnesty Period for 60-Day Travel Policy 

The Office of Business and Financial Services announced a new policy in 
February 2005 regarding timely submission of requests for reimbursement 
of business travel and miscellaneous expenditures.  This policy was 
written to comply with Internal Revenue Service regulations regarding 
Accountable Plan rules.  In accordance with the policy, reimbursement 
vouchers submitted more than 60 days after the last date of travel or 
expenditure occurrence are to be reported as taxable income and 
appropriate taxes withheld from the employee's gross pay. 

The policy was implemented in January 2006; however, in an effort to 
provide departments with a final opportunity to process outstanding 
reimbursement vouchers, the Office of Business and Financial Services has 
established an amnesty period for the period January 1, 2006 through June 
30, 2006.  Reimbursement vouchers for business travel and/or 
miscellaneous expenditures that occurred prior to May 1, 2006 and 
received in University Payables before 4:00 p.m. on June 30, 2006 will be 
processed without being reported as taxable income. 

Effective July 1, 2006, reimbursement vouchers submitted more than 60 
days after the completion of travel or the expenditure occurrence will be 
reported as taxable income unless a Reasonable Justification form has 
been submitted and approved by University Payables.  The reimbursed 
amounts will be subject to federal withholding of 25%, state withholding 
of 3% and, if applicable, Medicare withholding of 1.45%.  This 
withholding will reduce the amount of the employee's net income in a 
subsequent pay period.

If you have questions regarding your paycheck or the impact on it, please 
contact University Payroll at 866-476-3586 or 217-265-6363 or via e-mail 
at payinq@uillinois.edu.  If you have questions regarding employee 
reimbursements please contact University Payables at 217-333-6583.


Laurie Pitner
Executive Director of University PayrollThis mailing approved by:
The Office of the President

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