Reminder: Late Expense Reports Will be Taxed Beginning July 1, 2018

June is the last month of the grace period for employees to submit their late expense reports without being taxed.   To comply with IRS regulations, beginning on July 1, employee expense reports submitted to an Approver more than 60 days after the trip or last purchase date will be reported as taxable income for the employee being reimbursed and subject to applicable payroll taxes. If you missed seeing earlier communications about this change, refer to the Newsletter article Late Expense Reports Will Result in Taxable Income Beginning on July 1, 2018.

Timely reporting and submission of expense reports is the responsibility of the employee being reimbursed regardless of whether the employee self-submits or has designated a delegate for expense reporting.  Employers and their delegates should complete the new "End of Trip/Last Purchase Date" field in MyExpense.  This field was added in April to support accurate identification of late expense reports.  Approvers should confirm that the date entered is accurate and matches submitted documentation before approving expense reports.  

Accounts Payable has been notifying employees who submit a late expense report and their final approvers about this change.  At this time students, affiliates, guest travelers, and other non-employee expense reports are not subject to these IRS guidelines.

Please distribute this information to your employees who are reimbursed for expenses and their Preparers and Approvers. Contact the Controller’s Office Solution Center if you have any questions about this change.