1. 1 Overview of TABER Policy Overview of TABER Policy Presented By: John Harabedian Tax Director 9/1/2013

2. TAX DEPT WEBSITE http://uco.rutgers.edu/tax- services http://uco.rutgers.edu/tax- services http://uco.rutgers.edu/tax- services http://uco.rutgers.edu/tax- services Taxation Topics Taxation Topics Tax Exemption Letters and Certificates Tax Exemption Letters and Certificates Tax Links Tax Links Senior Tax Accountant - Anelia Dolan (732) 445-4212 andolan@rci.rutgers.edu Senior Tax Accountant - Anelia Dolan (732) 445-4212 andolan@rci.rutgers.edu andolan@rci.rutgers.edu 2

3. TAX EXEMPT STATUS Rutgers has dual status as a state instrumentality and also as a 501(c) (3) tax-exempt organization. Rutgers has dual status as a state instrumentality and also as a 501(c) (3) tax-exempt organization. In most cases, Rutgers is exempt from state sales tax. Exemption letters can be obtained, if needed, from the Tax Department. In most cases, Rutgers is exempt from state sales tax. Exemption letters can be obtained, if needed, from the Tax Department. Hotel Occupancy tax Hotel Occupancy tax 3

4. TABER & AUDIT HISTORY Original Internal Audit Report Original Internal Audit Report Board of Governor Mandate Board of Governor Mandate SCI Report SCI Report Other Audits Other Audits Responsibilities of approver Responsibilities of approver Rutgers Audit Process Rutgers Audit Process 4

5. 5 Purpose of Travel, Travel Incidentals, and Meal Expense Policy (40.4.1) To make travelers, approvers, deans, directors, and department heads aware of their respective roles and responsibilities when submitting and approving travel and business-related expenses. To make travelers, approvers, deans, directors, and department heads aware of their respective roles and responsibilities when submitting and approving travel and business-related expenses. More restrictive rules/policies may be specified by the deans, directors, and department heads of individual schools, divisions, departments, and/or by the funding source(s), such as external sponsors. More restrictive rules/policies may be specified by the deans, directors, and department heads of individual schools, divisions, departments, and/or by the funding source(s), such as external sponsors. To ensure that reimbursements made to university employees will not be considered taxable income under IRS regulations by maintaining an “accountable plan”. To ensure that reimbursements made to university employees will not be considered taxable income under IRS regulations by maintaining an “accountable plan”. A component of the Business/Accounting Certificate Program.

6. 6 Relocation/Moving Expenses Relocation/Moving Expenses Rutgers Policy and Procedures library Rutgers Policy and Procedures library See number 60.1.6 Non taxable employee moving expenses: Non taxable employee moving expenses: Actual moving of household goods, one way airline fare per person, or mileage @24 cents per mile in 2013, and hotel if traveling on ground. Actual moving of household goods, one way airline fare per person, or mileage @24 cents per mile in 2013, and hotel if traveling on ground. Taxable moving expenses Taxable moving expenses Reimbursement for any other moving expenses, including house hunting, meals, storage and temporary housing will be reported as gross wages through Payroll on a W-2 form. Reimbursement for any other moving expenses, including house hunting, meals, storage and temporary housing will be reported as gross wages through Payroll on a W-2 form. A component of the Business/Accounting Certificate Program. A component of the Business/Accounting Certificate Program.

7. 7 “ IRS-Accountable Plan” Must meet all 3 of the following conditions or the expenses may be taxable to the traveler: Must meet all 3 of the following conditions or the expenses may be taxable to the traveler: There must be a business connection. There must be a business connection. All business expenses must be substantiated (date, amount, place, and business expense being submitted to the employer within a reasonable time period). All business expenses must be substantiated (date, amount, place, and business expense being submitted to the employer within a reasonable time period). Employees are required to return all advance amounts in excess of substantiated expenses. Employees are required to return all advance amounts in excess of substantiated expenses. Unallowed expenses must be deducted at the end of the TABER in the “Less Amount Disallowed” field or simply not recorded in a TABER amount. Unallowed expenses must be deducted at the end of the TABER in the “Less Amount Disallowed” field or simply not recorded in a TABER amount. A component of the Business/Accounting Certificate Program. A component of the Business/Accounting Certificate Program.

8. RU TRAVEL.RUTGERS.EDU Rutgers Policy 40.4.1 Rutgers Policy 40.4.1 TABER form TABER form Per diem meal rates-domestic & foreign & IRS rates Per diem meal rates-domestic & foreign & IRS rates Oanda currency conversion-required for all currency uses Oanda currency conversion-required for all currency uses Mapquest Mapquest RU Travel agencies RU Travel agencies Lost receipt form Lost receipt form 8

9. 9 Travel And Business Expense Reports (TABERS) Travel And Business Expense Reports (TABERS) Used for requesting reimbursement for employees out-of-pocket expenses incurred while traveling on University business. Used for requesting reimbursement for employees out-of-pocket expenses incurred while traveling on University business. Also used to reimburse other University business related expenses such as business meals. Also used to reimburse other University business related expenses such as business meals. Can be used to purchase small incidental items under $500 according to the purchasing guidelines. Can be used to purchase small incidental items under $500 according to the purchasing guidelines. A component of the Business/Accounting Certificate Program A component of the Business/Accounting Certificate Program

10. 10 Travel Advances Travel Advances Generally requested for hotel deposit, transportation, meals & incidentals. Generally requested for hotel deposit, transportation, meals & incidentals. Must use the Travel Advance Form (TAF) available on the RIAS website Must use the Travel Advance Form (TAF) available on the RIAS website Requests for greater than $100 per day of travel must have a justification letter attached request. Requests for greater than $100 per day of travel must have a justification letter attached request. Will not be issued more than 2 weeks prior to the traveler’s departure date. Will not be issued more than 2 weeks prior to the traveler’s departure date. Exception – Transportation expenses can be distributed up to 90 days in advance of departure date. Exception – Transportation expenses can be distributed up to 90 days in advance of departure date. A component of the Business/Accounting Certificate Program A component of the Business/Accounting Certificate Program

11. 11 Travel Advances (cont’d) Travel Advances (cont’d) Settled by submitting a Travel And Business Expense Report (TABER) with appropriate receipts within 60 days of the traveler’s return to work. Settled by submitting a Travel And Business Expense Report (TABER) with appropriate receipts within 60 days of the traveler’s return to work. Must be settled before subsequent advances are issued. Must be settled before subsequent advances are issued. Send requests to Division of University Accounting, Room 300, Administrative Services Building, Busch Campus, attn: Lisa Robinson. Questions (x5-3354). Send requests to Division of University Accounting, Room 300, Administrative Services Building, Busch Campus, attn: Lisa Robinson. Questions (x5-3354). A component of the Business/Accounting Certificate Program A component of the Business/Accounting Certificate Program

12. 12 Expense Report Requirements Expense Report Requirements Detail of the business reason or purpose for the expenditure; Clear explanations. Detail of the business reason or purpose for the expenditure; Clear explanations. Itemization and all original receipts for every expense over $50,( except meals.) Itemization and all original receipts for every expense over $50,( except meals.) Original signature of the individual traveler requesting reimbursement, and Original signature of the individual traveler requesting reimbursement, and Approval of the TABER by the traveler’s supervisor or the supervisor’s designee who does not report to the traveler. Approval of the TABER by the traveler’s supervisor or the supervisor’s designee who does not report to the traveler. Traveler must submit the expense report within 60 days. Traveler must submit the expense report within 60 days. TABERs submitted beyond one year after the date(s) of travel will not be reimbursed TABERs submitted beyond one year after the date(s) of travel will not be reimbursed A component of the Business/Accounting Certificate Program A component of the Business/Accounting Certificate Program

13. 13 Reimbursable Travel Expenses Commercial Air Commercial Air University will reimburse only for coach class tickets aboard a regularly scheduled commercial carrier. University will reimburse only for coach class tickets aboard a regularly scheduled commercial carrier. For reimbursement of airline ticket purchases, proof of payment for the airline ticket. Boarding passes when possible are to be submitted with the TABER. For reimbursement of airline ticket purchases, proof of payment for the airline ticket. Boarding passes when possible are to be submitted with the TABER. Commercial Bus/Rail Fares Commercial Bus/Rail Fares Reimbursement will be the reasonable actual cost. The ticket stub or a detailed receipt must show the fare. Reimbursement will be the reasonable actual cost. The ticket stub or a detailed receipt must show the fare. A component of the Business/Accounting Certificate Program. A component of the Business/Accounting Certificate Program.

14. 14 Reimbursable Travel Expenses (cont’d) Lodging Reservations Lodging Reservations The trip must be more than 100 miles one-way. Exceptions must be approved, explained and included in the reimbursement request and attached to the TABER. The trip must be more than 100 miles one-way. Exceptions must be approved, explained and included in the reimbursement request and attached to the TABER. The original receipted hotel bill must substantiate the expenses and must specify rate, date(s) of stay The original receipted hotel bill must substantiate the expenses and must specify rate, date(s) of stay Proof of Hotel payment must be attached to TABER. Proof of Hotel payment must be attached to TABER. A component of the business/Accounting Certificate Program.

15. 15 Reimbursable Travel Expenses (cont’d) Car Rental Car Rental Must be a business justification or when there is no other means of transportation. Must be a business justification or when there is no other means of transportation. Reimbursement only to the traveler who signed the rental agreement Reimbursement only to the traveler who signed the rental agreement Original receipts for car rentals and the rental contract must be attached to the TABER. Original receipts for car rentals and the rental contract must be attached to the TABER. Should obtain Collision Damage Waiver Should obtain Collision Damage Waiver  Ground Transportation Includes from the traveler’s home, or from their work site to the airport, bus, or train station after 7/1/13 @56.5 cents. Includes from the traveler’s home, or from their work site to the airport, bus, or train station after 7/1/13 @56.5 cents. A Component of the Business/Accounting/Certificate Program. A Component of the Business/Accounting/Certificate Program.

16. 16 Reimbursable Travel Expenses (cont’d) Employee Meal Expenses (3 options) Employee Meal Expenses (3 options) Option 1) Reimbursement for actual expenses up to $60 per day. Option 1) Reimbursement for actual expenses up to $60 per day. Submit itemized original receipts with proof of payment. Provide details and purpose of meeting. Submit itemized original receipts with proof of payment. Provide details and purpose of meeting. Do not seek reimbursement for a meal that is included in travel, such as at a conference. Conference agenda is required to substantiate meals provided at conference. Do not seek reimbursement for a meal that is included in travel, such as at a conference. Conference agenda is required to substantiate meals provided at conference. Individual meal expense must be a reasonable portion of the $60/day option. Individual meal expense must be a reasonable portion of the $60/day option. A component of the Business/Accounting Certificate Program. A component of the Business/Accounting Certificate Program.

17. 17 Reimbursable Travel Expenses (cont’d) Employee Meal Expenses: Option 2) Meal allowance – no receipts: $30 per day reimbursement or $50 per day from major city chart on travel web site Must be prorated for any day meals are provided at a conference. Must be prorated for any day meals are provided at a conference. This option must be used for entire trip. This option must be used for entire trip. Prorated daily allowance for departure and arrival times on travel dates Prorated daily allowance for departure and arrival times on travel dates A component of the Business/Accounting Certificate Program.

18. 18 Reimbursable Travel Expenses (cont’d) Employee Meal Expenses : Option 3) IRS federal per diem rate from travel web site This option must be used for entire trip. This option must be used for entire trip. Must be prorated for any day meals are provided at a conference. Must be prorated for any day meals are provided at a conference. Prorated daily allowance for departure and arrival times on travel dates Prorated daily allowance for departure and arrival times on travel dates A component of the Business/Accounting Certificate Program.

19. 19 Reimbursable Travel Expenses (cont’d) Employee Meal Expenses: Employee Meal Expenses: % of meal per diem rate when a meal is provided at conference: % of meal per diem rate when a meal is provided at conference: breakfast 20% breakfast 20% lunch 20% lunch 20% dinner 60% dinner 60% A component of the Business/Accounting Certificate Program.

20. 20 Reimbursable Travel Expenses (cont’d) Employee Meal Expenses: Employee Meal Expenses: % of meal per diem for departure date % of meal per diem for departure date 12:01 am to 7:00am 100% 12:01 am to 7:00am 100% 7:01am to 1:00pm 80% 7:01am to 1:00pm 80% 1:01pm to 7:00pm 60% 1:01pm to 7:00pm 60% 7:01pm to 12:pm 0% 7:01pm to 12:pm 0% A component of the Business/Accounting Certificate Program.

21. 21 Reimbursable Travel Expenses (cont’d) Employee Meal Expenses: Employee Meal Expenses: % of meal per diem for arrival or return date % of meal per diem for arrival or return date 12:01 am to 7:00am 0% 12:01 am to 7:00am 0% 7:01am to 1:00pm 20% 7:01am to 1:00pm 20% 1:01pm to 7:00pm 40% 1:01pm to 7:00pm 40% 7:01pm to 12:pm 100% 7:01pm to 12:pm 100% A component of the Business/Accounting Certificate Program.

22. 22 Business Expenses Business Meals for Meetings Business Meals for Meetings Receipts must be original, itemized and include the provider’s name and date, the name(s) of any other person included on the bill, and purpose of the meeting. Receipts must be original, itemized and include the provider’s name and date, the name(s) of any other person included on the bill, and purpose of the meeting. Receipt must indicate that bill was paid. Credit card receipts alone are not acceptable. Receipt must indicate that bill was paid. Credit card receipts alone are not acceptable. To determine if business meal expense is appropriate, consult with your supervisor who should use professional judgment in determining whether: To determine if business meal expense is appropriate, consult with your supervisor who should use professional judgment in determining whether: Topic of discussion (meeting) warrants use of University funds for meal expense. Topic of discussion (meeting) warrants use of University funds for meal expense. Benefit derived from incurring expense is most effective, efficient and productive way to use university resources. Benefit derived from incurring expense is most effective, efficient and productive way to use university resources. Fund are available. Fund are available. A component of the Business/Accounting Certificate Program. A component of the Business/Accounting Certificate Program.

23. Business Expenses UNDER $500 small goods and services for emergency purposes UNDER $500 small goods and services for emergency purposes All violations must be sent to purchasing dept for one time approval if appropriate All violations must be sent to purchasing dept for one time approval if appropriate Use purchasing dept for goods and services over $500 Use purchasing dept for goods and services over $500 23

24. 24 Examples of Noncompliance Examples of Noncompliance Missing the reason or business purpose for the reimbursement. Missing the reason or business purpose for the reimbursement. Approving of TABER by subordinates. Approving of TABER by subordinates. Failing to provide receipts for all expenses Failing to provide receipts for all expenses Expenses that are not Rutgers business-related. Expenses that are not Rutgers business-related. Charging alcohol on state and grant accounts. Charging alcohol on state and grant accounts. Meals included in the cost of conference/meeting fees Meals included in the cost of conference/meeting fees Charging a higher per mileage rate for use of personal car than allowed by the University. Charging a higher per mileage rate for use of personal car than allowed by the University. Seeking reimbursement for mileage and gas expense concurrently. Seeking reimbursement for mileage and gas expense concurrently. Seeking reimbursement for a spouse or family member’s travel costs Seeking reimbursement for a spouse or family member’s travel costs A component of the Business/Accounting certificate program. A component of the Business/Accounting certificate program.

25. 25 Subcode Review Subcode Review Commonly Used: Commonly Used: 3490 Travel Advances 3490 Travel Advances 3500 Travel/Meals 3500 Travel/Meals 3510 Travel-Recruitment 3510 Travel-Recruitment 3520 Travel-Domestic-DGCA 3520 Travel-Domestic-DGCA 3530 Travel-Foreign-DGCA 3530 Travel-Foreign-DGCA 3540 Travel-Consult-DGCA 3540 Travel-Consult-DGCA 3550 Employee Moving Exp 3550 Employee Moving Exp 3560 Training 3560 Training 3590 Registration/Conf. Fees 3590 Registration/Conf. Fees For a full listing of expense type sub codes see the SC screen on OFIS. A component of the Business/Accounting Certificate Program A component of the Business/Accounting Certificate Program

26. 26 Expense Report References Expense Report References Regulations and Procedural Manual Regulations and Procedural Manual 40.4.1 Travel, Travel Incidentals and Meal Expense Policy 40.4.1 Travel, Travel Incidentals and Meal Expense Policy 60.1.6 Policies and Procedures Concerning Employee Relocation 60.1.6 Policies and Procedures Concerning Employee Relocation Travel Website rutravel.rutgers.edu See Responsibilities. Travel Website rutravel.rutgers.edu See Responsibilities.rutravel.rutgers.edu Call Dept. Business manager Call Dept. Business manager Tax Dept-Terri Shields, Taber compliance 445-2798 Tax Dept-Terri Shields, Taber compliance 445-2798 A component of the Business/Accounting Certificate Program A component of the Business/Accounting Certificate Program

27. 27 Questions/Comments/ Thoughts from Audience??? Questions/Comments/ Thoughts from Audience???