An IRS accountable plan is used to reimburse its employees for
non-travel expenses incurred in the course of College business. By
using this method, the College meets the IRS definition of an accountable
plan
and therefore, reimbursements do not have to be reported as income
to the employee.
Under an accountable plan, reimbursable expenses need
to
have a statement substantiating the amount and business purpose
of expenses within a reasonable time (not to exceed 60 days) after
the
expenses are
incurred. Reimbursement may not be made to employees
for payments made to individuals. These payments must be paid directly to
the individual and follow the policy on Paying
Individual for Services.
All expense reimbursements must be approved by an authorized individual
and include original receipts for all expenditures. A detail
itemization of charges is required. If the expenses are to be charged
to a grant or contract provided by a sponsor external to the College,
the reimbursement must also be approved the Associate Controller of
Sponsored Research.
The College is exempt from Massachusetts sales tax. To take advantage
of this status, payments must be made directly to the supplier from
the supplier's invoice. The College will not reimburse
individuals for sales tax in excess of $5.00. Click here for
a copy of our Certificate of Exemption from Sales Tax.
Employees should complete a Check Request
Form with original
receipts for reimbursement. The approved Check Request Form should
be forwarded as follows based upon the amount of the request:
1. For amounts under $50:
- Bring the completed Check Request Form to the Cashier’s Window at the Controller’s Office to receive an immediate cash
reimbursement.
- Please
note that there is a limit of $50 per day per person.
- An ID is required for all reimbursements.
2. For amounts over $50:
- Forward the completed Check Request Form to the attention of
Accounts Payable in the Controller’s Office.
- The form will be processed and paid within 7-10 business days.
With the increase of online purchasing, there may be
instances where an original receipt is not available. When this occurs,
acceptable
forms of documentation would be an itemization of the charges and
proof of
payment. Itemization of charges includes an online printout. Proof
of payment includes credit card statements, front and back copy
of check, non-itemized
cash receipt or online order
confirmation indicating
credit card payment.
For reimbursement of meals not incurred during travel,
include the business purpose of the meal charges on the
Check Request form and attach a detailed itemization if
available. If the restaurant does not provide a copy of
an itemized
bill, you may attach the credit card charge receipt and state the dollar
amount for alcohol. All alcohol purchases should be reported on Account 7848 regardless of the fund that is being charged. If no alcohol was included in the charge, simply
state no alcohol on the receipt. In addition, if the charge covers
meals for others, please specify the names
of the guest(s).
