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Submitting Timely 2015 Employee Expense Reports

Business Services reminds employees about IRS requirements for timely submission of employee expense reports.

Minnesota State University, Mankato Media Relations Office Announcement, 4-14-2015

Date:       April 8, 2015

To:           Faculty & Staff that Travel or Incur Business Expenses

From:      Steve W. Smith, Comptroller
               Business Services

Subject:   Timely Submission of Employee Expense Reports


With the end of spring semester arriving, I want to remind all faculty and staff who may be traveling during the summer and incurring business expenses of the IRS requirements for the timely submission of employee expense reports. Several years ago the IRS clarified its requirements regarding the prompt reimbursement of employee business expenses. The main thing to remember is that employee business expenses must be submitted for reimbursement within 60 days after the expense is incurred or the trip ends. If a request for reimbursement is not submitted within 60 days, the reimbursement becomes taxable income to the employee. Consequently, federal, state, FICA and Medicare withholding taxes must be taken from the reimbursement and submitted to the IRS. The withholding taxes can add up to nearly 40% of your total reimbursement request.

In past years, we have noticed some employees have incurred travel and business expenses during the summer and have waited to submit their employee expense report until the start of the next fall semester. In a number of instances, the requests for reimbursements were not submitted within 60 days. In adhering to the IRS rules, employees that continue this practice will find themselves being taxed on their reimbursement. Please keep this in mind when you are traveling or incurring business expenses over the summer. It is always best to submit your employee expense reports as soon as your business trip is completed. Additionally, if an employee does not plan to return to Mankato after their trip is completed, they should submit their expense reports in the mail so that they can show compliance with the 60 day submission requirement.

If you have any questions regarding travel or business expense reimbursements, please contact the university’s travel claims clerk, Tami Galema-Liebl (389-5006) or view the University's travel website.

Thanks for your assistance in helping the university comply with IRS rules and avoid paying additional taxes.


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