The policy will be implemented only through the Expense Report module, affecting employees and student employees. Students, candidates, and visitors reimbursed through the Miscellaneous Payment module are not affected at this time.
Effective July 06, 2026, UW will adopt Rule 2 of the IRS Accountable Plan (Also referenced in SAAM 10.80.70.b). Under this policy, expenses must be substantiated within a reasonable time period. Failure to do so will result in the expense being treated as taxable income, and the reimbursement will be processed through payroll to ensure the applicable payroll withholding taxes are applied from the individual's next semi-monthly earnings.
For purposes of this policy, as stated in the Safe Harbor established in IRS Section 1.62-2(g)(2)(i), a “reasonable period” will be defined as 60 days.
- From the date the trip ends1 for travel expenses
- From the date of purchase for non-travel expenses
Expenses substantiated on an expense report within this time period will satisfy the reasonable time period requirement and will not be considered income.
Exception documentation must be attached to the delayed expense report.
Allowable exceptions to this policy include:
- The employee was on an approved extended leave of absence.
- Documentation requirement: Department confirmation of extended leave of absence
- The employee was on business travel status for over 60 days.
- Documentation requirement: Trip pre-approval, documentation substantiating continuous 60-day travel
- The delayed submission of the expense report was caused by the Shared Environment and/or department personnel other than the Payee.
- Documentation requirement: SE Director (or SE highest reporting authority) explanation and approval
1Date the trip ends: Last day of the trip, including personal time
[Coming Soon: Procedure - JOB AID]
- The reimbursement request had one or more send-backs. To which submission date does the policy apply?
- Are there additional steps to take after submitting the expense report for processing the payment as taxable income?
- Is there an exception to the 60-day policy if there are payment reissues?
- The funding source has a delay in receiving funds, and the traveler has already purchased the travel expenses. What exception is applicable?
- Is there a final cutoff date for any reimbursement submissions?
- I prepaid for Continuing Education and/or Accreditation Fees, how do I request reimbursement?