Employee Reimbursements
Employees may be reimbursed for properly substantiated business expenses.
It is recommended that employees do not use personal funds and seek reimbursement for any payment $50.01 and above that may be tax reportable.
If there was an unavoidable circumstance in which an employee had to make a purchase, and you need to reimburse an employee for payment they made for services including software licenses and subscriptions; shipping; publishing; printing; permission or royalty payments; equipment or IT repairs; gift card, award or prize payments; or other tax reportable payments, you will need to make sure that both the employee being reimbursed and the vendor that the employee purchased services from are set up in Banner.
For example: an employee is reimbursed for $300 of repair work on his work laptop computer with personal funds. Employee paid with personal funds because the repair was needed over the weekend. In this instance the UO may be obligated to report the payment to the IRS on a Form 1099. The Banner Check Vendor function must be used to allow for tax reporting. Contact Accounts Payable for assistance at 6-3143.
For small amounts (de Minimis - $50.00 or less) such as reimbursing an employee for de Minimis services such as photocopies while traveling or for research subject payments, or a single Fed Ex shipping charge, use account code 28994 Reimb Supplies & Services Expenses to Employees. Otherwise the Banner Check Vendor Function must be used when reimbursing an employee.
Documentation standards for employee reimbursements.
Other items to be aware of when reimbursing employees:
- Software licenses and software subscriptions: If the software has NO annual renewal or end date. Use account code 20202. However, if the software has a license or subscription that allows use for limited duration (one year at a time) or is custom software that includes providing a services such as cloud services or domain name registration for limited duration, please use the Banner check vendor function if over $50 and code to 24203 since the service is tax reportable. If $50 or less then code to 28994. You must include the software name/title in FOATEXT.
- Subscriptions: If the subscription is a paper publication. Use account code 20108. However, if the subscription is for electronic resources and membership fees to receive access to electronic resources and publications for limited duration (one year at a time), please use the Banner check vendor function if over $50 and code to 20109 since the service is tax reportable. If $50 or less then code to 28994. You must include the subscription name/title in FOATEXT.
- Hosting Groups and Guests: (Reimbursement must show that at least one non-employee was present to be considered hosting). Use appropriate account codes 28612 or 28613 for reimbursing for food purchased while hosting. NOTE: If catering or food services are provided please use Banner check vendor function and code to 24599 since catering it is tax reportable. Do not use 28994.
- Equipment: If reimbursing an employee for equipment used for UO business, the equipment belongs to the UO. See Equipment Policy. Please also see the Property Check Out and Property Receipt Form under BA Forms to complete appropriate forms related to equipment bought or paid for by the UO but used by employees for UO business purposes.
- Equipment Warranties: In general its best for departments to purchase minor equipment such as computers, fax machines, printers, and software directly from the vendor rather than reimbursing an employee. This is for warranty purposes.
- Payment Time Limit: There is a two-year limitation for presentation of claims (including employee reimbursements).
- Registration fees paid for by an employee may not be reimbursed to an employee until after the event, even if the event is virtual. (It would be best to arrange to have registration fees direct billed to the department).