Policies and Regulations

POLICY TITLE:

Accountable Plan for Employee Expenses

APPLIES TO: All divisions and departments and all employees submitting expenses for reimbursement

ADMINISTRATIVE AUTHORITY: Division of Finance and Administration Chief Financial Officer

APPROVED BY:

Kentucky State University Board of Regents

EFFECTIVE DATE:

August 8, 2025

NEXT REVIEW DATE: August 8, 2028

POLICY STATEMENT:

Kentucky State University (KSU) maintains an accountable plan in accordance with Internal Revenue Service (IRS) regulations. The purpose of this policy is to ensure that reimbursements and advances for legitimate employee business expenses are not included in an employee's taxable income. All expenses paid or reimbursed by KSU must meet the criteria outlined in this policy.

DEFINITIONS:

Accountable Plan

A plan for reimbursing employee business expenses that meets specific IRS criteria, allowing the reimbursements to be treated as non-taxable income to the employee.

Substantiation

Documentation that proves the amount, time, place, and business purpose of an expense, typically through itemized receipts and a clear explanation.