For an expense reimbursement or advance to be considered non-taxable under this accountable plan, all of the following criteria must be met:
Business Connection: The expense must be reasonable, necessary, and directly related to the business purposes of KSU.
Timely Substantiation: The employee must adequately account for and substantiate the expense to KSU within 60 days of the expense being incurred.
Return of Excess: The employee must return any reimbursement or advance that exceeds the substantiated expenses within 120 days of payment.
Any amount paid to an employee that does not meet all three of the requirements above will be treated as paid under a "non-accountable plan." Such amounts will be reported as taxable income to the employee in the next available payroll cycle and will be subject to all applicable tax withholdings.
All expenses submitted for reimbursement must also comply with other relevant KSU policies, including but not limited to, the Travel and Entertainment Expenses Policy and the Purchasing Policy.
KSU Purchasing Policy
KSU Entertainment Expense Policy
IRS Publication 5137 (Fringe Benefit Guide)
IRS Publication 463 (Travel, Gift, and Car Expenses)
| Subject | Office | Telephone | E-mail |
|---|
| Policy Questions | CFO/Vice President of Fin. & Admin. | (502) 597-6429 | Melissa.Hicks@kysu.edu |
| Revision Type | Date of Issuance/Revision | Drafter(s)/Editor(s) |
|---|
| Issued (New Policy) | August 2024 | YPTC |
| Substantive Revisions | June 2025 | Zach Atwell |