Travel Operations
1600 Holloway Ave
ADM358
San Francisco, CA 94132
News Bulletins
- New Bulletins -
Contacts
| Travel Coordinator | Phone | Fax | |
|---|---|---|---|
| Tapati Shah | 338-2629 | 841-5037 | tshah@sfsu.edu |
| Form Description | Format | Date |
|---|---|---|
| Approval of Travel Expense Advance | 07/00 | |
| Authorization to Use Privately Owned Vehicles on State Business -STD261 | 05/01 | |
| Hotel/Motel Transient Occupancy Tax Waiver | 03/01 | |
| American Express Government Card Application | 05/03 | |
| Combined Travel Expense Claim & Itemized list of Actual Expenses | ||
| EXCEL Excel01/07 | 01/07 | |
| EXCEL | 01/07 | |
| Petty Cash Reimbursement Request (Petty Cash Fund Guidelines) | 04/06 | |
| html | ||
| Academic Resources Faculty Recruitment | html |
Meal Reimbursements
PAYROLL LETTER # 98-038
MEAL REIMBURSEMENTS FOR TRAVEL LESS THAN 24 HOURS
This letter provides revised tax and reporting instructions affecting meal reimbursements for travel away from home for less than 24 hours wherein neither an overnight stay nor substantial sleep/rest are required.
GENERAL INFORMATION
Internal Revenue Code (IRC) 162(a) requires that meal expenses, reimbursed by an employer to an employee, for travel away from home for less than 24 hours wherein neither an overnight stay nor substantial sleep/rest are required, represent taxable and reportable income. Meal reimbursements, even when paid under an employer's accountable reimbursement plan provisions, do no qualify as "business expense" under the IRC, Sections 162(a) and 62 (c).
Effective January 1, 1999, all meal reimbursements for daily travel of less than 24 hours, except as noted below, are taxable and reportable income. The reimbursements are subject to Federal and State Income and applicable Social Security/Medicare taxes.
DETERMINATION OF TAXABILITY
Taxable and Reportable Travel Related Meal Reimbursements
All meal reimbursements for travel for less than 24 hours are taxable and reportable unless:
- Travel requires an overnight stay (lodging) OR
- Travel satisfies the three Sleep/Rest Rule provisions required by IRS Announcement 90-127:
- the trip lasts substantially longer than an ordinary day's work AND
- the employee cannot reasonably be expected to make the trip withou being released from duty for sufficient time to obtain substantial sleep/rest. NOTE: the IRS has ruled that brief rest periods, few hours or less, do not satisfy the definition of substantial sleep/rest. AND
- the release from duty is with the employer's tacit or expressed acquiescence or is required by governmental regulations.
The Sleep/Rest Rule generally applies to employment occupations, by the nature of the work performed (truck drivers, airline pilots and other transportation jobs entailing the safe operation of equipment), which require limited work shifts, followed by a substantial sleep/rest period, before an employee is allowed to begin a new work shift or continue a trip.
EXAMPLE 1 (TAXABLE): An employee drives from Sacramento to San Francisco leaving at 5:00 a.m. and returning at 6:00 p.m. The employee is entitled, under the employer's (accountable or non-accountable) reimbursement plan, to $9.00 for breakfast. Since the employee did not require an overnight stay nor were the Sleep/Rest Rule provisions satisfied, the $9.00 is taxable and reportable income.
EXAMPLE 2 (TAXABLE): An employee flies from Los Angeles to San Francisco, leaving at noon and returning at 10:00 p.m. The employee is entitled, under the employer's (accountable or non-accountable) reimbursement plan to $20.00 for dinner. since the employee did not require an overnight stay nor were the Sleep/Rest Rule provisions satisfied, the $20.00 is taxable and reportable income.
Non-Taxable and Non-reportable Travel Related Meal Reimbursements
Meal reimbursements, for travel for less than 24 hours when paid under accountable plan provisions are non-taxable and non-reportable when:
- travel requires an overnight stay OR
- travel satisfies the three Sleep/Rest Rule provisions noted above
EXAMPLE 3 (NON-TAXABLE): An employee flies from San Diego to Sacramento leaving at 4:00 p.m., spending the night at a hotel and returning to San Diego the next day at 10:30 am. The employee is entitled, under the employer's accountable reimbursement plan, to claim $20.00 for dinner and $9.00 for breakfast. although the trip was less than 24 hours, because of an overnight stay was required, the dinner and breakfast reimbursement are non-taxable, non-reportable income.
EXAMPLE 4 (NON-TAXABLE): An employee, a truck driver, is scheduled for a round trip run between Los Angeles and Sacramento. The employee leaves Los Angeles at 4:00 am. and returns to Los Angeles at 11:00 p.m. the employer requires the employee to secure 4 hours of rest in Sacramento before beginning the return portion of the trip. The employee is entitled, under the employer's accountable reimbursement plan to claim $9.00 for breakfast and $20.00 for dinner. Because the Sleep/Rest Rule provisions were satisfied, thebreakfast and dinner reimbursements are non-taxable, non-reportable income.
Frequently Asked Questions
To assist you in the Travel Process, here are some FAQ's that may answer some of your questions. If your questions are not covered here, please call the Travel Coordinator, Tapati Shah, at 415-338-2629. Thank you.
- Q: Where do I pick-up my advance?
- A: You can pick up your travel advance at the University Disbursement Office located in the Administration building ADM 358. Make sure that the PICK-UP advance box is filled out on the ATEA form so that the advance will be there for you to pick-up. Please provide a telephone number, so that the disbursement office can notify you when your check is ready for pickup.
- Q: How long does it take to process an advance?
- A: As soon as it's received in Travel ADM 358C in correct and proper format (filled out correctly; ie., the account to which travel would be charged to and traveler's social security number and request is within 30 days of travel). Depending on the volume of requests: about 3-5 days turn around time.
- Q: What do I have to do to clear a travel advance I received? Can I just submit receipts?
- A: You will need to fill out and complete a Travel Expense Claim (STD262) form, attach all applicable receipts and obtain the appropriate authorization/signature on your TEC. Mail or deliver the completed TEC form to the Travel Coordinator as soon after your trip as possible (but no later than 30 days after the trip).
- Q: If my airline ticket was charged to the Business Travel Advance (BTA), do I need to claim this amount on my Travel Expense Claim?
- A: No. The only time a claim is filed is when the traveler pays the airline fee and department is willing to reimburse, therefore a receipt showing the method of payment, type of charge or check, and zero balance must be reflected on receipt.
- Q: What's a BTA? Or where do I get one or find out if we have one?
- A: The BTA is short for Business Travel Account, it's a special account set up for the purchase of airline tickets. Most Colleges and Departments have a BTA. Your department will designate or decide whether you are able to utilize it for your airline expense. If you represent a College or Department and you have questions, about how to establish a BTA, please contact the Travel Coordinator at x82629.
- Q: What are Subsistence items?
- A: Subsistence items are expenses you incurred in your trip. It consists of lodging (room and tax) and Meals (breakfast, lunch, dinner). Only $41 can be claimed for the first 24 hours. Thereafter, $46 for the full 24hr. period that follows. Any meals covered by conferences should not be claimed.
- Q: What are the per diem allowances?
- A: The per diem allowances for each complete 24-hour period are as follows:
- Breakfast - $9.00
- Lunch - $12.00
- Dinner - $20.00
- Incidental - $5.00
- Q: When can breakfast be claimed?
- A: For a trip with a duration of 24 hours or less, breakfast can be claimed if the traveler leaves prior to 7:00 a.m. and travels 26 miles or more from their primary workplace.
- Q: Can I claim lunch for a one-day trip?
- A: For a trip with a duration of 24 hours or less, lunch can not be claimed.
- Q: What if I lost my required receipts or was never given one?
- A: Receipts are required to file a complete TEC. If you do not have a particular receipt, you should contact the business where the expenses were incurred and ask for a copy of their records. If the business is unable to provide you with a duplicate receipt, you may substitute a copy (front and back) of your cancelled check, bank or credit card statement on an exception basis. However, you must furnish original receipts when claiming reimbursements for lodging, transportation, training expenses, professional dues, licenses and fees, and the purchase of airline tickets.
- Q: What is the mileage reimbursement rate?
- A: Effective January 17, 2001, the maximum standard mileage reimbursement rate is 34.5 cents/mile.
- Q: How long does it takes to process claims?
- A: We process claims on a daily basis. If you have a questions regarding the status of your personal TEC form, please call the Travel Coordinator at 82629.
- Q: When should I turn in my claim?
- A: As soon as possible after the trip or within 30 days after completion of Travel.
- Q: What happens if the advance/claim is incorrectly filled out?
- A: An attempt to contact the department or traveler will be made by the Travel Coordinator, and the paperwork may be sent back to the individual or the department.
- Q: What happens if I do not submit a claim, but received an advance?
- A: A Notice of Delinquent Travel Claim is sent to you. You will be ineligible to receive another Travel Advance until the delinquent travel claim has been submitted, audited and processed by the Travel Coordinator. If your completed/approved claim is not received by the deadline established in your delinquent notice, the advanced amount will be taken out of your salary. Both you and your department approver will be notified of this action. Please note: If you have direct deposit, it will be cancelled, and you will need to set it up again with Human Resources.