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TAX SECTION Given by: John Harabedian Terri Shields A component of the Business/Accounting Certificate Program. TAX EXEMPT STATUS. Rutgers has dual status as a state instrumentality and also as a 501(c) (3) tax-exempt organization.

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TAX SECTION

Given by:

John Harabedian

Terri Shields

A component of the Business/Accounting Certificate Program


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TAX EXEMPT STATUS

  • Rutgers has dual status as a state instrumentality and also as a 501(c) (3) tax-exempt organization.

  • In most cases, Rutgers is exempt from state sales tax. Exemption letters can be obtained, if needed, from the Tax Department.

  • Hotel Occupancy tax


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Payments to Non-resident Aliens(Processed on a Check Request)

  • Nonresident vs. Resident for US Tax purposes

  • US Source Income vs. Foreign Source

  • Tax Withholding – required unless filing exemption.

  • Tax Treaties - 8233 Form

  • Tax ID # requirements (needed for exemption).


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Relocation/Moving Expenses

  • Rutgers Policy and Procedures library

    See number 60.1.6

  • Non taxable employee moving expenses:

    • Actual moving of household goods, one way airline fare per person, or mileage @16.5 cents per mile in 2010, and hotel if traveling on ground.

  • Taxable moving expenses

    • Reimbursement for any other moving expenses, including house hunting, meals, storage and temporary housing will be reported as gross wages through Payroll on a W-2 form .

      A component of the Business/Accounting Certificate Program.


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TAX DEPT WEBSITE

  • Taxation Topics

  • Tax Exemption Letters and Certificates

  • Tax Links

  • http://www.rci.rutgers.edu/~univcont/tax_department/

  • Senior Tax Accountant - Anelia Dolan (732) 445-4212 [email protected]


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TABER & AUDIT HISTORY

  • Original Internal Audit Report

  • Board of Governor mandate

  • SCI Report

  • Other Audits

  • Job Responsibility

  • Rutgers Audit Process


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RU TRAVEL.RUTGERS.EDU

  • Rutgers Policy 40.4.1

  • New travel restriction memo’s

  • Per diem meal rates-domestic & foreign & IRS rates

  • Oanda currency conversion-required for all currency uses

  • Mapquest

  • RU Travel agencies

  • TABER Form &Lost receipt form


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Travel Policy Amendments

  • State budget travel restrictions

  • Travel on non state accounts has no policy change

  • Out of state travel currently not permitted on state account

  • Amended Policy to be issued

  • Travel $ pool

  • State mileage rate of 31 cents


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State Account Restrictions

  • No travel agency permitted

  • No cruise ship travel

  • No meals for 1 day trips

  • No meals for in state travel

  • No out of state conference registration or business meals on check request or taber

  • No overnight travel in NJ


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“ IRS-Accountable Plan”

  • Must meet all 3 of the following conditions or the expenses may be taxable to the traveler:

    • There must be a business connection.

    • All business expenses must be substantiated (date, amount, place, and business expense being submitted to the employer within a reasonable time period).

    • Employees are required to return all advance amounts in excess of substantiated expenses.

  • Unallowable expenses must be deducted at the end of the TABER in the “Less Amount Disallowed” field or simply not recorded on page 1 of the TABER.

    A component of the Business/Accounting Certificate Program.


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Travel And Business Expense Reports (TABERS)

  • Used for requesting reimbursement for employees out-of-pocket expenses incurred while traveling on University business.

  • Also used to reimburse other University business related expenses such as business meals.

  • Can be used to purchase small incidental items under $500 according to the purchasing guidelines.

    A component of the Business/Accounting Certificate Program


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Purpose of Travel, Travel Incidentals, and Meal Expense Policy (40.4.1)

  • To make travelers, approvers, deans, directors, and department heads aware of their respective roles and responsibilities when submitting and approving travel and business-related expenses.

  • More restrictive rules/policies may be specified by the deans, directors, and department heads of individual schools, divisions, departments, and/or by the funding source(s), such as external sponsors.

  • To ensure that reimbursements made to university employees will not be considered taxable income under IRS regulations by maintaining an “accountable plan”.

    A component of the Business/Accounting Certificate Program.


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Travel Advances Policy

  • Generally requested for hotel deposit, transportation, meals & incidentals.

  • Must use the Travel Advance Form (TAF) available on the RIAS website

  • Requests for greater than $100 per day of travel must have a justification letter attached request.

  • Will not be issued more than 2 weeks prior to the traveler’s departure date.

  • Exception – Transportation expenses can be distributed up to 90 days in advance of departure date.

    A component of the Business/Accounting Certificate Program


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Travel Advances (cont’d) Policy

  • Settled by submitting a Travel And Business Expense Report (TABER) with appropriate receipts within 60 days of the traveler’s return to work.

  • Must be settled before subsequent advances are issued.

  • Send requests to Division of University Accounting, Room 300, Administrative Services Building, Busch Campus, attn: Lisa Robinson. Questions (x5-3354).

    A component of the Business/Accounting Certificate Program


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Expense Report Requirements Policy

  • Detail of the business reason or purpose for the expenditure, Clear explanations.

  • Itemization and all original receipts for every expense over $50,( except meals.)

  • Original signature of the individual traveler requesting reimbursement, and

  • Approval of the TABER by the traveler’s supervisor or the supervisor’s designee who does not report to the traveler.

  • Traveler must submit the expense report within 60 days.

  • TABERs submitted beyond one year after the date(s) of travel will not be reimbursed

    A component of the Business/Accounting Certificate Program


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Reimbursable Travel Expenses Policy

  • Commercial Air

    • University will reimburse only for coach class tickets aboard a regularly scheduled commercial carrier.

    • For reimbursement of airline ticket purchases, proof of payment for the airline ticket. Boarding passes when possible are to be submitted with the TABER.

  • Commercial Bus/Rail Fares

    • Reimbursement will be the reasonable actual cost. The ticket stub or a detailed receipt must show the fare.

      A component of the Business/Accounting Certificate Program.


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Reimbursable Travel Expenses (cont’d) Policy

  • Lodging Reservations

    • The trip must be more than 100 miles one-way. Exceptions must be approved, explained and included in the reimbursement request and attached to the TABER.

    • The original receipted hotel bill must substantiate the expenses and must specify rate, date(s) of stay

    • Proof of Hotel payment must be attached to TABER.

      A component of the business/Accounting Certificate Program.


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Reimbursable Travel Expenses (cont’d) Policy

  • Car Rental

    • Must be a business justification or when there is no other means of transportation.

    • Reimbursement only to the traveler who signed the rental agreement

    • Original receipts for car rentals and the rental contract must be attached to the TABER.

  • Ground Transportation

    • Includes from the traveler’s home, or from their work site to the airport, bus, or train station @31 cents per mile.

    • Receipts must show amount and the date of service.

      A Component of the Business/Accounting/Certificate Program.


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Reimbursable Travel Expenses (cont’d) Policy

  • Employee Meal Expenses (3 options)

    • Option 1) Reimbursement for actual expenses up to $60 per day.

      • Submit itemized original receipts with proof of payment.

      • Do not seek reimbursement for a meal that is included in travel, such as at a conference. Conference agenda is required to substantiate meals provided at conference.

      • Individual meal expense must be a reasonable portion of the $60/day option.

        A component of the Business/Accounting Certificate Program.


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Reimbursable Travel Expenses (cont’d) Policy

Employee Meal Expenses:

Option 2) Meal allowance – no receipts: $30 per day reimbursement or $50 per day from major city chart on travel web site

  • Must be prorated for any day meals are provided at a conference.

  • This option must be used for entire trip.

  • Prorated daily allowance for departure and arrival times on travel dates

    A component of the Business/Accounting Certificate Program.


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Reimbursable Travel Expenses (cont’d) Policy

Employee Meal Expenses:

Option 3) IRS federal per diem rate from travel web site

  • This option must be used for entire trip.

  • Must be prorated for any day meals are provided at a conference.

  • Prorated daily allowance for departure and arrival times on travel dates

    A component of the Business/Accounting Certificate Program.


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Reimbursable Travel Expenses (cont’d) Policy

  • Employee Meal Expenses:

  • % of meal per diem rate when a meal is provided at conference:

    breakfast 20%

    lunch 20%

    dinner 60%

A component of the Business/Accounting Certificate Program.


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Reimbursable Travel Expenses (cont’d) Policy

  • Employee Meal Expenses:

  • % of meal per diem for departure date

  • 12:01 am to 7:00am 100%

  • 7:01am to 1:00pm 80%

  • 1:01pm to 7:00pm 60%

  • 7:01pm to 12:pm 0%

A component of the Business/Accounting Certificate Program.


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Reimbursable Travel Expenses (cont’d) Policy

  • Employee Meal Expenses:

  • % of meal per diem for arrival or return date

  • 12:01 am to 7:00am 0%

  • 7:01am to 1:00pm 20%

  • 1:01pm to 7:00pm 40%

  • 7:01pm to 12:pm 100%

A component of the Business/Accounting Certificate Program.


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Business Expenses Policy

  • Business Meals for Meetings

    • Receipts must be original, itemized and include the provider’s name and date, the name(s) of any other person included on the bill, and purpose of the meeting.

    • Receipt must indicate that bill was paid. Credit card receipts alone are not acceptable.

    • To determine if business meal expense is appropriate, consult with your supervisor who should use professional judgment in determining whether:

      • Topic of discussion (meeting) warrants use of University funds for meal expense.

      • Benefit derived from incurring expense is most effective, efficient and productive way to use university resources.

      • Fund are available.

        A component of the Business/Accounting Certificate Program.


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Business Expenses Policy

  • UNDER $500 small goods and services for emergency purposes

  • All violations must be sent to purchasing dept for one time approval if appropriate

  • Use purchasing dept for goods and services over $500


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Examples of Noncompliance Policy

  • Missing the reason or business purpose for the reimbursement.

  • Approving of TABER by subordinates.

  • Failing to provide receipts for all expenses

  • Expenses that are not Rutgers business-related.

  • Charging alcohol on state and grant accounts.

  • Meals included in the cost of conference/meeting fees

  • Charging a higher per mileage rate for use of personal car than allowed by the University. (Currently, the mileage rate is 31 cents per m)

  • Seeking reimbursement for mileage and gas expense concurrently.

  • Seeking reimbursement for a spouse or family member’s travel costs

    A component of the Business/Accounting certificate program.


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Subcode Review Policy

  • Commonly Used:

    • 3490 Travel Advances

    • 3500 Travel/Meals

    • 3510 Travel-Recruitment

    • 3520 Travel-Domestic-DGCA

    • 3530 Travel-Foreign-DGCA

    • 3540 Travel-Consult-DGCA

    • 3550 Employee Moving Exp

    • 3560 Training

    • 3590 Registration/Conf. Fees

      For a full listing of expense type sub codes see the SC screen on OFIS.

      A component of the Business/Accounting Certificate Program


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Expense Report References Policy

  • Regulations and Procedural Manual

    • 40.4.1 Travel, Travel Incidentals and Meal Expense Policy

    • 60.1.6 Policies and Procedures Concerning Employee Relocation

  • Travel Website www.rutravel.rutgers.edu See Responsibilities.

  • Call Dept. Business manager

  • Tax Dept-Terri Shields, Taber compliance 445-2798

    A component of the Business/Accounting Certificate Program



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