SUBJECT: REIMBURSEMENT TO EMPLOYEES (Non-Travel)

APPLICABILITY: TOTAL UNIVERSITY

Employees should purchase items through the normal purchasing procedures and processes established at the University. However, should an emergency situation occur that necessitates the employee purchasing goods for reimbursement by the University; the following rules will apply in order to obtain reimbursement:

• Employees MUST follow all purchasing regulations required of the particular type of purchase and fund source being used.

• Employees will be reimbursed for sales tax on local accounts only. Refer Policy 2.1.2 "Sales Tax".

• Due to tax implications, employees will not be reimbursed for payments to an independent contractor.

• Employees will be reimbursed for payments to individuals for services, regardless of the source of funds, only if a true emergency exists.

• Reimbursements should be requested within 60 days from the date expenses were incurred. Purchases made in July and/or August should be submitted for reimbursement not later than 30 days after the University’s fiscal year-end, August 31, so that the expenditures can be charged to the appropriate fiscal year. Under IRS regulations, expense reimbursements that are not made to an employee within a reasonable period of time should be reported as income on the W-2 and subject to withholding and all payroll taxes. UNT uses 60 days as a reasonable period of time in administering this section of the IRS regulations.

• Explicit receipt documentation will be required which will serve as an invoice from the employee, and the individual receipts must have all the attributes of a standard invoice. Proof of payment will also be required.

• Food Policy 2.1.6 must be followed for food related reimbursements. Exorbitant expenditures for food may be reportable to the IRS as income.

• The purpose of the purchase as well as documentation of the circumstances requiring the emergency expenditure must be noted on the request for reimbursement.

• This policy does not pertain to employee travel items. See Policy 2.1.15 for detailed travel policy.

• This policy does not pertain to student refunds, unless it is a reimbursement for items purchased on behalf of the University and the student is also an employee.

• Employees may be reimbursed on a check request form, with proper documentation attached.

• If a non-employee purchases something on behalf of the University, the reimbursement request should be filed on a requisition. All items above apply except/or in addition to the following:

• If tax issues are involved, the filing will be accomplished on a 1099.
• A statement explaining why the non-employee made a purchase for UNT will be required.

• This policy does not apply to refunds for items an employee or individual has paid to the University.
• The PPS Director or Senior Associate Director must approve situations involving “true emergencies”, and approve any exceptions to the items or situations listed in this policy.