Dear Rutgers Colleagues:

In the past few months, University Procurement Services has received expense reports for expenses incurred more than a year before the report submission date. This type of delay adversely affects the person who submits the request, as well as their department/unit. Specifically, such expense reimbursements are included in taxable income and the department/unit is compelled to reconcile funds that were allocated, but not accounted for, during a particular fiscal period.

According to the Internal Revenue Code, business expense reimbursements may be excluded from taxable income only if they are substantiated by receipts that are submitted within a reasonable period of time. We have determined that expense reports for expenses incurred more than one year before the report submission date are outside of the reasonable time period required by the Internal Revenue Code. Consequently, such reimbursements must be included in wage, or taxable, income.

Process - Expense reimbursements more than one year old
Do not submit through Expense Management. All submissions are subject to audit and examination once submitted.

1. The department/unit business manager must complete the “Business Travel Reimbursement Over One Year” form (the “form”) requesting the reimbursements be processed as extra pay.
2. The chancellor or executive/senior vice president responsible for the department/unit must sign the form to approve submission of all expenses more than one year old.
3. All expense report documentation and receipts must accompany the form.
4. Send the form and supporting documentation to Payroll Services at:

33 Knightsbridge Road
Room B112
Piscataway, NJ  08854

If you have questions about this process, please contact the Procurement Help Desk.

Regards,

Nimish Patel, Associate Vice President – Procurement, and Chief Procurement Officer
Glenn J. Christofides, University Tax Director
Stephen Roga, Associate Controller – Payroll Services