There are times when procrastination doesn’t cause any problems, other than making your “to do” list longer the next day. But there are other times when procrastination can cost you money.

As of 2014, make sure you process your business travel expenses in a timely manner. Expense reports must be completed in a “reasonable” period in order to be reimbursed tax free. Do you really want to pay taxes a second time on your money?

The IRS definition of a “reasonable” period is 60 days, but the university and health system define this period as being 90 days from last day of trip for travel, and 90 days from date of expense for non-travel business expenses. They are giving you an entire extra month. I’m not sure about you, but in this economy I prefer to get reimbursed ASAP.

If you continue to procrastinate after knowing this information, do not process an expense report! The transaction will now have to be done via a bonus supplemental ISR so it can be reported on your W2.

The complete policy can be reviewed on the Accounts Payable Policy and Procedure Library website, in the “IRS Accountable Plan Rules” section. In addition, the JHU Travel and Business Expense Policies and Procedures guide has just been updated this year and is an excellent resource.

 

 

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