Expense Reimbursement

Layout for printing
Policy Number:
UW-3024
Old Policy Number:
320
Responsible Office:
Accounting Services, Division of Business Services

University Policy

Rationale/​Purpose:

This policy establishes standards for reimbursement of expenses in compliance with Internal Revenue Service (IRS) regulations, state law, and other university policies.

Definitions:
Accountable Plan
Standards for the reimbursement of individuals for business-related expenses incurred on behalf of the university.
Business Purpose
The reason for an appropriate, reasonable, and necessary expense that supports or advances the goals, objectives, and mission of the university.
Expense
An accounting entry that recognizes the consumption of goods and services.
Expense Operations Lead
A divisional business officer who may be responsible for the review and approval of expenses in Workday.
Expense Report
A categorized and itemized submission of expenditures incurred by an individual on behalf of the university.
External Committee Member
Non-employee reimbursed for UW-Madison business expenses through the Expenses module in Workday.
Supporting Documentation
Any materials required to support a specific purchase as outlined in UW-Madison policies and procedures.
Workday Expenses
A module in Workday used to create, submit, and approve expense reports for out-of-pocket, shared liability card, and purchasing card transactions.
Scope:

This policy applies to faculty, staff, students, and non-employees traveling or using funds and/or resources administered by the university.

Policy:
  1. Accountable Plan
    1. For reimbursements to be considered non-taxable income, the university’s travel policies and operational standards must comply with IRS Accountable Plan Rules. 
    2. To be considered an accountable plan, the following conditions must be met and must apply to all UW-Madison reimbursements:
      1. Reimbursements and advances provided to travelers under the plan must be for business-related expenses only.
      2. Cash advances must be fully reconciled within 30 days of the end of the business trip.
      3. Expenses must be submitted with required supporting documentation within 90 days from the date of purchase except for the following expense items which must be submitted within 90 days from the arrival date listed on the expense line of an expense report in Workday:
        1. Registration Fee
        2. Airfare
        3. Group Airfare
        4. Lodging (group, student and individual) 
        5. Tuition Reimbursement (the arrival date is the course end date)
        6. Job-Related Training (the arrival date is the course end date)
      4. If an expense report is sent back to the initiator, it must be resubmitted within 90 days of the send back.
    3. Expense Operation Leads have the authority to grant exceptions to the accountable plan for employees with extenuating circumstances (e.g., serious illness or unforeseen emergency out of their control).
      1. The employee must submit the Policy Exception Request form.
      2. Employee negligence and busy schedule or workload are not considered extenuating circumstances. 
      3. Expenses submitted for reimbursement beyond 90 days are considered taxable unless extenuating circumstances apply. 
    4. External Committee Member reimbursement requests in excess of the 90-day requirement must be submitted using a Supplier Invoice Request and are considered taxable.
    5. UW-Madison student employee reimbursement requests with a business purpose are subject to the 90-day requirement. 
    6. UW-Madison students who are not employees are exempt from the 90-day requirement when seeking reimbursement
  2. Documentation Requirements
    1. All required supporting documentation must be attached electronically to the expense report. 
    2. Electronic receipts must be clear and legible. 
    3. Sensitive information must be redacted from receipts in order to comply with HIPAA and the campus privacy notice.
    4. Receipts are required for out-of-pocket expenses and Shared Liability Card transactions greater than $50.
    5. Receipts are not required for the reimbursement of a traveler’s per diem allowance.
    6. The expense report, receipts, and other supporting documentation (e.g., agenda or brochure with conference dates, hotel, and provided meals) must offer enough information for expense approvers and post-payment auditors to review the validity of expenses without any follow-up.
  3. Incentives as Payment Method
    Incentives such as frequent flyer miles, vouchers, coupons, gift cards and other non-cash payments may be used for payment of expenses but cannot be claimed for reimbursement.
  4. Claiming Own Expenses
    1. Employees may not claim travel-related expenses for other travelers except for:
      1. Shared lodging expenses.
      2. Shared transportation expenses.
      3. Student travel where it would be inappropriate for the student to pay for their own travel expenses. Meals reimbursed under this exception are hosted meals, not individual meal per diems.
    2. Expenses reimbursed under these exceptions must list the name(s) of other traveler(s) for which the employee is claiming expenses.
  5. Consequences for Noncompliance
    Noncompliant expenses will not be reimbursed by the university.
Related UW-Madison Policies:
Related UW–Madison Documents, Web Pages, or Other Resources:

Expense Reimbursement Procedures

Policy Administration

Approval Authority:
Assistant Vice Chancellor of Business Services and Controller
Policy Manager:
Expense Reimbursement Program Manager, Division of Business Services
Contact:
Expense Reimbursement Program Manager -- Expense Reimbursement Business Services, expensereimbursement@bussvc.wisc.edu
Effective Date:
05-08-2017
Revised Dates:

07-01-2020, 11-10-2021, 04-05-2024, 07-05-2024, 10-01-2024, 07-01-2025

Reviewed Dates:

07-01-2020, 11-20-2023, 07-01-2025

Retrieved:
07-30-2025 05:59:00