Policy Notes: Reimbursable Business Expenses

  • The University's policy is to reimburse employees and approved non-employees for necessary and reasonable expenses incurred for authorized University business.
  • Reimbursements are to be consistent with federal regulations.
  • Prices paid are to be economical; when the price paid by the individual is more than what would have been paid by the University, the lesser amount will be reimbursed.

Reimbursable expenses include:

  • travel expenses, related to University business, including air fare, lodging, incidental expenses, use of personal auto, car rental, taxi fares and phone charges.
  • miscellaneous purchases in support of University business, such as supplies, books and equipment costing less than $2500 (purchases exceeding $2500 should be ordered through University Procurement.).
  • payments to human subjects, made by an individual (Direct payment to human subjects from the University can be made by requesting a check through the Other Checks module in iOU.).
  • cost of meals when there is a clear business purpose for the meal.
  • conference registration and training course fees, when related to University business.
  • dues & subscriptions for memberships to professional organizations and publications related to University business.
  • moving & house hunting expenses incurred by a new employee when recruited by Stanford.
  • gifts (tangible personal property) related to University business.

On this page:

Primary Policy Sources: Administrative Guide Memo 36.4, 36.6 and 36.7

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Air Travel

  • Travelers should book “lowest available airfare” – see Admin Guide Memo 36.7 Section 3 for criteria. Amounts over lowest available fare should be charged to an unallowable expenditure type and unrestricted PTA.
  • If airfare is charged to a government contract or grant, US carrier is required.
  • Business class allowed for flights over 8 hours but any portion over lowest available business class fare must be charged to unallowable expenditure type and unrestricted account (or 1/3 allowable, 2/3 unallowable).
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Approving Expenses

  • Employees cannot authorize/approve travel or expenses for themselves or for a person to whom they report either directly or indirectly.
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Business Meals

  • Amounts paid should be “reasonable and necessary.”
  • Reimbursement requests must state business purpose and reason for the meeting.
  • Individual attendees must be listed on reimbursement request unless a specific identifiable group is noted.
  • Alcohol must be charged to unallowable expenditure type and unrestricted PTA including a portion of tax and tip.
  • Spouses should be included only when appropriate, and always charged to unallowable expenditure type.
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Meals During Business Travel

  • You may claim actual meal expenses or per diem based on city visited.
  • If claiming actual expense reimbursement for meals, receipts for amounts over $75 are required.
  • When claiming meal per diem and purchasing a business meal for a guest, only the guest’s meal may be claimed.
  • Tips cannot exceed 20% unless mandatory charge for a large group.
  • When a meal(s) is provided by a conference, deduct partial per diem (dinner 60%, breakfast or lunch 20%.)
  • No meals or per diem may be claimed for one-day travel (no overnight stay.
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Car Rental

  • Stanford carries blanket car rental insurance policy for travelers. Travelers should not accept insurance for car rental within the continental US.
  • Outside of the continental US, traveler should accept insurance.
  • Prorated cost of car rental during personal days must be deducted from reimbursable expenses.
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Conference Fees

  • Reimbursement requests for undergraduate and graduate students should include a certification letter signed by a faculty member; for post docs include either the certification letter or a program showing the post doc as a speaker at the conference. If no certification (or program for post docs) is submitted, the expenses will be considered tax-reportable by the IRS. See Admin Guide Memo 36.7 Section 11.
  • Payments cannot include expenses for spouses, such as lodging, meals, or activities at the conference.
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Dues and Subscriptions

  • Voluntary contributions are not reimbursable.
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Foreign Receipts

  • Foreign receipts must be converted to US dollars. To convert foreign receipts, go to: http://oanda.com/convert/classic.

    In the above Oanda web site, enter date of receipt, or date the plane ticket was issued (not necessarily the travel date) to get proper conversion.
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Gifts

  • Retirement and years of service gifts that comply with University policy are not tax-reportable. (See Admin Guide Memo 23.8 Section 3) Other gifts (not retirement or years of service gifts) that are valued at more than $50 are tax-reportable, and reimbursement requests must include the payee’s social security number and home address for tax purposes.
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Human Subjects

  • If individual payments are $100 or more, or, if the recipient will receive payments totaling $600 or more in the calendar year, social security numbers and home addresses for the subjects are required when requesting reimbursement.
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Lodging

  • Travelers are expected to use lodging that is necessary and reasonable, selecting the lowest standard room rates available.
  • No overnight stay allowed when traveling 50 miles or less each way from Stanford.
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Lost Receipts

  • Original receipts are required for expenses over $75.
  • If an original receipt is not submitted as a backup document, a lost receipt memoalong with proof of payment, such as a credit card statement, must be included.
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Moving / House Hunting Expenses

  • Some expenses are subject to tax reporting and will be submitted to Payroll (see Admin Guide Memo 36.8 for more information)
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Reconciling (Clearing) Advances

  • If the business need for an outstanding advance ceases to exist, the funds advanced must be returned immediately to Travel and Reimbursements in the form of a check made out to Stanford University. Contact the Disbursements Office[link] for details.
  • Advances not cleared by expected clearing date will be cleared, whenever possible, from subsequent reimbursements for the same payee indicated on the advance.
  • If an advance is not cleared within 60 days of the completion date of the trip or activity, the advance will be forced-cleared by Disbursements and the amount of the advance will be tax-reportable to the individual who received the funds, under IRS rules.
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Reimbursement Payments to Foreign Visitors

  • Foreign visitors must include additional documentation with reimbursement request: an LA-6 form and copies of the visitor’s passport and visa, and a copy of the I-94 Arrival/Departure card that is stapled into the passport upon entering the US and removed upon leaving the US.
  • If the payee is a US citizen but is being reimbursed for expenses paid for a foreign visitor, such as airfare or lodging, the documents listed above must be included with the backup documents.
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Required Documentation for Travel Reimbursement

  • An itinerary receipt for airfare, showing proof of payment, from a travel agency, airline, or online booking tool
  • Itemized hotel bill for lodging (if claiming actual expenses reimbursement)
  • Receipts for meals and other miscellaneous expenses, i.e. taxis and shuttles, costing over $75. If no itemized receipt is submitted for a meal, traveler must indicate amount of alcohol included, or state that there was no alcohol included in the meal.
  • Itemized car rental agreement for a car rental expense. Amount submitted for reimbursement should not include charges for insurance unless in Hawaii or a foreign country.
  • Receipts should include proof of payment. A credit card statement is proof of payment but does not qualify as an itemized receipt.
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Use of Personal Auto

  • Use shuttle instead of personal auto if two travelers are making the same 2 round trips to airport, or one traveler is making round trip plus parking for short trips.
  • Auto mileage + parking should be comparable to shuttle costs.
  • Mileage from home to airport may be claimed when traveling weekends or outside business hours: otherwise, mileage is the distance from Stanford to the airport.
  • For local travel or errands, keep a log with date, odometer readings and destination.
  • Driving in lieu of flying cannot exceed the cost of airfare plus ground transportation.
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When to Make Reimbursement Request

  • Within 10 days of incurring expense, or 10 days after completing travel
  • Per federal regulation, reimbursement requests made after 60 days of incurring the expense (trip, meals, supplies, etc.), will be reported to the IRS as taxable income.
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