University of Missouri - Accounting Services

Determining the Need for an Expense Advance - Special Circumstances

The University reimburses travel expenses under what the IRS calls an “accountable” plan.  This means the University ensures that expenses are accounted for in accordance with IRS rules. Reimbursements made under an accountable plan are not taxable to the employee. Payments made to employees that are not adequately accounted for are considered to be made under a non-accountable plan, and have to be added to the employee’s taxable compensation, and are subject to withholding.  

 The University’s plan does not allow per diem.  However, there are situations where it is necessary to give funds in advance for legitimate expenses that will not be accounted for afterwards.  Please consult the Expense Advance Coordinator in Accounting Services prior to requesting funds if you have visitors or students who need to have money provided for meals, and documentation of expenses is not possible or feasible.

 1.  Full Time FTE employees that can document expenses after a trip:

• The University reimburses employees for all allowable travel expenses as outlined in the Business Policy and Procedure Manual (BPPM).

• Employees that travel should have a University travel card.   They can use their travel card to get a cash advance for incidentals such as taxis, which they can’t use a travel card or credit card for (up to 10% of their available credit limit is allowed as a cash advance on their travel card.)  After the trip actual expenses should be recorded on a travel expense form.

• Expense Advances - Rarely is funding given up front except when an employee is traveling to a foreign country for an extended amount of time.  This is generally covered in the BPPM.

 2.  Visitors and students who need to have money up front for meals, and documentation of expenses is not possible or feasible:

•  Up to a maximum of $31 per day for meals may be allowed.  (This maximum mirrors the federal per diem rate and is well below the University’s maximum reimbursement of $42.00 per day. Per IRS guidelines meal per diem payments that do not exceed the Federal Per Diem rate are considered to be paid under an accountable plan and are therefore not taxable to the recipient.) This protects both the person receiving the advance, as well as the University from IRS taxation and penalty.  Please contact the Expense Advance Coordinator in Accounting Services for details prior to requesting an advance.)

3.  Visitors, students, GRAs and GTAs who need to have money up front for other travel expenses, and documentation of expenses is not possible or feasible:

• In rarer circumstances it may be necessary to pay an individual a set amount to defray these expenses by non-PO voucher.  The payment would be coded as taxable to the recipient and would be eligible for a 1099.  Contact the Expense Advance Coordinator if you have these circumstances.

 4.  GRAs, GTAs and Part-time employees who will be able to document their actual expenses after a trip. 

• May be allowed if approved by the Chair and Dean’s office.  Please contact the Expense Advance coordinator in Accounting Services for further details.