Sorry, you need to enable JavaScript to visit this website.

Main menu

Travel

Expand all | Collapse all

1. Do charter schools have to use the Arizona Department of Administration (ADOA) reimbursement rates for travel expenses like school districts?

No. Charter school governing boards may prescribe amounts for reimbursing mileage, lodging, and meals and incidental (meals) expenses incurred for school purposes different from those ADOA established. However, reimbursement amounts should generally not exceed the maximum amounts ADOA established because the reimbursement rates follow the Internal Revenue Service (IRS) limits outlined on the U.S. General Services Administration (GSA) website at www.gsa.gov/perdiem. One exception is the ADOA mileage reimbursement rate, which is currently less than the IRS standard rate. If the school chooses to reimburse lodging, meals, and mileage expenses in excess of the IRS limits, the school will be required to include amounts in excess of the IRS limits in the employee’s income on Form W-2. Schools may refer to USFRCS §VI-I for a brief discussion of travel reimbursement policies and procedures.

2. Where can charter schools obtain information regarding the current ADOA reimbursement rates for travel expenses (mileage, lodging, and meals)?

The travel policy and current reimbursement rates for mileage, lodging, and meals are available through the ADOA website as part of the State of Arizona Accounting Manual (SAAM) Travel Policy (Topic 50, Section 95). Lodging rates are exclusive of taxes; therefore, schools may reimburse employees for actual expenses up to the maximum lodging reimbursement rates plus any applicable taxes. Meal reimbursements include the actual amount spent for a meal, not to exceed the maximum meal reimbursement amounts.

To obtain the lodging and meal reimbursement rates for Alaska, Hawaii, and out-of-country locations, contact the General Accounting Office of ADOA at (602) 542-1750, or visit the U.S. Department of Defense website at http://www.defensetravel.dod.mil/site/perdiemCalc.cfm to find the rates for the appropriate location. If using this method, print a copy to include with the travel claim as support for the rate used.

3. Are there IRS requirements that employees must meet to be able to exclude travel reimbursements from their income?

Yes. The IRS requires employees to be traveling “away from home” in order to exclude reimbursements from their income. The phrase “away from home” means to require someone to travel overnight or long enough to require substantial “sleep or rest” (further defined by IRS regulations). As a result, all meal reimbursements for travel with no overnight stay must be reported as a taxable employee benefit. For travel with an overnight stay, meal reimbursements for the day of and the day after the actual overnight stay should be excluded from income.

4. What expense object code should be used to record taxable meal reimbursements for employee travel without an overnight stay or substantial rest period?

Schools should process all employee travel reimbursements through their payroll department. Schools should use object code 6290─Other Employee Benefits to record taxable meal reimbursements for employee travel without an overnight stay or substantial rest period. For travel expenses that are not taxable to the employee (meal reimbursements with an overnight stay or substantial rest period, and mileage and lodging reimbursements), schools should use object code 6580—Travel.

5. For taxable meal reimbursements without an overnight stay or substantial rest period, which taxes should be withheld from the reimbursement amount?

When an employee receives meal reimbursements for travel without an overnight stay or substantial rest period, the district should withhold social security, Medicare, and federal and State income taxes from the taxable meal reimbursement. State retirement and long-term disability should not be withheld from taxable meal reimbursements.

6. If a charter school governing board member is in travel status and does not stay overnight or have a substantial rest period, are meal reimbursements taxable, and how should the school account for taxable reimbursements?

For a charter school governing board member to be considered in travel status, the member must be 50 miles away from his or her home. If the board member does not stay overnight or have a substantial rest period, meal reimbursements would be taxable, and the board member should receive a W-2 at the end of the calendar year for such reimbursements. Under IRS regulations, the board member would be considered a school employee for purposes of the taxable meal reimbursements and would be required to complete the following payroll documents outlined on USFRCS pages VI-H-2 through 3: employment eligibility verification (Form I-9), and employee federal and State withholding allowance certificates (W-4 and A-4).

7. If two employees share lodging while traveling, can the lodging cost exceed the single room reimbursement amount?

Yes. Each school’s governing board may establish travel policies and reimbursement amounts to allow this reimbursement method provided the reimbursement per person does not exceed the allowable amount per person at the single room rate plus tax.

8. Do the lodging reimbursement rates still apply when a traveler is attending a conference?

Although the lodging reimbursement rate generally may not exceed the listed maximum, an exception may be made for conference lodging. Conference-designated lodging includes lodging at the hotel at which the conference is being held or other hotels listed in the conference brochure. Accommodations at alternate hotels in the immediate vicinity of the conference may be considered as conference-designated lodging when no vacancies exist at the hotels listed in the conference brochure. However, reimbursement for lodging should not exceed the conference hotel’s least expensive single-room rate plus taxes. A copy of the conference brochure must be submitted with the travel claim to support the excess reimbursement.