HR & Payroll News

Taxability of Reimbursements

All employee reimbursement requests and supporting documentation must be submitted through the Mason Finance Gateway within 60 days after the return of business-related travel or the date the expense was incurred for Mason. Travel and non-travel reimbursements submitted more than 60 days are considered taxable income and are subject to taxation per the Internal Revenue Service (IRS).

Beginning January 2022, Mason will implement changes to the process for travel and non-travel taxable reimbursements. The changes are outlined below for each department.

  • Accounts Payable

Employees will receive the full approved reimbursement amount processed through the Accounts Payable Department. For example, if the employee submitted $100.00 for a taxable non-travel reimbursement, the employee will receive $100.00.  However, $100.00 is taxable income to the employee.

  • Payroll

Taxable travel and non-travel reimbursements will be processed at the end of each quarter: March, June, September, and December. The full reimbursement as mentioned in the example above will be reported as income and added to your W2 in the quarter received to withhold the applicable taxes from the employee’s paycheck.

 

Questions

Questions related to tax deductions, timing, and the financial impact, may be addressed with the Payroll office at payroll@gmu.edu.

Questions related to travel and non-travel paperwork, approvals, and the date of submission, may be addressed with the Travel Office at travel@gmu.edu