Skip to Main Content

Policy Title: Accountable Plan

Boise State University Policy # 6290
Effective Date: November, 2010
Revised: May, 2011
September, 2011

To establish requirements for compliance with the University’s accountable plan.

Additional Authority:
Internal Revenue Code § 274

Applies to any individual paid or reimbursed for a university business expense.

Responsible Party:
Tax Compliance Office, 426-1235


  1. Policy Statement
    In accordance with IRS regulations, the University has an accountable plan that
    allows it to reimburse employees (and in certain cases non-employees) for
    authorized business expenses with no impact on taxable compensation. The
    accountable plan rules apply to all payments, reimbursements, or advances for
    authorized business expenses both travel and non-travel related.
  2. Accountable Plan Requirements
    1. To comply with the University’s accountable plan, an employee must:
      1. Have paid or incurred business-related expenses while performing
        services for the University. To satisfy this requirement, there must
        be a business connection or purpose for the expense and the
        expense must be both ordinary and necessary.
      2. Properly account for and substantiate the expenses within 60 days
        after the expenses are paid or incurred.
        1. To satisfy this requirement, an employee must document
          and request reimbursement for business expenses within 60
          days after the expense is paid or incurred.
        2. Travel-related expenses must be accounted for within 60
          days after the last day of a trip.
        3. Expenses are substantiated with original, itemized receipts,
          or when not available a printed receipt from the internet
          showing proof of purchase and payment.
        4. Per diem reimbursements for meals may be paid without
          supporting documentation up to the maximum allowed by the
          state travel policy for all official travel requiring an overnight
      3. Return any payment, reimbursement, or advance in excess of
        amounts substantiated within 60 days after the expense is paid or
        incurred. To satisfy this requirement an employee must repay the
        University any reimbursement or advance in excess of the amounts
        properly substantiated within 60 days after the advance or
        reimbursement was received.
  3. If one or more of the above three requirements are not met, the payment,
    reimbursement, or advance to the employee will be included in the
    employee’s wages, subject to tax withholding, and reported to the IRS and
    the employee on the applicable form. Reimbursements will not be
    processed if received more than 120 days after the transaction date, or if
    the employee is on travel status when the expense is incurred, more than
    120 days after the last date of travel.
  4. The substantiation requirements of this policy also apply to nonemployees (e.g., independent contractors) conducting University
    business. If a non-employee does not properly account to the University
    for his or her expenses, the individual will not be reimbursed.