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Division of Finance Access Only
	Footprints Service Desk

VP for Finance & Treasurer
University of Pennsylvania
Suite 731 Franklin Building
3451 Walnut Street
Philadelphia, PA. 19104

215.898.9844 (Phone)
215.573.6392 (Fax)

[ Financial Policy Manual ]

2361.1 Travel Reimbursements to Non Employees, Companies
and Non-Resident Aliens
Effective: July 2006
Revised:
Last Reviewed:
Responsible Office: Travel
Approval: Travel
View PDF Version

Expense Reimbursement for Non-employees

The University will pay the travel costs of non-employees (job applicants, lecturers, consultants and other individuals) when the schools and centers have agreed to do so.

Payment will be made in accordance with the policies outlined in this policy manual.

A non-employee's signature is not required on the Travel and Entertainment Expense Report provided some accompanying correspondence or email is attached outlining the expenses that have been incurred and requesting reimbursement. A signed W-9 form should be attached as well if the person is a US citizen and is being paid by the University for the first time. Individuals requesting reimbursement may elect to provide (a) original receipts for travel expenses of $25 or more, or (b) copies of receipts which will require the University to report the payment as income in accordance with applicable governmental regulations.

Reimbursing Companies for Travel-Related Expenses

If a company elects to be paid for travel-related expenses rather than the individual who traveled, they may do so.

In these cases the company must provide a detailed list of all expenses for which reimbursement is requested and attach it to an invoice or bill for services. It is not necessary for the company to provide original receipts with the invoice; however, the University reserves the right to inspect such receipts.

Business administrators should prepare a Request for Payment form (C-368) and submit the form with the attached invoice to Accounts Payable for processing. Services rendered should be charged to Object Codes 530X-531X and travel charges to the appropriate Travel Object Codes. The federal tax ID of the entity must be provided.

Travel Reimbursement to Non-Resident Aliens

When submitting a travel reimbursement for non-resident aliens, you need to attach a copy of their passport, a copy of the visa designation which is stamped into their passport and a copy of their I-94 card.

Generally, payments to non-resident aliens for travel related expenses are subject to 30% federal income tax withholding, at source, in accordance with Internal Revenue Service (IRS) regulations. However, payments may be exempt from withholding if a tax treaty exists with the country of citizenship of the non-resident alien. Such treaties may provide for the exclusion of some or all of the payment from taxation.

The Travel Office will give the Travel Reimbursement form to the Tax Office for review. The form may be:

• Approved if all the necessary documentation is attached and the non-resident alien has met the necessary visa and treaty requirements
• Returned to the department for more information and/or missing documentation, or
• Rejected because of a visa designation that does not allow us to reimburse the individual for any travel expenses

To make sure that your forms meet the necessary requirements, you may want to check with the Tax Office at 898-6573.

If you are reimbursing a non-resident alien who has traveled here and is returning to his or her place of origin, you may reimburse them prior to departure provided they have met the above requirements and have given you all the necessary lodging and meal receipts as well as a copy of their airline ticket.

Advances for Non-employees

The University will not normally provide non-employees with travel advances. Exceptions will be granted for special circumstances which need to be documented to the Travel Office. A department representative is required to state the special circumstances and should sign the Travel Advance form on behalf of the non-employee, where indicated, acknowledging that the monies advanced are required to be accounted for and that they will be responsible for reconciling the advance for this non-employee in a timely manner with the appropriate receipts attached.

Advances to Non-Resident Aliens

The only time we will consider giving visiting non-resident aliens an Advance, is if they are here at Penn and we are providing some type of Per Diem payment during their designated stay.

Payments need to be in the form of a check. The Advance request should contain the amount of per diem plus a copy of their passport, their visa designation which is stamped into their passport and a copy of their I-94 card. Payments cannot be processed without this information and payments cannot be generated prior to their arrival to Philadelphia

Non resident alien students may exclude reimbursed travel expenses from gross income (without any withholding) if they follow the IRS accountable plan rules.

Under these new guidelines, the department, school or center will be required to enter into a one-page “Contract for Personal Services Rendered by a Consultant/Independent Contractor” with those students who are not employed by the University, prior to each separate business trip made on behalf of the University.

A copy of this agreement must accompany each travel expense reimbursement form forwarded to the Travel Office for reimbursement.

Click here for the Contract for Personal Services Rendered by a Consultant/Independent Contractor form.