Corporate card taxability reminder

The revised Using a University Corporate Card policy introduced a new provision that would make PCard and T&E Card (formerly TCard) transactions submitted 60+ days after the transaction date taxable to the cardholder (unless there are documented extenuating circumstances). Beginning October 15, 2024, transactions submitted after 60 days will be reviewed by the Tax Management Office to determine if they should be reported as taxable income.

In order to prevent a taxable scenario, the following best practices are recommended:

• Submit expenses as soon as possible after the transaction, including transactions that may be in error or fraudulent. Take the appropriate action with either the supplier or bank as early as possible to resolve the issue. Add as much information as possible to the original transaction outlining the circumstances at the time of submission.
• Always gather itemized receipts at the time of the transaction to avoid delays due to documentation requirements:
• PCard — all transactions require an itemized receipt/invoice
• T&E Card (non-travel/hospitality) — all transactions require an itemized receipt/invoice
• T&E Card (travel) — all lodging and any $25+ transactions (excluding meal per diems) require an itemized receipt/invoice
• Clearly explain the reason for the purchase and whether there were any unique circumstances that impacted the purchase.

Policy Change: Using a University Corporate Card

The University has made a significant policy change regarding the use of Procurement Cards (PCard) and Travel Cards (TCard). The new Using a University Corporate Card policy replaced two policies to help provide consistent handling requirements between card types. Other major changes to the policy include:

• PCard and TCard transactions must be reconciled and submitted for approval within 60 days of the original transaction date.
• Transactions submitted after 60 days may become taxable to the cardholder or be required to be repaid. Do not wait to submit your transactions.
• Cardholders leaving the University must reconcile all pending expenses prior to their last day of employment. Any incomplete transactions may be invoiced to the cardholder for repayment or be treated as taxable income.
• The per transaction limit is being increased from $2,500 to $5,000. Purchases above the new threshold should be discussed with ASRCentral@umn.edu.
• How to use a TCard to make hospitality purchases is more clear in the policy.

The corporate cards are available as a convenience, but not necessarily as a primary means of making purchases. If you are not sure how best to proceed with a particular purchase, please contact ASRCentral@umn.edu.

Chrome River update

Due to an upcoming change in reporting functionality, it will no longer be possible for Morrill Shared Services to send reminders to TCard cardholders with unreconciled transactions prior to the 60-day reconciliation deadline. Cardholders will continue to receive the automated notifications from Chrome River, so it will be imperative for you to act on those notifications and submit the unreconciled transactions. As a reminder, policy requires expenses to be submitted in Chrome River within the following timelines:

• TCard: 60 days of original purchase or transaction date.
• Out-of-Pocket (non-travel): 60 days of original purchase date, otherwise the expense is unallowable.
• Out-of-Pocket (travel): 60 days from end of travel, otherwise the expense is unallowable.

Requesting TCards reminder

Please do not submit TCard applications directly to the Controller’s Office because additional local approvals are required to complete the application. All applications for new credit cards should be sent to ASRCentral@umn.edu following director approval, so the remaining required approvals can be completed. Incomplete applications sent to the Controller’s Office will not be processed, which can add significant delays to your card’s arrival (regularly 6-8 weeks).