Title
TRIBAL COUNCIL
TRAVEL EXPENSE POLICY
Effective: January 30, 2014
Ref. No.: LP 01-09
Body
This policy implements Legislative Act #17-09 approved by the Tribal Council on June 15, 2009; amended by Rules Committee on November 15, 2011 and January 29, 2013.
Accountable Plan:
Reimbursements paid to Tribal Council members (TCM) under an accountable plan are not considered wages and are not reportable on the W-2 and are not subject to any employment taxes. (However, see NOTE in discussion of per diem below.) TCMs are considered a special class of employee.
An accountable plan requires TCMs to meet the following three rules:
1. They must have paid or incurred deductible expenses while performing services as a TCM.
2. They must adequately account for these expenses within a reasonable period of time.
3. They must return any amounts in excess of expenses within a reasonable period of time.
Amounts paid under an accountable plan are generally:
1. not wages (however, see NOTE in discussion of per diem below)
2. should not be included on the TCM’s W-2;
3. are not subject to income tax withholding, social security, Medicare taxes and FUTA.
Definitions:
1. While performing services as tribal council members: The TCM must substantiate the time, place and business purpose of their travel.
2. Adequately account: TCMs must adequately account for their travel, meals and other expenses incurred during their travel. They must provide documentary evidence. This evidence should include items such as receipts, along with either a statement of expenses, an account book, a day planner or similar record in which the TCM entered each expense at or near the time the expense was incurred.
3. A reasonable period of time: A reasonable period of time depends on the facts and circumstances. Generally, it is considered reasonable if the TCM receives an advance within 30 days of the time they incur the expense, adequately account for the expenses within 30 days af...
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