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Finance-Expense Reimbursement Guidelines


									Guidance for Reimbursements to Individuals

Expense reimbursements to individuals can be complex ensuring that the regulations and legislation of the Canada
Revenue Agency and Employment Standards Act are followed. This guide is aimed at providing the
documentation needed to process individual reimbursements.

Reimbursements by Cheque Requisitions

□ For HHS employees: expense reimbursements are paid in Canadian dollars by Electronic Funds transfer
  directly to the employee’s bank account.

□ For non-HHS employees: Canadian residents are reimbursed in Canadian dollars and US residents are
  reimbursed in US dollars. Euro and other foreign currency payments are also made where applicable.

□ Reimbursements for travel should include the dates and purpose of the business trip on the requisition form.

□ Travel expenditures can be summarized into the following categories on a requisition form:
                                  Transportation (Air, Rail, Auto)
                                  Taxi charges
                                  Registration fees
                                  Sub Total

□ For expenses incurred in non-Canadian dollars the reimbursement will be based on the Bank of Canada
  exchange rate at the time the purchase. Or, if provided the credit card statement that indicates the exchange rate
  charged HHS will use that rate for the reimbursement item.

□ Original receipts need to accompany the reimbursement request (as an attachment to the requisition form).
  Note: a credit card statement is not considered an original receipt.

□ Boarding passes relating to air travel need to accompany the reimbursement request

□ Meals for overnight travel are reimbursed up to $50 per day. Original receipts need to accompany the
  reimbursement since per diem meal allowances are not provided.

□ If receipts include reimbursable meals for more than just yourself, please include the names of the individuals
  included on the bill and purpose of the meal.

□ Liquor on meal receipts is not reimbursable. Exceptions are made on a case by case basis dependent on the
  purpose of the meeting and the specific funding source. If alcohol is being reimbursed it should be a
  reasonable in proportion to the overall bill.

□ Signature by the appropriate signing authority is required on all cheque requisitions. If the reimbursement is to
  the MRP or PI of the account, an additional sign off will be done by OIRS to validate the payment. Where
   possible, individuals should not sign off on their own requisitions but should have another signing authority on
   the account sign off.

□ Please provide the Meditech account number is required

□ If GST, PST and HST are applicable please remove the taxes from the total of each receipt as these are
  reported separately.

□ The receipts and back up provided should agree to the amounts listed on the requisition forms so it can be
  followed easily.

Income/Payroll Reimbursements

□ Employees of HHS are paid through the payroll system. Please note that all accounts administered by OIRS
  are part of HHS and therefore, must adhere to the Employment Standards Act and HHS Policies. Regardless of
  funding source or cost centre charged, each HHS employee will have one employment record. Engaging
  current HHS staff to perform additional work can result in several complications including but not limited to,
  overtime pay being required. Prior to engaging an existing HHS employee to work or promising an incentive
  payment to an HHS employee, contact Mandeep Malhotra, HR Consultant at extension 74855 to ensure it is
  possible. Also, refer to the Research Staffing Guidelines on the HHS Internet.

□ For non-employees, Canadian residents and hours worked within Canada a Social Insurance Number (SIN) is
  required to process a T4A at the end of the year.

□ Or the individual’s business number is required and the cheque will be made payable to their corporation.

□ For hours worked outside of Canada, usually a US cheque requisition is completed.

□ Dates and hours worked should be included in the submission, along with the signature of the appropriate
  signing authority.

□ For non-residents working/receiving income for work performed in Canada (including honorariums), a
  withholding tax of 15% is taken and remitted to the Government of Canada. Their Social Security number is
  required to process the withholding tax. Also, at the end of the year HHS will process a T4A NR for the

□ Honorariums require additional supporting documentation such as a copy of the letter sent to the individual
  outlining the event the honorarium is for and indicating the honorarium amount.

□ Two non-cash gifts/awards for employees per year are non-taxable up to an annual limit of $500 and can be
  expensed with the appropriate documentation/signing authority signature.

□ Cash or cash equivalent gifts (including gift certificates) for HHS employees should be processed through
  payroll and will be included in their taxable income.

□ Cash gifts for non-HHS employees will result in a T4A to be included as income in that year for the individual
  and require their SIN # to process.

□ Salaries to McMaster University employees should be paid through the McMaster University payroll process
  and recovered by the University through HHS. Please include a copy of the McMaster University report as
  back up for the recovery.

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