https://www.irs.gov/government-entities/federal-state-local-governments/spousal-travel
Generally, the University does not pay for or reimburse the travel-related or entertainment expenses (e.g., airfare, hotel, meals, etc.) of an employee's or other authorized person's spouse/companion or guest.
There may be an occasional exception where the University will pay for the costs associated with such travel for a spouse/companion. In those circumstances, the University has identified the travel as having a bona fide business purpose, and the presence of the spouse/companion is essential (not just beneficial) to the employee or other authorized person being able to carry out the business purpose for the University. In other words, the spouse/companion or guest’s participation would have to be so essential to the University’s business objectives that it would not be possible to achieve the business objectives of the event without their presence. Although the University may deem certain spousal/companion travel to have an important business purpose, at the same time, such travel may not be considered to have a bona fide business purpose to meet the requirements set by the IRS. In such cases, the expenses associated with spousal/companion travel may be reimbursed by the department using only local funds and the companion will be taxed.
|
Expense |
Reimbursable |
Bona Fide |
Taxable |
|
Companion travel for employee with a disability |
Yes |
Yes, justification required |
No |
|
Companion Travel for recruitment |
Yes |
No |
Yes |
|
Companion Travel for Childcare |
No |
No |
N/A |
|
Non-UVA Employee at a Business Meal |
Yes |
No |
Yes |
To request reimbursement of companion expenses, there must be a documented and bona fide business purpose directly benefiting the University and the presence of the spouse/companion is essential to the University employee or other authorized person. Spousal/companion travel will only be reimbursed by the University if the travel is reviewed and a specific determination is made and approved in advance to determine if there is a bona fide business purpose for the spouse/companion to travel and represent the University. For spousal/companion travel to be considered for application of the bona fide business purpose exception, a request for spousal/companion travel companion reimbursement must be made by completing a Spend Authorization in Workday Expenses. https://uvafinance.virginia.edu/resources/create-spend-authorization-qrg
Companion Travel may not be purchased using a T&E card, even if deemed Bona Fide. A reimbursement request can be made after travel is complete.
If travel is purchased using a T&E card and is not deemed bona fide, the expenses will be treated as taxable income to the T&E cardholder who purchased the ticket per the IRS regulations.