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Texas Payroll/Personnel Resource

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Reimbursement of Meal Expenses During Non-Overnight Travel

Details

At the discretion of the chief administrator, a state agency may reimburse an employee for a meal expense incurred while conducting state business outside the employee’s designated headquarters for at least six consecutive hours.

A state agency may not reimburse a meal expense for travel lasting less than six consecutive hours unless the employee is a chief administrator of a state agency or the travel provisions of the General Appropriations Act authorize the reimbursement.

Tax Treatment

According to the Internal Revenue Service’s (IRS’) Fringe Benefit Guide, Publication 5137 PDF, reimbursements made under an accountable plan, as defined by the IRS, are normally excluded from taxable wages. Otherwise, the reimbursement may be considered taxable income to the employee.

Agencies must determine the proper tax treatment of these reimbursements, and if a reimbursement is considered taxable income, the agency must ensure those amounts are included on the employee’s W-2.

Additional Resources

For more information about travel reimbursement policies, see Textravel.

Sources

General Appropriations Act, Article IX, Section 5.05; Texas Government Code, Section 660.113(b); Internal Revenue Code, Section 162(a)(2).