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 dollarsby 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 includethe 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)
Hotel
Meals
Taxi charges
Registration fees
Sub Total
HST
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 providedthe credit card statement that indicates the exchange rate charged HHS will use that rate for the reimbursement item.
□Original receiptsneed 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
□We will now accepta per diem amount for meals. Refer to Appendix A below:
Meal / CANADA / USA / EUBreakfast / $15 / S15 / 15
Lunch / 20 / 20 / 20
Dinner / 35 / 35 / 35
Incidentals / 5 / 5 / 5
Total / $75 CAD / $75 USD / $75 EURO
□If you choose to send meal receipts you meed to submit original itemized receipts up to $75 per day
□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.
For expenses that include alcoholic beverages refer to the Alcohol Policy.
□Signature by the appropriate signing authority is required on all cheque requisitions. If the reimbursement is to the MRP or PI of the account and they have sole signing authority 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, PSTor HST are on a receipt please place the tax amount in the appropriate tax box at the bottom of the cheque requisition. The subtotal amount is the amount before taxes. This should be placed in the subtotal box at the bottom of the cheque requisition.
□The receipts and back up provided should agree to the amounts listed on the requisition forms so it can be followed easily. If providing additional documents that are not applicable please strike out page or write N/A to ensure these items are not being considered during validation.
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 HHSstaff 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 Human Resources General Line at 1-877-667-2700. 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 have to 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 individual.
□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.
□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 Labour Distribution report as back up for the recovery with details of hours worked by each individual employee.