What is the three hour rule?
A traveler may be reimbursed for meal expenses only after the traveler is in travel status for three hours beyond the traveler’s regularly scheduled working hours for any one day. What is a substantiated business connection? Non overnight meal reimbursement will be treated as non-taxable provided a substantial business discussion occurs during the meal. When seeking reimbursement for business related meals, employees must document the purpose of the meeting and who was in attendance. This includes the “meals with business” rule as outlined in BPPM 70.31. When will this change be effective? Non-overnight travel meal reimbursements that do not have a substantiated business connection paid on or after January 1, 2000 will be treated as a taxable fringe benefit. Will this change affect other reimbursements such as mileage? No, this change only affects the taxability of meal reimbursements when non-over night travel occurs. How will the employee be reimbursed? In addition to receiving a tra
