Business and Travel Expenses

The university outlines its guiding principles and the IRS regulations for business and travel expenses in Administrative Guide Policy 5.4.2: Business and Travel Expenses. The university pays directly or reimburses individuals for expenses that are necessary and appropriate to conduct university business. Depending on the category of the goods or services, the most appropriate purchasing and payment method may vary. Common types of business expenses include business and travel meals, lodging, airfare, and ground transportation. Conference registration, and training fees (i.e., STAP) are other types of business expenses.

For some categories of business expenses, such as business meals, the university has established maximums, which are regularly reviewed and updated in alignment with pricing indices. Schools and units are responsible for approving any exception to these maximums. Depending on the type of exception, approval from the Business Expense team may also be required. Detailed justification for the exception should be provided and attached to the transaction.

Reasonable and necessary expenses

• Reasonable means that the nature and amount of an expense does not exceed that which a prudent person would incur under the same circumstances. While these amounts may vary, a good test is whether the individual could defend the expense if it came under public scrutiny.
• A necessary expense is one that supports and furthers the university mission and its ongoing operation. 

Compliance with established university policies

Business and travel expenses must be consistent with established university policies and practices applicable to the work of the university, including instruction, research, and public service. 

Stanford University may strongly recommend against or restrict travel to or within countries where the U.S. Department of State has issued certain official Travel Advisory levels, where there is other reliable information of significant health or safety risks, and/or where exigent circumstances apply. See Office of International Affairs for more information. 

Travel and business expenses that do not reflect good stewardship of university resources, are found to benefit the individual at the expense of the university and/or are deemed excessive or fraudulent will be subject to further review by the appropriate office (e.g., Office of Chief Risk Officer or School/Unit Office), as outlined in Administrative Guide Policy 3.5.1: Financial Irregularities. 

Compliance with funding source-specific restrictions

Funding sources, including individual or corporate donors, government agencies, and non-government sponsors may have varying restrictions for their use. 

The university reimburses individuals in accordance with the IRS Accountable Plan. Under this plan, business expense reimbursements can be excluded from the beneficiary’s taxable income if the expense has a business connection, is substantiated and is submitted in a timely manner, as defined below. 

Business Connection and Substantiation of Expense

A business connection exists when expenses have been paid or incurred while performing university business. The business connection should be justified through the business purpose and supporting documentation. 

• The business purpose should clearly explain how the business expense is connected to the university and supports its mission. In general, business expenses for persons not directly connected to the business purpose are not reimbursable (e.g., spouses, other family members). 
• Documentation, such as receipts, agendas and/or travel itinerary must support the business purpose, validate that an expense was incurred and demonstrate that the amounts incurred are reasonable and within established limits. The IRS Accountable Plan, and therefore the university, only requires receipts for expenses of $75 or more.

Timeliness of Transaction

A transaction must be prepared and submitted through the Expense Requests System (ERS) with all appropriate receipts and/or other backup documentation within 60 days after the end of travel (for travel expenses), the expense posted date (for non-travel expenses), or expected clearing date (for advances). Expenses submitted after 60 days may still be reimbursed, but, in accordance with the IRS Accountable Plan, as taxable income to the beneficiary.  

See Topic Overview: Managing Aging and Outstanding Expense Transactions for information on how to manage the timing of  expense reports, Purchasing Card and Travel Card transactions, and advances. 

Funding Source 

Funding sources including individual or corporate donors, government agencies, and non-government sponsors have varying restrictions for their use. Business and travel expenses charged to restricted sources must be reasonable, allowable, necessary to the award and consistent with university policies. For example, when the source of funding is a sponsored award, the use of the per diem method (rates set by the U.S. government) is required for travel meal expenses. Additionally, certain expenditures, such as business entertainment, alcohol, and the costs for airfare classes above economy must be charged to an unrestricted award.

Per Administrative Guide Policy 5.4.2, university-sponsored travel is when the university pays directly or reimburses individuals for travel expenses that are reasonable and necessary to conduct university business. This includes the use of any funding source for which the university has financial responsibility and accountability, including operating budgets, donor gifts, federally-sponsored grants and awards, and any other restricted or unrestricted fund. Student and postdoctoral scholar travel that is directly related to their individual course of study, or for which academic credit may be awarded, is considered university-sponsored travel, even if the travel is funded via their base financial support.

Split or Partially Funded Travel

When reimbursable travel expenses are funded by the university and one or more external organizations the trip is considered university-sponsored travel and any portion of travel paid by the university must follow business and travel expense policy. Stanford University resources (i.e., booking channels or payment methods) may be used to book, purchase, or reimburse expenses for the Stanford portion of the travel.

If it is not easy to separate out the costs that will be covered by the external party, the Stanford Travel Card may be used to pay for the total cost of the trip, then Stanford must be reimbursed by the traveler or travel arranger for the external party portion. See How To Return Personal Expenses Charged to a Travel Card.  

Externally-sponsored Travel

When an outside institution (third party) or entity funds travel on that organization’s behalf and provides full payment for those travel expenses, the trip is considered externally sponsored. Stanford University resources may not be used to book, purchase, or reimburse expenses for externally-sponsored travel. Specifically, the use of the Stanford Travel Card, travel advances, and booking through the Stanford Travel Program are prohibited.

Costs not covered by the external organization, including extra costs incurred for personal upgrades or to enhance travel options, cannot be reimbursed by Stanford as the trip's purpose serves the external organization. 

Personal Travel

When a personal component of travel is added to a business trip, the university will only cover the costs of the business component. The charge that would have been incurred without the personal component must be documented and included in the reimbursement request. The charge that would have been incurred without that personal component must be documented through a fare comparison at the time of booking in order to appropriately process the reimbursement. In comparing the actual flight cost to the fare comparison, the university will only reimburse the traveler for the least expensive flight option. The amount of the airfare reimbursement must be adjusted accordingly.

The Travel Card may be used to pay for trips that include a component of personal travel that may not be easily separated from the booking, but it may not be used to purchase trips that are exclusively personal. In cases where the Travel Card is used to purchase trips with a personal component, the individual is responsible for reimbursing the university for the extra cost.

Commuting and Intercampus Transportation Expenses

The university will not pay employees for commuting expenses (parking fees or permits, ground transportation expenses, etc.) between their home and regular worksite. 

• For employees in a hybrid work arrangement, travel between an employee’s telecommuting worksite and their Primary Stanford Work Location is considered part of an employee’s normal commute and associated expenses are not reimbursable. For details, see Administrative Guide Policy 2.1.20: Hybrid (Telecommuting) Work Arrangements.
• For employees in a remote work arrangement, travel to a Stanford Work Location is reimbursed based on the employee’s residence. See Administrative Guide Policy 2.1.21 Remote Work Arrangements.

If an employee has a temporary assignment away from their regular worksite, payment will be made for the expense of ground transportation between their regular worksite and the assignment location or between home and the assignment location, whichever is less. 

For guidance on commute expenses for hybrid and remote work, visit the Cardinal at Work website.

Travel Period

A travel period may begin ahead of a business event, for example:

• Domestic Travel: The traveler may arrive up to one day ahead of the business event. 
• International Travel: The traveler may arrive up to two days ahead of the business event.

After the business event concludes, travelers should depart in a timely manner.

If travel is extended beyond these guidelines, travelers must provide a reasonable and clear business rationale and appropriate documentation. If the travel period is extended for personal reasons, the university does not pay for expenses incurred during those additional days. In these instances, a fare comparison for the business-only portion of the trip is required. See more about Planning and Booking personal travel. 

Travel Distance

University-sponsored travel may occur within or outside of the local area. Travel is considered inside the Local Area when the destination is within 50 miles of the traveler’s home, employee’s primary work location or Stanford’s historic campus. This Local Area Travel definition is applicable to some travel expense policies, for example, lodging. In these situations, an explanation and additional approval is required for the local lodging to support compliance with the IRS Local Travel Guide and university policies which are based on the IRS definition of an “accountable plan.” See the Lodging Policy page for more details.  

When planning and requesting approval for university-related business travel, selecting between ground transportation or air travel will generally be based on the trip distance and other factors.

• For travel of 350 miles or less round trip, ground transportation by personal vehicle, bus, shuttle service, train, ride-sharing services, taxi, rental car, personal vehicle or some combination of these is likely to be the most economical. The traveler may fly to a location that is less than 350 miles round trip if it is more economical. In these cases, the traveler should include an explanation and flight comparison demonstrating the rationale for flying. 
• For travel in excess of 350 miles round trip, commercial air travel is generally the most economical, practical, and sustainable; however, other forms of transportation such as personal vehicle, train, or ship, may be allowed in certain circumstances and should include an explanation and supporting documentation for why that option was selected. In these cases, the traveler should include an explanation and flight comparison demonstrating the rationale for not flying.

Most Direct Route

The traveler should use the most direct route for air travel and ground transportation. The university supports taking a more direct flight (fewer stops) even if it is a higher cost to support sustainability efforts, reduce complexity, and lower the risk  of travel complications. 

If the traveler takes an indirect route or interrupts a direct route, for reasons other than university business, payment for transportation expenses will be at either the actual charge or the expense that would have been incurred by traveling the direct route by the most economical means, whichever is less. The expense that would have been incurred as the most economical and direct route must be documented in the expense report, and a fare comparison is required.  

Travel Medical Accommodations

For Faculty, Staff, and Students

A Stanford-sponsored traveler who needs a medical accommodation for travel must first obtain a university-approved medical accommodation through the appropriate authority as described below:

• Requests For Faculty and Staff (Employees): Administrative Guide (AGM) 2.2.7 Requesting Workplace Accommodations For Employees With Disabilities
  • Faculty: Contact their chair, departmental or school faculty affairs officer, or local human resources.
  • Staff: Requests should go to the supervisor and human resources manager.
• Requests For Students: Diversity and Access Office and/or Stanford Office of Accessible Education: Requesting New or Additional Accommodations
  • Students: Contact the Diversity and Access Office, unless the student is traveling for academic reasons and is registered with the Office of Accessible Education (OAE), in which case they should contact their Disability Adviser (DA).

If the request is approved and includes an accommodation(s) for travel, the individual(s) responsible for determining whether the traveler is entitled to an accommodation(s) must notify Business Expense about the request for a travel medical accommodation on the traveler’s behalf by filling out the form Submit Approved Travel Medical Accommodations for Faculty, Staff and Students. This form should only be used to submit formally reviewed, documented and approved accommodations that are on file with the university.

For questions involving these processes, please contact the appropriate authorities noted above.

For Visitors

Visitors seeking a travel medical accommodation should submit a request through the department sponsoring their travel. Visitors’ travel medical accommodations can be authorized by department management and do not need to be submitted to the Business Expense team. When submitting the transaction, note management’s pre-approval of medical accommodations in the transaction’s business purpose and attach a written approval as backup documentation.

Health Care Assistant Costs

Any costs associated with health care assistants who are needed during travel should be charged to an unallowable expenditure type.

It is highly encouraged that Stanford travelers use Stanford Travel booking channels when booking flights, hotels, and rental cars for university-sponsored travel. Stanford Travel booking channels streamline the reimbursement process; offer discounts, benefits, and perks to travelers; and automatically register itineraries and any booking updates to the Travel Registry. In addition, the Stanford Travel team can provide specialized assistance as needed to travelers who book through Stanford Travel.

While Stanford Travel booking channels are a great option for most domestic and international travel, there are certain types of travel that need to be booked directly with the airline or hotel. These may include regional air travel offered by local carriers, travel for field research, ticket exchanges or reissues, or certain group reservations. See the Airfare and Lodging pages for more detail on booking and managing those travel arrangements.  For information on the booking processes for various types of travelers, see Topic Overview: Planning and Booking Travel.

It is the responsibility of the individual incurring expenses, those who assist others with incurring expenses and those involved in the preparation and approval of financial transactions to exercise good stewardship of university funds and to adhere to university policies. The individual incurring the expense and the appropriate administrator must ensure that all costs are in compliance with university travel and business expense policies prior to purchasing. Travelers are responsible for obtaining necessary approvals prior to travel. These roles and responsibilities are outlined in Reimbursements and Expense Reports.

Those responsible for spending university funds on business and travel expenses must use the appropriate purchasing, payment and reimbursement method. Depending upon the type of expenditure and circumstances, primary purchasing and payment methods for business and travel expenses include Stanford purchase requisitions, credit card programs, non-purchase order payments, expense reimbursements and advances (under special circumstances). For more information about each of these methods, refer to Topic Overview: Purchasing & Payment Methods.

Travel expenses may only be reimbursed after the travel is completed, with the exception of conference registration and expenses for travel documents and fees required to gain entry to a country (such as visa fees).

Paying for Travel Expenses

The Stanford Travel Card (TCard) is the recommended payment method for any travel costs that will not be reimbursed through the per diem method.

Stanford employees may elect to use the per diem reimbursement method for meals and/or lodging (see more about per diem in the section below). For those trips, the traveler should not use the TCard for these meals and/or expenses. Reimbursing per diem expenses charged to a TCard creates an administrative burden for both the preparer and the university.

This chart shows which travel expenses are recommended for purchase with the TCard depending on the selected reimbursement method:

TCard Usage Guidance by Reimbursement Method

As an alternative to using the TCard, personal funds may be used and a request for reimbursement can be submitted after the trip. When personal funds are used, there are different reimbursement options available depending on who is traveling and the funding source:

• Stanford travelers may select between per diem or actual reimbursement up to the published maximums. The method selected must be used for the entire trip. If the funding source of the trip is a sponsored award, Stanford travelers must use the per diem option for travel meals.
• University affiliates, non-Stanford travelers and visitors:
  • For lodging, these travelers are required to use the actual expense reimbursement method up to the published maximums, regardless of their funding source. The method selected must be used for the entire trip.
  • For travel meals, if the funding source of the trip is a sponsored award, these travelers are required to use the per diem reimbursement method. When traveling on a non-sponsored award, they are required to use the actual expense reimbursement method, and must submit receipts for expenses of $75 or more.
  • Any individual without a SUNet ID should have their affiliation to Stanford documented in the business purpose.

Per Diem Reimbursement 

Stanford uses the U.S. government per diem rates for meals and/or lodging expenses, to take advantage of governmental cost studies and to ensure general equity with grant and contract requirements. The use of the per diem method is required when travel meals will be charged to a sponsored award, including Stanford travelers, university affiliates, and visitors. To qualify for per diem reimbursement for lodging, IRS guidelines require lodging expenses to be incurred and substantiated.

• Domestic per diem rates for the continental United States (CONUS) are maintained by the U.S. General Services Administration (GSA). To view the current per diem rates for a city (or county if the city is not listed), access the GSA’s Domestic Per Diem Rates.
  • The Department of Defense (DoD) maintains the domestic per diem rates for locations outside of the continental United States (OCONUS), including  Alaska, Hawaii, U.S. Territories, and Possessions (OCONUS rates).  To view the current per diem rates for these locations, access the DoD’s Per Diem Rate Lookup.
• Foreign per diem rates are maintained by the U.S. Department of State. To view the current per diem rates for an international location, access the Foreign Per Diem Rates by Location.

When using the per diem method, documentation is required to demonstrate proof of travel, such as boarding passes and conference or hotel receipts to substantiate trip dates. Individual meal documentation or receipts are not required in the Expense Requests System. 

When creating an expense report in the Expense Requests System, the per diem tab must be used for per diem rates to be automatically calculated and applied based on the city visited. When the trip includes more than one university business stop and the cities involved have different per diem rates, the lodging per diem rate for each calendar day (beginning at 12:01 a.m.) is determined by the location where the lodgings are obtained for that night. When listing multiple cities, add each city in the Details page before selecting Generate Per Diem. 

Meal per diem rates are determined by where the meal occurred. The Expense Requests System automatically calculates the corrected travel meal amount for the first and last day of travel. For more information, visit the Travel Meals page.

Long-term Travel (30 Days or Longer)

When a traveler stays in one location for 30 days or longer, that  traveler is required to use the per diem reimbursement method for meals and lodging, and the per diem rate is reduced to 55 percent for the trip. The assumption is that when staying 30 days or longer, a traveler can find less expensive accommodations and prepare their own meals.

The reduced rate will not be calculated by the Expense Requests System, so the expense report preparer should calculate the reduced rates (0.55 x listed rate) and enter the adjusted amount in the Expense Requests System via the Adjusted Per Diem expense type in transaction lines.

Long term lodging expenses are paid only if the traveler incurs two sets of living expenses simultaneously and there is a stated Stanford business purpose for the expenses incurred during the long term travel. If the traveler rents or subleases their primary residence during the long term travel, the traveler may not be paid for lodging expenses at a location away from Stanford.

Individuals using personal funds for expenses related to university business or university sponsored travel should neither gain nor lose money in the endeavor. Employees are expected to request reimbursement only when  costs are incurred. Additionally, university expense policy maximums are independently enforced and not able to be combined, even if a total cost is equal to or less than a combination of two maximums (e.g., if a traveler does not incur a lodging expense, they may not upgrade a car rental to a luxury vehicle).

All business expense transactions must include the following documentation.
 

Some expenses may require the following documentation, depending on the circumstances noted below.

Fare Comparisons

A fare comparison is required when any of the following occur:

• The trip includes a personal component, which materially impacts travel days/times.
• The itinerary is an indirect route. 
• The airfare class is above economy and the comparison will be used to allocate excess costs appropriately. This also applies if the traveler elects to upgrade their fare and will only be reimbursed for the applicable amount.
• The most economical method of transportation is not selected for a trip (for example: a personal vehicle is selected in place of commercial air travel for a trip over 350 miles).
• The airfare will be charged to a sponsored research award and will be booked outside of the Stanford Travel program.

The fare comparison documentation is most often in the form of a screenshot of Stanford Travel search results taken the same day of booking from a Stanford Travel booking channel. The screenshot must visibly note the time and date of the search (e.g., include the taskbar on the desktop); include a broad set of search results (e.g., all applicable carriers); and should display the applicable parameters, such as the most direct route, excluding any personal stops and the appropriate fare class (e.g., coach, non-refundable). The expense report must include an attachment with the fare comparison documentation. Refer to How to: Document a Flight Comparison for more step-by-step guidance.

In comparing the actual flight cost to the fare comparison, the university will only reimburse the traveler for the least expensive flight option. The amount of the airfare reimbursement must be adjusted accordingly.

If the attached fare comparison was obtained post-travel, Business Expense will obtain a fare comparison at the time of processing, and will only reimburse the traveler based on whichever comparison is less. 

Using eReceipts to Collect and Share Receipts

The eReceipts app lets travelers and others easily upload and share images of receipts from their mobile device. The app helps users manage business and travel expense receipts required for Expense Requests System (ERS) transactions or Purchasing Card (PCard) verifications more efficiently. Receipt uploaders and their preparers can learn more about eReceipts and how to integrate it into their workflow on the eReceipts System page. 

Tips for Meals

Tips should not exceed 20% and should be based on the subtotal with taxes, excluding fees (such as for food delivery services). If a restaurant or food service provider offers a pre-calculated tip, up to the 20% option may be chosen, even if it includes other fees. Mandatory service fees/gratuities over 20% charged by restaurants for large groups are acceptable.

When the total cost of a meal includes additional banquet or service fees charged by the venue, additional tipping is not allowed and will not be reimbursed.

The total cost of a meal, including any tips, must not exceed the meal maximum. For daily meal maximums and other meals guidance, visit the Business Meals page or the Travel Meals page.

Tips for Ground Transportation

Tips to drivers should not exceed 20% of the total cost.

When car service is allowed, the total cost, including tip, must not exceed the maximum car service reimbursement.

Meals

The university reimburses for reasonable and necessary meal expenses of two types:

• A business meal is defined as a meal at which faculty, staff, students and/or guests are present for the purpose of conducting university business. 
• A travel meal is defined as an ordinary and necessary meal that a traveler has while traveling on university business.

For more information, visit the Meals Overview page.

Travel Expenses

The university pays for reasonable and necessary expenses incurred by Stanford employees, affiliates and visitors in the course of university-related business travel. Travelers should neither gain nor lose personal funds as a result of business travel on behalf of Stanford University.
Travelers must have necessary approvals and travel documents prior to travel.

• Airfare overview
• Lodging overview and lodging policy
• Meals overview, business meals, and travel meals
• Ground transportation overview

Other Common Reimbursable Expenses 

For information about other common reimbursable expenses, such as employee morale, recruitment expenses, human subjects and gifts, visit the Other Business Expenses page.

For information about tips and gratuities, see the section above.

Below are some, but not all, expenses that are considered non-permissible expenses. Unless specifically noted, listed items may not be purchased or reimbursed, regardless of the funding source. As a general policy, purchases in excess of reasonableness are not allowed. Travelers should neither gain nor lose personal funds as a result of business travel on behalf of Stanford University. Unless Stanford University has approved the purchase of a product or service in advance, these items cannot be reimbursed to a university employee, affiliate or visitor for personal use.

Any costs specifically disallowed by school, department policy, external agreement or gift restriction are non-reimbursable.