COMPLIANCE - 8116.3

The travel expense policies and procedures are intended to avoid reporting travel advances as taxable wages or compensation by deducting it from an employee's payroll warrant if the travel expense claim submission requirements are not met. A travel advance is never provided as additional wages or compensation, which is considered a gift of state funds. The Constitution of California prohibits the gift of state funds.

If an agency/department fails to satisfy these requirements, IRS penalties could occur. The agency/department will pay any IRS assessed penalties and interest for non-compliance from its support appropriation(s).