Please contact the tax team with any questions: [email protected]

U-M currently reimburses travel and some expenses associated with remote and hybrid work on a tax-free basis when the nature of the job duties requires employees to work elsewhere and travel is required to perform the job, such as cultivating donors in a regional area of the country. A similar exception includes adjunct faculty who work out of the state on more than a part-time basis because they bring an expertise that they would not have developed if they lived close to the onsite work location.  In all other cases, expenses associated with hybrid and remote work are typically not reimbursed, and on occasion when reimbursed, typically trigger taxable income to the employees

Travel Expenses and Commuting

• Employees are typically responsible for their transportation expenses to and from the onsite work location.
• Expenses for travel between the offsite and the onsite work location are typically not payable to an employee.    Expenses include airfare, hotel, taxi fees, mileage, etc.
• When the job duties due to the nature of the position do not require an employee to work offsite, reimbursements for travel expenses to the onsite work location typically trigger taxable income to the employees.

Other Remote Expenses

• Office Supplies and Equipment

  • Employees must also return or purchase the equipment when they leave U-M’s employment.

  • If a second set of equipment or reimbursement is provided (e.g. one set for the onsite and one set for the offsite work location), S/C/Us must work with the tax department to determine if a taxable event has occurred.  

  • U-M may provide an initial set of equipment, like a computer and its peripheral equipment such as monitors and keyboards, to work from an offsite location without triggering taxable income.  

• Furniture

  • Most S/C/Us do not reimburse employees for costs incurred with other equipment and furniture at an off-site location such as chairs and lift-type tabletop or sit/stand desks.  

  • If reimbursement is provided, S/C/Us must work with the tax department to determine if a taxable event has occurred.   

  • Employees must also return or purchase the property when they leave U-M’s employment.

• Meals

  • If S/C/Us provide complimentary meals to employees who are attending Zoom and other digital meetings while working from their off-site location, the value of the meals triggers taxable income for the employees.

If a taxable event has occurred, the S/C/U must submit the expense/reimbursement through the Payroll office to include taxable income in the employee’s wages.   S/C/Us could choose to gross up or cover the taxes on expenses/reimbursements.