MVWA EMPLOYEE TRAVEL PROCEDURES

Originally Adopted: August 1998
Last Review and Approval: September 27, 2021

The Upper Mohawk Valley Regional Water Authority (dba, Mohawk Valley Water Authority, hereafter referred to as the Water Authority) will pay for travel related expenses to the extent that such travel is necessary or in the best interest of the Water Authority to fulfill its obligations and objectives. All travel should be properly authorized in advance by completing a REQUEST FOR TRAVEL form which must be signed by the employee, the Department Head, and when required, the Executive Director. All arrangements are the responsibility of the initiating department.

Under $100 and no overnight:

Department Head only.

Over $100 total or any overnight:

Department Head and Executive Director.

PROTOCOL:

A signed REQUEST FOR TRAVEL form must submitted to the Executive Director no later than ten (10) working days prior to the date of departure. Travel arrangements and registrations should be made only after the proper approval is obtained.

Any payment for plane fare and/or hotel arrangements or related conference fee must be made by company credit card or company check.

Upon return, an EMPLOYEE EXPENSE REIMBURSEMENT REPORT must be completed within ten (10) working days. All receipts for expenses should be attached, where practical, to this form with the exception of meal expenses. These will be reimbursed according to the current Federal per diem rate as described below.

For all other expenses incurred during the travel event, a receipt can include a credit card receipt, a credit card statement, a copy of a canceled check, or other such receipt which shows proof of payment. The receipt should clearly indicate the amount and purpose of the payment.

Hotel receipts should be itemized if possible. Copies of registration forms are not proof of payment for program registration. Exact amounts, not rounded numbers, should be indicated.

In addition, a narrative report of no more than one page should be submitted to the Department Head and Executive Director summarizing accomplishments and/or pertinent information that was obtained during the trip. This report should be completed within five (5) days after returning.

Employees are expected to exercise good judgment and incur only expenses that are reasonable, necessary, and economical. First Class commercial transportation is not permitted. Should there be any questions concerning appropriate expenses, an employee should consult with the person authorizing the travel prior to travel.

Employees may request a Travel Advance from the Water Authority for out-of-pocket expenses that have been detailed on the request form. The amount requested should be indicated on the request fo1m. Advances will be approved at the discretion of the Executive Director. The advance will be made no sooner than three (3) days prior to the departure date and must be used exclusively for approved expenses. Travel advances should be deducted from the total reimbursement as detailed on the EMPLOYEE EXPENSE REIMBURSEMENT REPORT. If it is dete1mined that an amount is due back from the employee to the Water Authority, such payment should be made to the Board within ten (10) days from notification.

The Water Authority will reimburse, or pay in advance if necessary, a maximum of seventy-four ($74.00) dollars per day for meals, including tax and tip, to employees required to travel. These amounts are in accordance with the Federal per diem guidelines. For travel of less than one day dinner and breakfast will typically not be covered; exceptions will be considered on an individual basis. Meal allowance and incidentals is as follows:

            Meals           $69.00
            Incidentals     $ 5.00
                Total       $74.00 
        

The meal allowance when traveling to high-cost localities (New York City, etc.) is seventy-nine ($79.00) dollars per day including tax and tip. The high-cost localities as recognized by the Internal Revenue Service's federal per diem rates are listed on the lat pages of this policy.

            Meals           $74.00
            Incidentals     $ 5.00
                Total       $79.00 
        

Meal allowance should not be claimed for any meal which was paid for by the conference, seminar, symposium, or other party.

The use of Water Authority vehicles for travel may be authorized by a Department Head or the Executive Director under the approval procedures established above. Under this arrangement, no mileage reimbursement is paid. Employees should leave with a full tank of gas and obtain receipts for any additional gasoline required to complete the trip. Reimbursement will be made on the basis of receipts only.

If personal cars are used on Water Authority business, employees will be reimbursed at the current authorized rate per mile as recognized by the Internal Revenue Service. Employees using their own vehicles for company business must have their own auto insurance. The Water Authority may, at its discretion, reimburse an employee for the employee's insurance deductible for any collision damages to an employee's vehicle if damaged during the course of business. No deductible will be reimbursed if a traffic violation on the pa1t of the employee was determined to be a contribution factor to an accident. A copy of the police report should be submitted with any request for a deductible reimbursement.

A rental car may be authorized for use by an employee when it is considered economical or necessary. Mid-size or compact cars are acceptable. The Water Authority carries insurance covering car rentals. Therefore, the optional collision insurance should not be taken on commercial car rentals .

.High-Cost Localities. Please see IRS Notice 2018-77 for a list of high-cost localities.

2021-2022 Special Per diem Rates. Please see IRS Notice 2021-52

This annual notice provides the 2021-2022 special per diem rates for taxpayers to use in substantiating the amount of ordinary and necessary business expenses incurred while traveling away from home, specifically (1) the special transportation industry meal and incidental expenses (M&IE) rates, (2) the rate for the incidental expenses only deduction, and (3) the rates and list of high-cost localities for purposes of the high-low substantiation method. This notice also modifies Notice 2020-71, 2020-40 I.RB. 786, to change the portion of the year Sedona, Arizona is a high-cost locality under section 5 of Notice 2020-71.

Rev. Proc. 2019-48, 2019-51 I.RB. 1392 (or successor), provides rules for using a per diem rate to substantiate, under§ 274(d) of the Internal Revenue Code and § 1.274-5 of the Income Tax Regulations, the amount of ordinary and necessary business expenses paid or incurred while traveling away from home. Taxpayers using the rates and list of high-cost localities provided in this notice must comply with Rev. Proc. 2019-48 (or successor). Notice 2020-71, as modified by this notice, provides the rates and list of high-cost localities for the period October 1, 2020, to September 30, 2021.

The special M&IE rates for taxpayers in the transportation industry are $69 for any locality of travel in the continental United States (CON US) and $7 4 for any locality of travel outside the continental United States (OCONUS). See section 4.04 of Rev. Proc. 2019-48 (or successor).

The rate for any CON US or OCONUS locality of travel for the incidental expenses only deduction is $5 per day. See section 4.05 of Rev. Proc. 2019-48 (or successor).

  1. Annual high-low rates. For purposes of the high-low substantiation method, the per diem rates in lieu of the rates described in Notice 2020-71 (the per diem substantiation method) are $296 for travel to any high-cost locality and $202 for travel to any other locality within CON US. The amount of the $296 high rate and $202 low rate that is treated as paid for meals for purposes of§ 274(n) is $74 for travel to any high-cost locality and $64 for travel to any other locality within CONUS. See section 5.02 of Rev. Proc. 2019-48 (or successor). The per diem rates in lieu of the rates described in Notice 2020-71 (the meal and incidental expenses only substantiation method) are $74 for travel to any high-cost locality and $64 for travel to any other locality within CON US.
  2. High-cost localities. The following localities have a federal per diem rate of $249 or more, and are high-cost localities for the specified portion of the calendar year.
State Key City County or Other Defined Location Portion of Calendar Year
Arizona Sedona City Limits of Sedona October 1 - December 31,
March 1 -April 30, and
September 1 - September 30
California Los Angeles Los Angeles, Orange, Ventura,Edwards AFB less the city of Santa Monica October 1 - October 31 and
June 1 - September 30
Mill Valley/San Rafael/Novato Marin October 1 - October 31 and
June 1 - September 30
Monterey Monterey June 1 - August 31
Napa Napa October 1 - November 30 and
April 1 - September 30
Oakland Alameda October 1 - September 30
San Diego San Diego February 1 - July 31
San Francisco San Francisco October 1 - September 30
San Mateo/Foster City/Belmont San Mateo October 1 - September 30
Santa Barbara Santa Barbara October 1 - September 30
Santa Monica City limits of Santa Monica October 1 - September 30
Sunnyvale/PaloAlto/San Jose Santa Clara October 1 - September 30
Colorado Aspen Pitkin October 1 - March 31 and
June 1 - September 30
Crested/Butte/Gunnison Gunnison December 1 - March 31
Sunnyvale/PaloAlto/San Jose Santa Clara October 1 - September 30
Denver/Aurora Denver, Adams, Arapahoe, and Jefferson October 1 - October 31 and
April 1 - September 30
Grand Lake Grand December 1 - March 31
Silverthorne/Breckenridge Summit December 1 - March 31
Telluride San Miquel October 1 - September 30
Vail Eagle October 1 - September 30
Delaware Lewes Sussex July 1 - August 31
District of Columbia Washington D.C. (also the cities of Alexandria, Falls Church, and Fairfax, and the counties of Arlington and Fairfax, in Virginia; and the counties of Montgomery and October 1 - September 30 Prince George's in Maryland) (See also Maryland and Virqinia) October 1 - September 30
Florida Boca Raton/Delray Beach/Jupiter Palm Beach and Hendry December 1 - April 30
Fort Lauderdale Broward January 1 - April 30
Fort Myers Lee February 1 - March 31
Fort Walton Beach/De Funiak Springs Okaloosa and Walton June 1 - July 31
Key West Monroe October 1 - July 31
Miami Miami-Dade December 1 - March 31
Naples Collier December 1 - April 30
Vero Beach Indian River December 1 - April 30
Georgia Jekyll Island/Brunswick Glynn March 1 - July 31
Illinois Chicago Cook and Lake October 1- November 30 and
April 1 - September 30
Maine Bar Harbor/Rockport Hancock and Knox July 1 - August 31
Kennebunk/Kittery/Sanford York July 1 - August 31
Maryland Ocean City Worcester July 1 - August 31
Washington, DC Metro Area Montgomery and Prince George's October 1 - September 30
Massachusetts Boston/Cambridge Suffolk, city of Cambridge October 1 - September 30
Falmouth City limits of Falmouth July 1 - August 31
Hyannis Barnstable less the city of Falmouth July 1 - August 31
Martha's Vineyard Dukes June 1 - September 30
Nantucket Nantucket June 1 - September 30
Michigan Petoskev Emmet July 1 - August 31
Traverse City Grand Traverse July 1 - August 31
Montana Big Sky/West Yellowstone/Gardiner Gallatin and Park June 1 - September 30
New Mexico Carlsbad Eddy October 1 - September 30
New York Lake Placid Essex July 1 - Auqust 31
New York City Bronx, Kings, New York, Queens, and Richmond October 1 - December 31 and
March 1 - September 30
Oregon Portland Multnomah October 1 - October 31 and
June 1 - September 30
Seaside Clatsop July 1 - August 31
Pennsylvania Hershey Hershey June 1-August31
Philadelphia Philadelphia October 1 - November 30,
March 1 - June 30, and
September 1 - September 30
Rhode Island Jamestown/Middletown/Newport Newport June 1 - August 31
South Carolina Charleston Charleston, Berkeley, and Dorchester October 1 - November 30 and
March 1 - September 30
Hilton Head Beaufort June 1 - August 31
Tennessee Nashville Davidson October 1 - September 30
Utah Park City Summit December 1 - March 31
Virginia Virginia Beach City of Virginia Beach June 1 - August 31
Wallops Island Accomack June 1 - August 31
Washington, DC Metro Area Cities of Alexandria, Falls Church, and Fairfax; Counties of Arlington and Fairfax October 1 - September 30
Washington Seattle King October 1 - September 30
Vancouver Clark, Cowlitz, and Skamania October 1 - October 31 and
June 1 - September 30
Wyoming Cody Park June 1 - September 30
Jackson/Pinedale Teton and Sublette June 1 - September 30
  1. Changes in high-cost localities. The list of high-cost localities in this notice differs from the list of high-cost localities in section 5 of Notice 2020-71.
    1. The following locality has been added to the list of high-cost localities: Hilton Head, South Carolina.
    2. The following locality has changed the portion of the year in which it is a high-cost locality: Jamestown/Middletown/Newport, Rhode Island.
    3. The following locality has been removed from the list of high-cost localities: Gulf Breeze, Florida.

The specified period for which Sedona, Arizona is a high cost locality under section 5, paragraph 2 of Notice 2020-71 is modified to be October 1, 2020 - December 31, 2020; March 1, 2021 - April 30, 2021; and September 1, 2021 - September 30, 2021. This section 6 is effective for per diem allowances for lodging, meal and incidental expenses, or for meal and incidental expenses only, that are paid to any employee on or after October 1, 2020, for travel away from home on or after October 1, 2020.

Except as provided in section 6 of this notice, this notice is effective for per diem allowances for lodging, meal and incidental expenses, or for meal and incidental expenses only, that are paid to any employee on or after October 1, 2021, for travel away from home on or after October 1, 2021 . For purposes of computing the amount allowable as a deduction for travel away from home, this notice is effective for meal and incidental expenses or for incidental expenses only paid or incurred on or after October 1, 2021. See sections 4.06 and 5.04 of Rev. Proc. 2019-48 (or successor) for transition rules for the last 3 months of calendar year 2021.

Notice 2020-71 is modified and superseded.

The principal author of this notice is James Liechty of the Office of Associate Chief Counsel (Income Tax & Accounting). For further information regarding this notice contact James Liechty at (202) 317-7005 (not a toll-free call).