Entertainment Expenses

Pre-approved entertainment costs may be reimbursed by the department or by endowment holders' own accounts. These are considered "Official Occasions"; an "official occasion" is defined as a reception, luncheon, dinner, or similar event that is sponsored and funded by UT (e.g., conferences, meetings, planning retreats, staff meetings). These functions are normally associated with special programs or conferences, University guests, faculty and staff recruitment, or business meetings that span a meal time. 

To prevent a personal tax liability, you will need to document each occasion with receipts for expenses.

• Exemption rules for Texas sales tax apply- faculty and staff will not be reimbursed for Texas sales tax charges on entertainment expenses. The university is exempt from state sales tax, so faculty or staff must follow the Texas Sales and Use Tax Exemption Certificate Instructions and present the exemption certificate to the vendor at the time of purchase of consumable or non-consumable items on behalf of the university. However, for purchases of meals at restaurants, if the sales tax exemption is not available to patrons of the restaurant, the sales tax will be reimbursed.
• For reimbursement you must complete the college's Official Occasion Expense Form.
• Entertainment expenses are limited to $75/person for an event/meeting (including tax and gratuity).
• Tips/gratuity should be limited to no more than 20%.
• Spouse/Companion in attendance: Companion expenses are generally not reimbursed unless they are for receptions, development, distinguished visitors/lecturers or recruitment purposes. In order to justify a bona fide business purpose, expenses for a University's host's companion are usually reimbursed only if the guest also brings a companion.
• Faculty and staff must submit itemized receipts for reimbursement. They must also submit a receipt showing proof of payment (if this does not already appear on the itemized receipt). If an itemized receipt or proof of payment is not available, the payee must sign a memo explaining why such is not available and the document creator should include it with the voucher paperwork. This should be mentioned in the document notes.
• Reimbursements must be processed within 60 days of the official occasion.
• ProCards cannot be used at restaurants.
• For official college procedures and FAQs please visit: http://www.utexas.edu/cola/business-affairs/manual/Entertainment