Re: Sales Tax Question Akhande Khan 24 Mar 2006 13:42 EST

Hi Kris,
Thank you for your response.
I was talking about reimbursing sales tax employees pay at restaurants for
business meals. These are legitimate business related expenses
(entertainment expense was perhaps poor choice of words), and reimbursement
of sales tax associated with restaurant meals are allowed by the State
(Ohio).
Akhande

Kris Rhodes wrote:

>
> I would think moving to reimburse tax on entertainment expenses would be
> such a burden that it was not worth the cost of changing the policy.  Or
> is the move to reimburse entertainment expenses and the associated tax?
>
> As entertainment is unallowable on Federal grants I assume your
> questions relates most directly to your F&A rate development, all
> reimbursements for entertainment and the associated taxes are considered
> unallowable and would be excluded for rate development purposes.  If
> your question relates to charging just the tax directly to a federal
> grant, this also would be unallowable.
>
> _________________________________________
> Kris Rhodes MS, CRA
> Director, Grants Administration
> Wake Forest University Health Sciences Center
> Phone:  336-716-3019
>
> -----Original Message-----
> From: Research Administration List [mailto:xxxxxx@HRINET.ORG] On
> Behalf Of Akhande Khan
> Sent: Wednesday, March 22, 2006 12:55 PM
> To: xxxxxx@HRINET.ORG
> Subject: [RESADM-L] Sales Tax Question
>
> Hi all,
> Our institution is in the process of drafting a new policy that will
> allow reimbursement of sales tax paid by employees for entertainment
> expenses such as  restaurants. We are in Ohio and State allows such
> reimbursements.
> I am concerned about federal grants. Can we reimburse tax on
> entertainment expense in federal grants? We are public and tax exempt.
> Any help you can provide will be greatly appreciated.
>
> Akhande Khan
> Director of Grants Accounting
> Youngstown State University
>
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