Employee expense reimbursements are subject to IRS guidelines for records they want us to keep. If not handled correctly and reimbursements do not meet IRS guidelines, expenses may be disallowed as a deduction and considered compensation to those employees, leaving the employer responsible for the associated payroll taxes– plus any penalties.
Taxable and nontaxable fringe benefit are scattered throughout the Internal Revenue Code. Benefits can be hidden in Sec 274, 162, 119, 132, 127, and 82. Add in numerous Announcements, Notices and Regulations and we have a complex set of rules to follow.
This course will concentrate on the development of an Accountable Expense Reimbursement Plan under Sec 274 and accompanying regulations plus recent pronouncements and inflation increases.
WE’LL ANSWER THESE AND OTHER QUESTIONS:
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What are taxable and non-taxable as wages?
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Are meal allowances nontaxable?
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Are travel allowances nontaxable?
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What other benefits are nontaxable wages?
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What meals are 100% deductible and nontaxable to employees?
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What meals are 80% deductible and nontaxable to employees?
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What meals and entertainment are 50% deductible and nontaxable to employees?