Review per diem reimbursements: IRS looking closer — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Review per diem reimbursements: IRS looking closer

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Make sure you’re closely tracking expense reimbursements. Since the beginning of 2007, the IRS has issued a stern warning: The entire amount of the expenses would be subject to income tax and employment tax if your organization routinely pays per diem allowances above the federal per diem rate but fails to track those allowances (and doesn’t require employees to substantiate all expenses or repay excess amounts), or you fail to include the excess amount in employees’ wages.  

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