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.
Get weekly updates on breaking news and business advice to help you advance your career! The week's top stories and resources will be sent right to your inbox. Choose the topics you're interested in:
We value your Privacy.
Previous post: Playing it "safe" during RIF costs Sprint $57 million
Next post: Avoid post-vacation e-mail deluge