“The IRS knows full well how lax a lot of employees are about documenting their expenses—and how often employers let it slide.” - Employee Expense Reimbursements: Compliance Workshop
Whenever employment tax specialist Mindy Mayo offers her latest webinar on expense reimbursements, we can expect a lively Q&A session, as the gray areas in the IRS’ expectations never stop coming. From recent sessions we’ve collected a handful of the most pertinent questions and Mindy’s responses to them:
1. When it comes to meal and entertainment expenses, what is the IRS' dollar minimum that requires substantiation from an employee?
The IRS requires substantiation at $75—but most companies, Mindy says, lower their own bar to about $25.
2. If an employee uses a personal credit card for a business purchase, is there a time limit for reimbursement?
Most companies stick with a flat-out 60-day rule: Expenses such as these will be reimbursed up to 6...(register to read more)