Employee Expense Reimbursements

 

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Employee Expense Reimbursements

Are you doing it right? Solid information for employees and accounting departments …

Employees don't want to be taxed on expense reimbursements – and neither does your company. But what expenses can you legally pay without incurring payroll taxes? Get the guidance you need with Employee Expense Reimbursements: Best Practices to Pay Employees and Avoid Conflicts With the IRS.

This Executive Summary helps you reimburse expenses the right way to avoid taxes and penalties. Your satisfaction is guaranteed.

checkbox Yes, I want to understand the difference between taxable and non-taxable employee expenses. Send me Employee Expense Reimbursements: Best Practices to Pay Employees and Avoid Conflicts With the IRS. I'll examine the Executive Summary risk-free, and if I'm dissatisfied in any way, I'll return it for a full refund.
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Dear Colleague:

Avoiding taxes while also avoiding audits, penalties and interest payments – that’s the goal when dealing with the IRS.

Too bad it’s so tricky, especially when you’re dealing with employee expense reimbursements. Not only must you know if an expense is legitimate, you also must determine if it can be reimbursed through accounts payable or if has to go through payroll, with all the tax implications that entails.
But now there’s help, thanks to Employee Expense Reimbursements: Best Practices to Pay Employees and Avoid Conflicts With the IRS. This Executive Summary gives you clear guidelines to follow in areas that are otherwise unclear – areas where mistakes have major consequences.
Employee Expense Reimbursements is authored by employment tax specialist Mindy Harada Mayo. In 32 powerful pages, she guides you through the key areas you must understand to minimize taxes while compensating employees properly – and to avoid the wrath of the IRS. Mayo’s content-rich report covers:
  • Accountable plans. Your foundation for following the rules.
  • Use of per diems. You may be better off paying a flat amount instead of following an expense reimbursement plan.
  • Travel pay. Sometimes taxable, sometimes not. You need to know the difference as well as the IRS does.
  • Other expenses. Again, taxable or not? Better know for sure.
  • Accounting/employment tax treatment. Should your reimbursements be made from accounts payable or payroll?
Like we said, it’s tricky. That’s why this Executive Summary is so essential for your bottom line and peace of mind. And it’s why the report concludes with best practices for your payroll and accounts payable departments to follow (starting with communication) to avoid reclassification or disallowance of expenses.
Yes, help me reimburse business expenses in the most tax-advantaged way – without putting my employees or my company in jeopardy.
checkbox Send me Employee Expense Reimbursements: Best Practices to Pay Employees and Avoid Conflicts With the IRS. I must be completely satisfied with this Executive Summary, or you'll refund my money, no questions asked.
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You couldn’t find a better guide to lead you through the expense reimbursement minefield. Meet Mindy Harada Mayo.

Here at Business Management Daily, we take our Executive Summaries seriously. Only true experts are allowed to contribute.

Employment tax specialist Mindy Harada Mayo more than meets our high standards. She is a director in the Human Capital Tax Practice of Ryan, LLC … advises organizations about financial and operational risk management … and represents clients before state and federal agencies during employment tax audits or controversies.

Besides sharing her expertise, Mayo takes a practical approach to teaching by using tax law case studies. They range from a cable company whose installers provide their own tools to a health care firm paying nurses for travel to remote hospitals.

Mayo begins with the facts about the cases, asks you to keep them in mind as you read through the report, then presents the IRS decisions at the end. This illuminating technique greatly enhances your understanding.

Then Mayo dives into the laws and regulations you must understand to stay out of hot water with the IRS. Number one on the list: Have an accountable plan.

It’s right in the IRS regulations, and it’s simply stated: If you reimburse employees for business expenses under an accountable plan, you do not have to withhold and pay payroll taxes.

But the simplicity ends there. You need to know your terms as the IRS defines them. For example:
  • What is a reimbursement … an allowance … an advance? They seem like words in plain English, but what do they mean in IRS speak?
  • What are ordinary and necessary expenses? Does ordinary mean the expenses must be incurred on a regular basis? Does necessary mean vital to the continuation of the business? You may be surprised by the answers here – and you and your employees may be paying more taxes than needed.
  • What are the requirements for expenses to have a business connection? Is the requirement satisfied “if a payor pays an amount to an employee regardless of whether the employee incurs or is reasonably expected to incur deductible business expenses”? That’s language from the IRS, and Mayo helps you decipher it. The answer relates to wage recharacterization – a term that needs to become part of your vocabulary.
Plan accountability also includes diary-keeping, other record-keeping, and the need to return unused advances in a reasonable period of time. When you follow the rules, everyone is happy, including the IRS. When you break the rules? The IRS is unhappy, which means everyone is unhappy – you and your employees alike.
Yes, help me reimburse business expenses in the most tax-advantaged way – without putting my employees or my company in jeopardy.
checkbox Send me Employee Expense Reimbursements: Best Practices to Pay Employees and Avoid Conflicts With the IRS. I must be completely satisfied with this Executive Summary, or you'll refund my money, no questions asked.
Send the Executive Summary now.
We respect your privacy.
There’s much more in Employee Expense Reimbursements, because you must know much more to stay out of harm’s way with the IRS.

Employee Expense Reimbursements packs a wealth of actionable knowledge into its 32 pages. Mayo brings you up to speed on all the essentials, including:
  • The per diem method of substantiating away-from-home expenses. How does the IRS define per diem? What if your per diem rate exceeds the federal rate – must your employee substantiate all expenses or only those above the federal rate? What happens if the employee fails? Hint: It doesn’t just impact the employee.
  • Travel pay. Here’s a big point of contention with the IRS and employers. Once travel is no longer considered temporary or transitory, any expenses paid by the employer become compensation and are Employee Expense Reimbursementssubject to payroll taxes. But what is a temporary assignment versus a long-term one? What constitutes proof of travel? And what about travel expenses for a spouse or dependents? Better get the answers.
  • Other expenses. This wide-ranging section covers pre-employment expenses, including travel to interviews, agency fees, and moving expenses … commuting expenses, including mileage, the use of a company car, valuation, the de minimis exception, and the sampling method of substantiation … meals and entertainment, including directly related vs. associated entertainment, and lavish and extravagant expenses. Are expenses at deluxe restaurants, hotels, nightclubs, and resorts allowable? Find out.
  • Accounting/employment tax treatment. How exactly should you reimburse expenses – from accounts payable, payroll, or a combination of the two? When do you withhold taxes, and how much? Where do you report them on a W-2? Don’t guess, know.
Mayo wraps it all up with best practices for your company to follow, including better communication between accounts payable and payroll … five guidelines for document management … and 10 kinds of employee fraud, plus 10 safeguards against it.

As Mayo concludes, “The lines are never black-and-white as to when payments are taxable and when they are not.” Which is why you need her guidance through the vast gray area of Employee Expense Reimbursements.
Yes, help me reimburse business expenses in the most tax-advantaged way – without putting my employees or my company in jeopardy.
checkbox Send me Employee Expense Reimbursements: Best Practices to Pay Employees and Avoid Conflicts With the IRS. I must be completely satisfied with this Executive Summary, or you'll refund my money, no questions asked.
Send the Executive Summary now.
We respect your privacy.
You’ve already seen why Employee Expense Reimbursements: Best Practices to Pay Employees and Avoid Conflicts With the IRS is a must for your company. But this Executive Summary gives you even more.

As you near the end of Employee Expense Reimbursements, you’ll come back to those case studies that kicked off the report. Will you be able to predict the IRS ruling for each case?

I got the answers right, thanks to Ms. Mayo’s excellent, easy-to-follow guidance. I’m betting you will, too. The case studies are a great way to cement your knowledge and ensure you follow the rules moving forward.

Employee Expense ReimbursementsBut Mayo doesn’t stop there. She adds an appendix with three handy tables to help you 1) answer everyday questions about record-keeping requirements, 2) determine the annual lease value of a car, and 3) know which IRS forms to use when reporting travel, entertainment, gift, and automobile expenses and reimbursements.
The bottom line? The knowledge you’ll gain from Employee Expense Reimbursements is vital because it ultimately affects your organization’s bottom line, not to mention the compensation and satisfaction of your employees. This report helps you protect both financial and human capital.
The price for this report? You’ll be surprised at how reasonable it is. No, not just reasonable – it’s an exceptional bargain given how important the topic is and how much wisdom Mayo packs into those 32 pages.

Remember, you have my money-back guarantee. If this Executive Summary doesn’t impress you from the introduction to the appendix, I’ll give you a full refund. No hassle. No questions asked.

Order this Executive Summary now. Why pay more in payroll taxes than you have to, or set yourself up for a visit from the IRS?


Sincerely,
Phillip Ash
Philip A. Ash
Publisher
Yes, help me reimburse business expenses in the most tax-advantaged way – without putting my employees or my company in jeopardy.
checkbox Send me Employee Expense Reimbursements: Best Practices to Pay Employees and Avoid Conflicts With the IRS. I must be completely satisfied with this Executive Summary, or you'll refund my money, no questions asked.
Send the Executive Summary now.
We respect your privacy.
P.S. We touched upon employee fraud above. Mayo points out that one of the easiest ways to steal from a company is through expense reimbursements. In fact, the Association of Certified Fraud Examiners reports that about 14.5% of all misappropriations involve expense reimbursement fraud.

If this Executive Summary helps you uncover such practices – or prevents them from happening with the safeguards Mayo suggests – you will recoup your modest investment many times over.

Even if all your employees are scrupulously honest, it’s all too easy to make an honest mistake with reimbursements that can cost your company money and put you in jeopardy with the IRS.

Why risk it? Order now.


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