Expense reimbursements are only non-taxable when they are paid and recorded under an accountable plan. This 75-minute expense reimbursement webinar explains what that means and how to check your own reimbursement policy for compliance.
Reimbursements get close attention in payroll tax audits. You'll review the IRS rules of thumb: the expense must benefit the employer, relate to your trade or business, not be extravagant and be properly accounted for. The session covers per diems for lodging, meals and incidentals, and the taxable limits for moving expenses, meals, entertainment, uniforms and more.
You'll also get the latest on how the OBBB extended deductions from the 2017 Tax Cuts and Jobs Act and created others, plus best practices and court case studies on common mistakes.
WHY SHOULD YOU ATTEND?
Reimbursements that aren't handled correctly can be disallowed as expenses or treated by the IRS as compensation. When that happens, your company owes the payroll taxes plus any penalties. Making sure reimbursements are truly non-taxable is hard even for experienced payroll professionals.
The session suits HR and payroll managers, compliance managers, budget staff, department managers, and fringe benefit and travel staff, and helps payroll and accounts payable work from the same rules.
AREA COVERED
Accountable vs non-accountable plans
- General guidelines on non-taxable expenses vs wages
- The three elements of an accountable plan: business connection, substantiation and reconciling
- Employment tax treatment
Per diems
- Amounts for lodging, meals and incidentals
- Recordkeeping
- Sources for current rates
IRS rules of thumb
- Employer vs employee benefit
- In the course of trade or business
- Reasonable vs extravagant
- Accounting and documentation
Specific types of reimbursement
- Pre-employment expenses
- Moving expenses
- Meals and entertainment
- Uniforms
- Automobile travel
- Employee personal property
The TCJA and OBBB
- Meals and eating facilities
- Moving expenses
- Transportation fringe benefits
Best practices for payroll managers
- Coordinating accounts payable and payroll
- Reimbursement policy
- State regulations
- Identifying and preventing employee fraud
- Case studies
LEARNING OBJECTIVES
- Explain the difference between accountable and non-accountable plans
- Apply the three elements of an accountable plan to your reimbursement policy
- Use per diems and keep the records needed to support them
- Apply the IRS rules of thumb to specific types of expenses
- Describe how the OBBB and TCJA affect meals, moving and transportation benefits
- Improve coordination between payroll and accounts payable and help prevent employee fraud
WHO WILL BENEFIT?
- HR Managers
- Payroll Managers
- Budget Personnel
- HR and Payroll Compliance Managers
- Department Managers
- Fringe Benefit and Travel Staff
Reimbursements that aren't handled correctly can be disallowed as expenses or treated by the IRS as compensation. When that happens, your company owes the payroll taxes plus any penalties. Making sure reimbursements are truly non-taxable is hard even for experienced payroll professionals.
The session suits HR and payroll managers, compliance managers, budget staff, department managers, and fringe benefit and travel staff, and helps payroll and accounts payable work from the same rules.
Accountable vs non-accountable plans
- General guidelines on non-taxable expenses vs wages
- The three elements of an accountable plan: business connection, substantiation and reconciling
- Employment tax treatment
Per diems
- Amounts for lodging, meals and incidentals
- Recordkeeping
- Sources for current rates
IRS rules of thumb
- Employer vs employee benefit
- In the course of trade or business
- Reasonable vs extravagant
- Accounting and documentation
Specific types of reimbursement
- Pre-employment expenses
- Moving expenses
- Meals and entertainment
- Uniforms
- Automobile travel
- Employee personal property
The TCJA and OBBB
- Meals and eating facilities
- Moving expenses
- Transportation fringe benefits
Best practices for payroll managers
- Coordinating accounts payable and payroll
- Reimbursement policy
- State regulations
- Identifying and preventing employee fraud
- Case studies
- Explain the difference between accountable and non-accountable plans
- Apply the three elements of an accountable plan to your reimbursement policy
- Use per diems and keep the records needed to support them
- Apply the IRS rules of thumb to specific types of expenses
- Describe how the OBBB and TCJA affect meals, moving and transportation benefits
- Improve coordination between payroll and accounts payable and help prevent employee fraud
- HR Managers
- Payroll Managers
- Budget Personnel
- HR and Payroll Compliance Managers
- Department Managers
- Fringe Benefit and Travel Staff
