Employee Business Expense Reimbursement: Tax Compliance for 2019

Reimbursements paid under an accountable plan can be left out of employee wages, but only if strict documentation, recordkeeping and timing rules are met. This 90-minute employee expense reimbursement webinar explains tax compliance under both accountable and non-accountable plans.

You'll learn how employees must substantiate expenses and return excess reimbursements on time, when per diem arrangements can replace actual substantiation, how to find maximum per diem rates and use the high-low method, and how to report reimbursements that don't qualify and must be added to wages.

The session also covers control and accounting procedures and best practices for processing reimbursements through payroll or accounts payable.

• Determine whether an expense reimbursement qualifies for exclusion from wages
• Explain what is needed to substantiate expenses and benefits under an accountable plan
• Use per diem rates and the high-low method correctly
• Process reimbursements and collect excess advances on time
• Identify when reimbursements or use of company resources must be included in wages
• Set up control and accounting procedures for reimbursements

• Accountable and non-accountable expense reimbursement plans
• When per diem rates may be used and why employers use them
• Determining maximum per diem rates and using the high-low method
• Establishing and administering an accountable reimbursement plan
• Substantiation, recordkeeping and timely return of excess reimbursements
• Control and accounting procedures for expense reimbursements
• Reporting non-qualifying reimbursements as wages
• Best practices for processing reimbursements in payroll or accounts payable

Employee expense reimbursement has been a target of IRS audit attention, and mistakes can turn tax-free reimbursements into taxable wages. Knowing the rules helps you report reimbursements and company-provided benefits correctly.

This session suits payroll and accounts payable staff and supervisors, public accountants, internal auditors, tax compliance officers, enrolled agents, owners, managers with tax oversight, public agency managers, and audit, compliance and risk staff.

Payroll Supervisors and PersonnelAccounts Payable Supervisors and Personnel Public AccountantsInternal AuditorsTax Compliance Officers Enrolled Agents Officers and Managers with Tax Compliance Oversight Company / Business OwnersManagers/ Supervisors Public Agency Managers Audit and Compliance Personnel / Risk Managers 

Patrick Haggerty is a tax practitioner, author, and educator. His work experience includes non-profit organization management, banking, manufacturing accounting, and tax practice. He began teaching accounting at the college level in 1988. He is licensed as an Enrolled Agent by the U. S. Treasury to represent taxpayers at all administrative levels of the IRS and is a Certified Management Accountant. He has written numerous articles and a monthly question and answer column for payroll publications. In addition, he regularly develops and presents webinars and presentations on a variety of topics including Payroll tax issues, FLSA compliance, information returns, and accounting.