Employee expense reimbursements are subject to IRS guidelines and can be disallowed as expenses – and even considered compensation to those employees – if not handled correctly. Further, if employee expense reimbursements do not meet IRS guidelines, they may be disallowed as expenses and considered compensation to those employees, leaving the employer responsible for the associated payroll taxes – plus any penalties.

Taxable and nontaxable fringe benefits are scattered throughout the Internal Revenue Code. Benefits can be hidden in Sec 274, 162, 119, 132, 127, and 82. Add in numerous Announcements, Notices, and Regulations and we have a complex web. This course will concentrate on the development of an Accountable Reimbursement Plan under Sec 274 and accompanying regulations plus recent pronouncements and inflation increases.

Fringe Benefit Examples and How They Relate to W2 and 1099 Preparation:

• Accountable vs. non-accountable Expense Reimbursement Plans
• Record-keeping requirements of Sec. 274 & Accountable Plans
• Deductible and Non-deductible Meals
• De minimis fringe benefits
• No added cost benefits
• Cash payments
• Auto allowances
• Company vehicles
• Prizes, awards, gifts

We'll Answer These and Other Questions:

• What are the taxable and non-taxable wages?
• Are meal allowances nontaxable?
• Are travel allowances nontaxable?
• What other benefits are nontaxable wages?
• What meals are deductible and nontaxable to employees?

Learning Objectives:-

• Learn what are taxable and non-taxable wages.
• Learn what other benefits are nontaxable wages.
• Learn what meals are deductible and nontaxable to employees.