Expense Reimbursements for Employees

Understand the tax implications of employer reimbursements for employee expenses, including travel and meals. This guide details the differences between accountable and nonaccountable plans, including reporting requirements and the conditions under which expenses are deductible. Essential for both employers and employees, this resource helps ensure proper tax treatment and compliance.

Highlights:

• Accountable vs. Nonaccountable Plans: Key differences and the impact on taxable income.

• Deductible Expenses: Guidelines for deductible business expenses under accountable plans.

• Reporting Requirements: How to report reimbursements on Form W-2 and Form 2106.

• Special Cases: Rules for specific situations like meal expenses exceeding per diem rates and reimbursements for Armed Forces reservists and qualified performing artists.