State Employee
Reimbursement Changes
 

Summary

What is changing?

Why is it changing?

How does this affect you?

Meal Rate Increase

Taxable Reimbursements

Travel Advances

Payment Schedule

Example

Important Considerations
  for Employees

Reimbursement Changes Brochure

  

Example
(lunch, no overnight stay)

 

Currently

Jan 1

Lunch

$7.00

$9.00

  less:

 

 

    SS and Medicare

-

$0.69

    FIT

-

$2.25

Amount in-hand

$7.00

$6.06

 

 

 

Reported to IRS

$7.00

$9.00

  less:

 

 

     FIT paid at year end

$1.75

-

Employee Net

$5.25

$6.06
 

Under the new scenario, the employee actually nets $0.81 more for the in-state lunch reimbursement. Remember that it is only "Meals-not-overnight" which are required by the IRS to be taxed.  For this same lunch WITH an overnight stay, the employee would net the entire $9.00.

The value of these meals have always been being reported on your W2 and you have been paying the FIT at the end of the year.