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

Taxable Reimbursements

Most employee reimbursements are NOT taxable.  The main items which are paid to employees that are considered "supplemental wages" and not as true reimbursements are meals with no overnight stay.  The others may only apply in special circumstances or to certain groups of employees.

Those reimbursements which are taxable have always been reported to the IRS on your W2, and you have been paying the FIT at year end.

Taxable reimbursements are:

• Meals with no overnight stay
• Clothing and tool allowances
• Certain moving expenses
• Some educational assistance